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HomeMy WebLinkAbout~Master - January 10, 2023, Regular Meeting of the Ames City CouncilAGENDA REGULAR MEETING OF THE AMES CITY COUNCIL COUNCIL CHAMBERS – CITY HALL JANUARY 10, 2023 NOTICE TO THE PUBLIC: The Mayor and City Council welcome comments from the public during discussion. If you wish to speak, please complete an orange card and hand it to the City Clerk. When your name is called, please step to the microphone, state your name for the record, and limit the time used to present your remarks in order that others may be given the opportunity to speak. The normal process on any particular agenda item is that the motion is placed on the floor, input is received from the audience, the Council is given an opportunity to comment on the issue or respond to the audience concerns, and the vote is taken. On ordinances, there is time provided for public input at the time of the first reading. CALL TO ORDER: 6:00 p.m. PROCLAMATIONS: 1. Proclamation for “Slavery and Human Trafficking Prevention and Awareness Month,” January 2023 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. 2. Motion approving payment of claims 3. Motion approving Minutes of Regular Meeting on December 13, 2022, and Special Meeting on December 20, 2022 4. Motion approving Change Orders for period December 1–15, 2022 and December 16-31, 2022 5. Motion setting January 28, 2023, as Special City Council Goal Update Session 6. Motion approving ownership update for Class C Liquor License with Catering Privilege and Sunday Sales - Hy-Vee Market Café, 3800 Lincoln Way 7. Motion approving the renewal of the following Beer Permits, Wine Permits, and Liquor Licenses a. Class C Liquor License with Outdoor Service and Sunday Sales – Chipotle Mexican Grill, 435 South Duff Ave – Pending Dramshop Review b. Class C Liquor with Sunday Sales - Fuji Japanese Steakhouse, 1614 S. Kellogg Ave. 101 c. Class A Liquor License with Sunday Sales - American Legion Post #37, 225 Main - Pending Dramshop Review d. Special Class C Liquor License with Sunday Sales - Springhill Suites, 1810 SE 16th St e. Class C Liquor with Catering Privilege, Outdoor Service, and Sunday Sales - Dublin Bay, 320 S 16th 2 f. Class E Liquor License with Class B Wine Permit, Class C Beer Permit (Carryout Beer), and Sunday Sales - The Filling Station, 2400 University Blvd g. Special Class C Liquor License (B/W) - Clouds Coffee, 119 Stanton Ave Ste 701 – Pending Dramshop Review h. Class C Liquor License with Outdoor Service and Sunday Sales - The Angry Irishmen, 119 Main Street -Pending Dramshop Review i. Class C Liquor License with Catering Privilege and Sunday Sales - Hy-Vee Market Café, 3800 Lincoln Way -Pending Dramshop Review 8. Requests from Ames Main Street (AMS) for Downtown Dollar Days event on Thursday, January 26 through Sunday, January 29, 2023: a. Motion approving blanket Temporary Obstruction Permit b. Resolution approving waiver of parking meter fees and enforcement in the Downtown District on Saturday, January 28, 2023 c. Resolution approving request from Ames Main Street for Saturday, January 28, to transfer $1,379.25 from the Local Option Sales Tax Fund to the Parking Fund 9. Resolution authorizing and approving a Loan and Disbursement Agreement and providing for the issuance and securing the payment of $4,071,000 Sewer Revenue Bonds, Series 2023A 10. Resolution authorizing and approving a Loan and Disbursement Agreement and providing for the issuance and securing the payment of $8,357,000 Taxable Sewer Revenue Bonds, Series 2023B 11. Resolution approving the appointment of Karen Tapper as the City of Ames alternate to the Story County 911 Service Board 12. Resolution approving and adopting Supplement No. 2023-1 to the Municipal Code 13. Pharmacy Benefits Manager a. Resolution waiving Purchasing Policies and Procedures for competitive bidding of professional services b. Resolution awarding contract to Arthur J. Gallagher Benefits Services in an amount not- to-exceed $110,000 14. Resolution approving staff to submit a State of Iowa Community Attraction and Tourism Grant Application in the amount of $500,000 to be used for the Fitch Family Aquatic Center 15. Resolution approving preliminary plans and specifications for Furnishing 69kV and 161kV SF6 Breakers for the Mortensen Road and Ontario Substations; setting February 1, 2023, as bid due date and February 14, 2023, as date of public hearing 16. Resolution approving Change Order No. 1 with Interstate Power Systems to provide parts for the repair of Methane Engine/Generator #2 at the Water Pollution Control Facility 17. 2019/20 Arterial Pavement Improvement – 13th Street (Wilson Avenue to Duff Avenue) a. Resolution approving Change Order No. 2 b. Resolution accepting the 2019/20 Arterial Street Pavement Improvements as completed 18. Resolution approving Change Order No. 3 for Prairie View Industrial Center Utility Extension Project 19. Resolution accepting completion of the 2021/22 Shared Use Path Maintenance - Little Bluestem Project 3 20. Resolution accepting completion of the 2020/21 Airport Improvements Program (Replace Runway 01/19 and Taxiway A North Lighting) 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. The Mayor and City Council welcome comments from the public; however, at no time is it appropriate to use profane, obscene, or slanderous language. The Mayor may limit each speaker to three minutes. POLICE: 21. Motion approving/denying renewal of Class C Liquor License – 1 Night Stand, 124 Welch Avenue 22. Motion approving/denying renewal of Class C Liquor License – Mickey’s Irish Pub, 109 Welch Avenue PLANNING AND HOUSING: 23. Ames Urban Fringe Plan Update a. Motion to direct staff to finalize the Plan and initiate a Comprehensive Plan Amendment 24. The Bluffs at Dankbar Farms, 1st Addition a. Resolution to waive improvement requirements b. Resolution to approve Minor Final Plat HEARINGS: 25. Hearing on proposed Zoning Text Amendment to amend the Home Occupation regulations (Continued from December 13, 2022): a. First passage of ordinance 26. Hearing on North Sunset Ridge Sanitary Sewer (798 N. 500th Avenue) a. Resolution accepting report of bids b. Resolution approving final plans and specifications and awarding contract to Rognes Excavating, LLC of Ames, Iowa, in the amount of $941,044.50 27. Hearing on CyRide HVAC Improvements, Phase III Project a. Motion accepting the report of no bids and directing staff to prepare to rebid the project 28. Hearing on Furman Aquatic Center Pool Basin Repainting Project a. Motion accepting the report of bids and directing staff not to award contract at this time 29. Hearing on Prairie View Industrial Area for establishment of water and sanitary sewer connection districts a. Motion to continue hearing to January 31, 2023 4 ORDINANCES: 30. Second passage of Ordinance to amend Municipal Code of the City of Ames, Iowa, by amending Chapter 28, Division 1 for the purpose of establishing a Commercial Electric Vehicle Charging Rate and Updates to Industrial Time-of-Use Rate. (Third reading and adoption of ORDINANCE NO. 4483 requested) 31. Rezoning of The Bluffs at Dankbar: a. Resolution approving Master Plan Zoning Agreement b. Third passage and adoption of ORDINANCE NO. 4486 rezoning with a Master Plan the property on the Southwest Corner of Cameron School Road and George Washington Carver Avenue from “A” (Agricultural) to “FS-RL” (Suburban Residential Low-Density) and “FS-RM” (Suburban Residential Medium-Density) 32. Third passage and adoption of ORDINANCE NO. 4484 to amend Municipal Code of the City of Ames, Iowa, by amending Chapter 12, Section 12.2 and 12.3 for the purpose of establishing election of hospital trustees, term of office and qualifications 33. Third passage and adoption of ORDINANCE NO. 4485 creating Tax Increment Financing District, Urban Renewal Area Plan for 2105 and 2421 North Dayton Avenue (small lot industrial subdivision): 34. Third passage and adoption of ORDINANCE NO. 4487 Zoning Text Amendment to allow a 20% reduction to Required Parking for Certain Commercial and Industrial Uses on Sites with more than 100 Parking Stalls: DISPOSITION OF COMMUNICATIONS TO COUNCIL: COUNCIL COMMENTS: ADJOURNMENT: Please note that this agenda may be changed up to 24 hours before the meeting time as provided by Section 21.4(2), Code of Iowa. MINUTES OF THE REGULAR MEETING OF THE AMES CITY COUNCIL AMES, IOWA DECEMBER 13, 2022 The regular meeting of the Ames City Council was called to order by Mayor John Haila at 6:00 p.m. on the 13th day of December, 2022, in the City Council Chambers in City Hall, 515 Clark Avenue, pursuant to law. Present were Council Members Bronwyn Beatty-Hansen, Gloria Betcher, Amber Corrieri, Tim Gartin, Rachel Junck, and Anita Rollins. Ex officio Member Bryce Garman was also present. GOVERNMENT FINANCE OFFICERS ASSOCIATION DISTINGUISHED BUDGET PRESENTATION AWARD FOR FY 2022/23: Mayor Haila announced the 2022-23 City of Ames Budget received the Government Finance Officers Association Distinguished Budget Award and presented it to Finance Director Corey Goodenow and Budget Officer Nancy Masteller. He noted that this award has been received for 37 consecutive years, highlighting that it is a testament to the work of the City of Ames Finance Department. CONSENT AGENDA: Council Member Gartin requested to pull Item No. 20, and Council Member Rollins shared her agreement. Mayor Haila noted that the City Council was working from an amended agenda, highlighting the change of wording for Item No. 13 and the additional item of a closed session. Moved by Betcher, seconded by Corrieri, to approve the consent agenda less Item No. 20, resolution approving changes to Smart Energy Rebate Program as proposed by City staff. 2. Motion approving payment of claims 3. Motion approving Minutes of Special Meeting on November 15, 2022, and Regular Meeting on November 22, 2022 4. Motion approving Report of Change Orders for period November 16-30, 2022 5. Motion setting the following Special City Council meeting dates: a. January 17, 2023, at 5:15 PM for CIP Work Session b. February 3, 2023, at 2:00 PM for Budget Overview c. February 7, 8, 9, and 14, 2023 at 5:15 PM for Budget Hearings and Wrap-Up 6. Motion cancelling the Regular City Council Meeting on December 27, 2022, due to the holiday closure of City Offices 7. Motion approving ownership update for Class C Beer Permit and Class B Wine Permit - Hy- Vee Fast and Fresh #1, 4018 West Lincoln Way 8. Motion approving premise update for Class E Liquor License, Class C Beer Permit, and Class B Wine Permit with Sunday Sales – Tobacco Outlet Plus, 204 S. Duff Ave 9. Motion approving the renewal of the following Beer Permits, Wine Permits, and Liquor Licenses: a. Class C Liquor License with Sunday Sales – Cyclone Liquors, 626 Lincoln Way b. Class C Liquor License with Outdoor Service and Sunday Sales – Café Beau, 2504 Lincoln Way 2 c. Class B Beer with Outdoor Service and Sunday Sales – Torrent Brewing Co LLC, 504 Burnett Avenue 10. RESOLUTION NO. 22-610 directing the City Attorney’s Office to draft an ordinance enacting the proposed changes to parking regulations in the Somerset Town Home and Row House Association Area 11. RESOLUTION NO. 22-611 to adopt the Downtown Residential Overnight Parking Hang Tag Program as a permanent part of the parking system 12. RESOLUTION NO. 22-612 approving reappointment of Council Member Amber Corrieri to the Ames Economic Development Committee (AEDC) 13. RESOLUTION NO. 22-613 approving appointment of Council Member Rachel Junck to the Ames Convention and Visitors Bureau (ACVB) with her term effective January 1, 2023, and expiring December 31, 2024, and reappointment of Council Member Gloria Betcher to the ACVB with her term effective as of January 1, 2023, and expiring December 31, 2023 14. RESOLUTION NO. 22-614 approving reappointment of Council Member Bronwyn Beatty- Hansen to the Transit Board 15. RESOLUTION NO. 22-615 approving biannual Sustainability Report by Sustainability Coordinator 16. RESOLUTION NO. 22-616 approving the Commission on the Arts (COTA) Spring 2023 Special Project Grant Contracts 17. RESOLUTION NO. 22-617 approving the Corporate Resolution designating the Finance Director, City Treasurer, and Assistant City Manager supervising the Finance Department as employees authorized to conduct financial and banking business on behalf of the City of Ames 18. RESOLUTION NO. 22-618 correcting date of Public Hearing for North Sunset Ridge to January 10, 2023, and partially rescinding Resolution No. 22-600 19. RESOLUTION NO. 22-619 approving addition of three 45-watt LED lights on 35’ bronze fiberglass street light poles at Domani Subdivision, Plat 2 to the existing Alliant Energy Electric Tariff #1 20. RESOLUTION NO. 22-620 approving changes to Smart Energy Rebate Program as proposed by City staff 21. RESOLUTION NO. 22-621 approving amendment to the tower lease agreement with Sprint Spectrum L.P. for cellular antenna equipment at Mortensen and County Line Road Water Tower (MAC Water Tower) 22. RESOLUTION NO. 22-622 approving Change Order No. 4 to the Professional Services Agreement with HDR Engineering, Inc. for additional construction phase services associated with the North River Valley Wellfield Project in the additional amount of $73,600 23. RESOLUTION NO. 22-623 approving Change Order No. 1 to Tri-City Electric Company of Iowa, Davenport, Iowa, for additional Electrical Maintenance Services Contract in the amount not to exceed $85,000 24. RESOLUTION NO. 22-624 approving Memorandum of Agreement with Iowa Department of Transportation to share its CDL skills testing site with CyRide 25. RESOLUTION NO. 22-625 setting January 10, 2023, as date of public hearing for establishment of water and sanitary sewer connection districts in the Prairie View Industrial 3 Area and directing City Attorney to prepare ordinances to establish these districts to recover City costs to install utilities as the properties are developed 26. RESOLUTION NO. 22-626 approving preliminary plans and specifications for Power Plant Maintenance Services Contract, and establish January 25, 2023, as bid due date and February 14, 2023, as date of public hearing and award of contract 27. RESOLUTION NO. 22-627 approving preliminary plans and specification for Unit 8 Electrostatic Precipitator Insulation & Lagging and establish January 25, 2023, as bid due date and February 14, 2023, as date of public hearing and award of contract 28. RESOLUTION No. 22-628 approving preliminary plans and specifications for Combustion Turbine Fuel Oil Pipe Installation and establish January 25, 2023, as bid due date and February 14, 2023, as date of public hearing and award of contract 29. RESOLUTION NO. 22-629 approving plans and specifications for 2021/22 Concrete Pavement Improvements (Stange and 24th) and setting January 18, 2023, as bid due date and January 24, 2023, as date of public hearing 30. RESOLUTION NO. 22-630 approving plans and specifications for 2022/2023 Downtown Street Pavement Improvements – Alley (5th Street-6th Street between Duff Avenue to Douglas Avenue) and setting January 18, 2023, as bid due date and January 24, 2023, as date of public hearing 31. RESOLUTION NO. 22-631 approving plans and specifications for the 2022/23 Fire Station 3 PCC Replacement and setting January 18, 2023, as bid due date and January 24, 2023, as date of public hearing 32. RESOLUTION NO. 22-632 approving plans and specifications for the 2022/23 Seal Coat Pavement Improvements and Neighborhood Curb Program Project (Murray Drive - Northwestern Avenue to Grand Avenue) and setting January 18, 2023, as bid due date and January 24, 2023, as date of public hearing 33. RESOLUTION NO. 22-633 awarding contract to Stew Hansen Dodge, Des Moines, Iowa, for one 2023 RAM ProMaster 2500 Cargo Van, on behalf of Mid-Iowa Community Action Agency (MICA) in conjunction with the CARES Round 2, in the amount of $52,920 34. RESOLUTION NO. 22-634 awarding six-month contract to Rowell Chemical Corporation, Hinsdale, Florida, in the amount of $2.27/gallon for purchase of liquid sodium hypochlorite for use at the Water Plant and Power Plant 35. RESOLUTION NO. 22-635 awarding contract to AP4 Energy Services LLC, Lakeland, Florida, for Engineering Services for Combustion Turbine Controls Upgrade in the amount of $149,670 36. RESOLUTION NO. 22-636 awarding contract to Atlas Copco Compressors LLC, Rock Hill, South Carolina, for purchase replacement 72 Instrument Air Compressor in the amount of $85,365.67 (inclusive of Iowa Sales Tax) 37. RESOLUTION NO. 22-637 awarding contract to Locality Media, Inc. of Garden City, New York, for Records Management Software for the Fire Department in the amount not to exceed $168,850 over the next five years 38. RESOLUTION NO. 22-638 awarding contract to Carrier Access IT, LC, of Clive, Iowa, for the Virtualization Environment in the amount not to exceed $424,640.27 4 39. RESOLUTION NO. 22-639 awarding contract to DNV GL USA INC of Katy, Texas, for the Asset Management Software Solution for the Electric Services Substations in the amount not to exceed $222,500.00 40. RESOLUTION NO. 22-640 accepting completion of 2021/22 Downtown Pavement Improvements – Alley (Duff to Sherman Avenue) 41. RESOLUTION NO. 22-641 accepting completion of the contract for the Ada Hayden Heritage Park Wetland Dredging Project 42. RESOLUTION NO. 22-642 approving Minor Final Plat for Compass Subdivision Plat 2 43. RESOLUTION NO. 22-643 approving Major Final Plat for Domani Subdivision, 2nd Addition Roll Call Vote: 6-0. Motion/Resolutions declared carried/adopted, signed by the Mayor, and hereby made a portion of these Minutes. CHANGES TO SMART ENERGY REBATE PROGRAM AS PROPOSED BY CITY STAFF: Council Member Gartin highlighted that this was a great moment to focus on opportunities that are moving forward under the climate action efforts. Electric Services Director Don Kom introduced the item, showcasing the key changes to the Smart Energy Rebate Program: • Add Energy Star freezers, induction stoves, and electric lawn mowers to appliance rebates • Increase air-source heat pump rebate • Increase geothermal rebate • Increase electric vehicle (EV) charger rebate • New criteria and rebate amount for Net-Zero Ready New Home Rebate Director Kom discussed the reasoning behind each change, noting the increase in rebates as an incentive to encourage desired habits and installations for broader energy efficiency practices. Moved by Gartin, seconded by Junck, to adopt RESOLUTION NO. 22-620 approving changes to Smart Energy Rebate Program as proposed by City staff. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. PUBLIC FORUM: Mayor Haila opened the Public Forum. Grant Olsen, 3812 Ontario Street, shared that as the City Council approaches the Budget Planning process for the next fiscal year, he encourages the City Council Members to consider going fare free to increase equity for the public transit system and for progress regarding climate action. Mayor Haila closed the Public Forum when no one else came forward to speak. FITCH FAMILY INDOOR AQUATIC CENTER: Parks and Recreation Director Keith Abraham introduced the item by reviewing the three parts necessary to move forward with construction of the Fitch Family Indoor Aquatic Center. He highlighted the key components of each contract presented to the City Council as highlighted in the corresponding Council Action Form and entertained questions. 5 Council Member Betcher inquired about the re-routing of the INC Fiber outlined in the Iowa Department of Transportation’s Offer to Buy for 122 North Oak Avenue. Director Abraham noted that the re-routing is expected to be complete before the site walkthrough on January 5th, 2023. Council Member Gartin asked about a second appraisal for the site due to the soil remediation for the contamination on the property. Director Abraham stated that in multiple conversations with DOT staff regarding the possibility of seeking a second appraisal, DOT staff was not willing to negotiate and would be asking compensation for the original appraisal amount. Council Member Gartin shared his distaste for the situation, noting the remediation of the contamination is being joisted on the taxpayers of Ames. He followed up by inquiring about the possibility of adding geothermal to the site. Mr. Abraham responded that City staff will continue to work with the Department of Natural Resources to determine if the site is fit for geothermal, though it is unclear at this point in time. Council Member Gartin shared that he would be voting against the Offer to Buy as there was a second site proposed just a few blocks away that was better suited for the facility and had no threat to the health and safety of the community. He noted that he will in the future vote to support the Fitch Family Aquatic Center to make it the best facility that it can be to service the generations of Ames residents. Mayor Haila requested that Director Abraham elaborate on the scope of services from RDG Planning and Design to highlight the other consultants and contractors listed. Director Abraham shared that RDG Planning and Design does not provide environmental consulting services and an outside consultant was hired by the City to render the necessary services. Mayor Haila opened and closed the Public Input when no one came forward. Moved by Betcher, seconded by Rollins, to adopt RESOLUTION NO. 22-644 authorizing submittal to the Iowa Department of Transportation of an offer to buy property located at 122 North Oak Avenue, Ames, in the amount of $2,900,000 and entering into the Mutual Benefit Sales Lease Agreement with the Iowa Department of Transportation until such time the State Land Patent for 122 North Oak Avenue is delivered to the City. Roll Call Vote: 5-1. Voting Aye: Beatty-Hansen, Betcher, Corrieri, Junck, Rollins. Voting Nay: Gartin. Resolution declared adopted, signed by the Mayor, and hereby made a portion of these Minutes. Moved by Corrieri, seconded by Beatty-Hansen, to adopt RESOLUTION NO. 22-645 awarding contract to Story Construction of Ames, Iowa, for Construction Management Services, in the amount of $1,392,229. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. Moved by Rollins, seconded by Corrieri, RESOLUTION NO. 22-646 awarding contract to RDG Planning and Design of Des Moines, Iowa, for Architectural Services in an amount not to exceed $1,783,850. 6 Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. Director Abraham reviewed the project timeline, highlighting the grand opening is anticipated for the Fall of 2025. 321 STATE AVENUE BAKER SUBDIVISION 9% LIHTC RFP REVIEW: Housing Coordinator Vanessa Baker-Latimer presented the revised Request for Proposals for the third solicitation for a partner in the development of the Baker Subdivision. She shared that the revisions had been communicated with the neighborhood and were now in front of the City Council for input and approval. She highlighted the key changes for the proposal, noting the 9% Low-Income Housing Tax Credit (LIHTC) which was selected in order to secure additional financial resources for development of affordable family housing on the site. Council Member Betcher inquired about the background of the interested contractors and their experience with Section 8 Housing. Ms. Baker-Latimer noted that the contracts had experience with Section 8 vouchers in their units, but limited experience with setting aside a set number of units for Section 8 Housing as the RFP requires. Council Member Gartin asked about the subsidy for low-income housing and inquired about the amount the City would be contributing toward each unit. Planning and Housing Director Kelly Diekmann discussed the factors for the cost per unit, informing Council Member Gartin that the number was inconclusive at this point as infrastructure costs would have to be also evaluated. Mayor Haila asked for clarification on the terms “transitional housing unit” and “permanent supportive housing.” Ms. Baker-Latimer responded by highlighting that transitional housing would be for homeless families who need a place to stay short-term during the waiting period to be placed into a permanent housing situation. She noted that it similar to but differs from permanent supporting housing where the agency would contract with the landlord for housing units. Mayor Haila opened the Public Forum. Andrew Allen, President and CEO of Youth and Shelter Services (YSS), 420 Kellogg Avenue, Ames, shared his excitement around this project and discussed the experience YSS had with similar projects, specifically in Des Moines and Mason City. He noted that the developer from the Des Moines project would be interested in submitting a proposal for the Baker Subdivision if the City Council amended the RFP because YSS would be interested in partnering on the project. Mr. Allen encouraged the City Council to amend the RFP to include permanent supportive housing at a set aside of 10%. He supported his request by noting that the age range most in need of this housing are youth who have aged out of foster care and discussed what that program looked like. Mayor Haila closed the Public Input when no one came forward to speak. 7 The City Council engaged in robust conversation regarding the request form Mr. Allen. Council Member Corrieri shared her concern about agency limitations and what that would look like. Council Member Gartin discussed meeting the needs of the community and Housing Coordinator Baker-Latimer responded by informing the City Council of funding that will be coming available to address affordable housing in the next calendar year. To conclude the discussion, the Council Members agreed to move forward with the RFP without making the amendment to include permanent supportive housing. Moved by Rollins, seconded by Betcher, to direct staff to issue a Request for Proposals (RFP) to solicit a partner developer in connection with the development of 9% Low-Income Housing Tax Credit (LIHTC) units in the Baker Subdivision. Vote on Motion: 6-0. Motion declared carried unanimously. BUDGET ISSUES/GUIDELINES: City Manager Steven Schainker shared that this is the time of year staff comes before the City Council to discuss the budget for the next fiscal year before finalizing the recommendations. He noted that the purpose of the presentation was to understand the priorities of the City Council and get direction. Finance Director Corey Goodenow presented the Fiscal Year 2023-24 City Council Budget Issues report, reviewing the overall economic condition of the City before diving into changes to the Iowa Property Tax system. Mayor Haila and City Assessor Shari Plagge shared their insight as to the changes to the property tax system and how it would affect the City of Ames. Mr. Goodenow continued the presentation of the report, highlighting issues that may impact the City Council’s budget decisions, including the projected revenues and expenditures. Council Member Betcher asked how the City Council should evaluate allocations for funding in light of the current budget situation. City Manager Schainker responded that it has always been his recommendation to be as conservative as possible and noted that staff is comfortable with the City Council allocating the recommended 5% increases for funding requests based on the available balances. Assistant City Manager Deb Schildroth presented the Human Services Funding requests for FY 2023-24 through the Analysis of Social Services Evaluation Team (ASSET). She explained that Central Iowa Community Services (CICS) continues to fund mental health and disability services separately from the ASSET process before highlighting the noteworthy agency requests for the next fiscal year, which included a new agency request from The Community Academy. She concluded by noting that the ASSET funds requested by agencies total 11.84% over the current fiscal year budgeted amount. The City Council Members participated in detailed conversation concerning Human Services to guide the decision regarding funding options. 8 Moved by Gartin, seconded by Beatty-Hansen, to approve an 8% increase to last year’s budget. Vote on motion: 3-3. Voting Aye: Beatty-Hansen, Gartin, Junck. Voting Nay: Betcher, Corrieri, Rollins. Motion failed. Moved by Corrieri, seconded by Beatty-Hansen, to approve a 6% increase from last year’s budget. Vote on Motion: 6-0. Motion declared carried unanimously. Assistant City Manager Brian Phillips announced the requests for Performing Arts Funding through the Commission on the Arts (COTA). He highlighted that requests are up by 20.5% from the previous year. He explained how the Commission utilizes funding for annual grant contracts and special project grant contracts before entertaining questions. Council Member Betcher inquired about the results of the special project grants and what that funding brought to the community. Mr. Phillips shared that organizations use special project grants to bring artists in to host a workshop or seminar, put on an additional performance or exhibition, and more. He stated that the goal of the special project grants is for the organizations to think creatively when it comes to performing arts. Moved by Betcher, seconded by Beatty-Hansen, to approve a 6% increase from last year’s budget. Vote on Motion: 5-0-1. Gartin abstained due to conflict of interest. Motion declared carried. The funding requests from Outside Organizations were presented by Assistant City Manager Brian Phillips. He stressed that this evaluation is always difficult because it is comparing very different activities across multiple different funding sources. Mr. Phillips noted that the total request for FY 2023-24 is up by 20.1% from the previous year, and summarized the requests received. Council Member Corrieri inquired if staff would be able to request additional funding information from the organizations. Mr. Phillips replied in the affirmative and Council Member Corrieri requested that more detailed funding information be solicited from Hunziker Youth Sports Complex due to the notable increase in their funding request over the current fiscal year. Assistant City Manager Phillips noted that staff would seek out that information and have it available to the City Council in February when the funding allocations are presented by staff in February of 2023. Moved by Junck, seconded by Betcher, to approve an increase of 6% on the local option sales tax option only. Vote on Motion: 5-0-1. Corrieri abstained due to conflict of interest. Motion declared carried. Assistant City Manager Phillips presented the funding request from the Public Art Commission. He noted that the Commission is not requesting an increase in funding and has maintained a healthy account balance to fund a number of projects. Council Member Betcher asked about the capacity of the Commission to continue pilot projects such as the Storm Drain Art Project and Fire Hydrant Painting Program. Mr. Phillips noted that 9 the Commission desires experience with these projects and see how the artwork withstands varying weather conditions before making further investments. He shared some of the upcoming projects the Commission has shown interest in or are currently working on, noting that if the City Council has a particular initiative, a referral can be sent to the Commission. Additionally, he noted that the Public Art Inventory has grown substantially, and the Commission is undergoing an evaluation to maintain the integrity of the current art inventory. Council Member Betcher inquired about the Small Art Grant and the Capital Arts Grant. Assistant City Manager Phillips provided a report of the status of each project, noting that he would have to look into the remaining funding for each program. City Manager Schainker highlighted other points of funding that the City Council may want to consider in the budgeting process, including facility improvements for the Animal Shelter and Fire Station No. 2. Mayor Haila recessed the meeting at 8:24 p.m. and the meeting reconvened at 8:29 p.m. HEARING ON 2022/23 ASPHALT STREET PAVEMENT IMPROVEMENTS (28TH STREET): Mayor Haila opened and closed the Public Hearing when no one came forward to speak. Moved by Gartin, seconded by Corrieri, to adopt RESOLUTION NO. 22-647 approving final plan and specifications and awarding contract to Manatt’s, Inc., Brooklyn, Iowa, in the amount of $846,926.84. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. HEARING ON PROPOSED ZONING TEXT AMENDMENT TO ALLOW A 20% REDUCTION TO REQUIRED PARKING FOR CERTAIN COMMERCIAL AND INDUSTRIAL USES ON SITES WITH MORE THAN 100 PARKING STALLS: Planning and Housing Director Kelly Diekmann noted that the text amendment was consistent with the direction from the City Council for parking. He reviewed the deductions listed in the code and clarified that the text amendment would not be applicable to special purpose districts such as the Hospital/Medical District or the Downtown Gateway. The Public Hearing was opened and closed by Mayor Haila when no one came forward to speak. Moved by Rollins, seconded by Gartin, to pass on first reading an ordinance on a Zoning Text Amendment to allow a 20% reduction to Required Parking for Certain Commercial and Industrial Uses on Sites with more than 100 Parking Stalls. Roll Call Vote: 6-0. Motion declared carried unanimously. 10 HEARING ON PROPOSED ZONING TEXT AMENDMENT TO AMEND THE HOME OCCUPATION REGULATIONS: Mayor Haila opened the Public Hearing and noted staff requested to continue the hearing to January 10th, 2023. Moved by Betcher, seconded by Gartin, to continue hearing to January 10th, 2023. Roll Call Vote: 6-0. Motion declared carried unanimously. Moved by Gartin, seconded by Rollins, to advertise the Public Hearing to alert the general public to the amendment and notify individuals with home occupations that the option to speak on the topic is available at the meeting, Vote on Motion: 6-0. Motion declared carried unanimously. HEARING ON REZONING WITH A MASTER PLAN THE PROPERTY ON THE SOUTHWEST CORNER OF CAMERON SCHOOL ROAD AND GEORGE WASHINGTON CARVER AVENUE FROM “A” (AGRICULTURAL) TO “FS-RL” (SUBURBAN RESIDENTIAL LOW-DENSITY) AND “FS-RM” (SUBURBAN RESIDENTIAL MEDIUM-DENSITY): Planner Julie Kruse presented the rezoning with Master Plan, noting that the request is to rezone the approximately 85.62 acres of the larger 105.62-acre area from Agricultural (A) to Suburban Residential Low Density (FS-RL) to Suburban Residential Medium Density (FS-RM) to accommodate the future “Bluffs at Dankbar Farms” development. The remaining 20 acres of the site would retain Agricultural zoning within the Master Plan. Ms. Kruse reviewed the street layout and infrastructure, while also highlighting the requirements for open space and natural areas within the development as well as the sanitary sewer capacity. Planner Kruse clarified that staff is recommending approval with the condition that the environmental overlay be applied, which is commonly seen for developments that are close in proximity to the Ioway Creek. Council Member Rollins inquired about commercial use within the development. Planner Kruse explained that the 20-acre area retaining the Agricultural zoning includes the Neighborhood Core designation and RN-3 designation. This area is not being rezoned at this time as the developer seeks to sell the land to a religious institution, thus commercial development is not anticipated at this time, though it is allowed within Plan 2040. Council Member Gartin asked about how taxation on the land is affected by the zoning designation. Director Diekmann responded by noting that the zoning designation does not have an effect on the taxable value of the land before explaining the walkable neighborhood model for the development per the request of Council Member Rollins. The Public Hearing was opened by Mayor Haila. Kurt Friedrich, Friedrich Land Development, 100 6th Street, Ames, shared his joy in bringing the project before the City Council after purchasing the land almost eight years prior. He thanked the Dankbar and Munch Families as well as City staff for their assistance in bringing the project to this point. He stated that the development will fill the much-needed options for both rental and 11 owner-occupied housing. Mr. Friedrich concluded by noting that the religious use on the corner of the property will be a nice anchor for the development and staff at Friedrich are excited to break ground in 2023. The Public Hearing was closed by Mayor Haila when no one else came forward to speak. Moved by Gartin, seconded by Corrieri, to pass on first reading an ordinance rezoning with a Master Plan the property on the Southwest Corner of Cameron School Road and George Washington Carver Avenue from “A” (Agricultural) to “FS-RL” (Suburban Residential Low- Density) and “FS-RM” (Suburban Residential Medium-Density). Roll Call Vote: 6-0. Motion declared carried unanimously. HEARING ON URBAN RENEWAL AREA PLAN FOR 2105 AND 2421 NORTH DAYTON AVENUE (SMALL LOT INDUSTRIAL SUBDIVISION): Mayor Haila opened and closed the Public Hearing when no one came forward to speak. Moved by Betcher, seconded by Rollins, to adopt RESOLUTION NO. 22-648 approving Urban Renewal Plan and establishing an Urban Renewal Area. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. Moved by Betcher, seconded by Corrieri, to pass on first reading an ordinance creating Tax- Increment Financing District. Roll Call Vote: 6-0. Motion declared carried unanimously. FIRST PASSAGE OF ORDINANCE TO AMEND MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING CHAPTER 28, DIVISION 1 FOR THE PURPOSE OF ESTABLISHING A COMMERCIAL ELECTRIC VEHICLE CHARGING RATE AND UPDATES TO THE INDUSTRIAL TIME-OF-USE RATE: Director Kom shared that the amendment is intended to promote off-peak charging to encourage broader adoption of electric vehicles, reduce impacts of on-peak energy demands, and capitalize on lower off-peak energy rates. He noted that off-peak charging benefits all ratepayers by selling more energy during periods that do not contribute to overall system peak. This proposed rate offers a discount in the demand cost for energy used between 9 p.m. and 9 a.m., when energy prices per kWh are lower than market energy purchased during the daylight hours. Council Member Gartin highlighted the immense benefit of this amendment for commercial customers in the community, inquiring if staff had been in conversation with potential interested parties. Director Kom stated that staff had been in communication with a number of different commercial businesses who expressed great interest, he also noted that City of Ames departments, such as CyRide, would benefit as well. The Public Input was opened and closed by Mayor Haila when no one came forward to speak. 12 Moved by Betcher, seconded by Corrieri, to pass on first reading an ordinance to amend Municipal Code of the City of Ames, Iowa, by amending Chapter 28, Division 1, for the purpose of establishing a Commercial Electric Vehicle Charging Rate and Updates to the Industrial Time-of- Use Rate. Roll Call Vote: 6-0. Motion declared carried unanimously. SECOND PASSAGE OF ORDINANCE TO AMEND MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING CHAPTER 12, SECTION 12.2 AND 12.3 FOR THE PURPOSE OF ESTABLISHING ELECTION OF HOSPITAL TRUSTEES, TERM OF OFFICE AND QUALIFICATIONS: Moved by Betcher, seconded by Rollins, to pass on second reading an ordinance to amend Municipal Code of the City of Ames, Iowa, by amending Chapter 12, Section 12.2 and 12.3, for the purpose of establishing election of hospital trustees, term of office and qualifications. Roll Call Vote: 6-0. Motion declared carried unanimously. DISPOSITION OF COMMUNICATIONS TO COUNCIL: Mayor Haila noted that there were six items to consider. The first item was an email from Chad Miller inquiring about the City Code regarding the use of snowmobiles. Moved by Gartin, seconded by Beatty-Hansen, to refer to staff for a memo. Vote on Motion: 6-0. Motion declared carried unanimously. An email from Tom Russell was the second item regarding Shared Use Path winter maintenance. Moved by Beatty-Hansen, seconded by Gartin, to refer to staff for a memo regarding shared use path winter maintenance, including written policy if available. Vote on Motion: 6-0. Motion declared carried unanimously. The third and fourth items were from Mayor Popp from the City of Gilbert and the Story County Board of Supervisors regarding the extension of the current Ames Urban Fringe Plan. Moved by Betcher, seconded by Rollins, to place the extension of the plan on the December 20th, 2022, City Council agenda. Vote on Motion: 5-1. Voting Aye: Beatty-Hansen, Betcher, Corrieri, Junck, Rollins. Voting Nay: Gartin. Motion declared carried. An email from Amelia Winfrey was the fifth item regarding bike and pedestrian safety along George Washington Carver Avenue and West 190th Street. Mayor Haila agreed to respond back to Ms. Winfrey to discuss this item as appropriate, where there is jurisdiction, and explain the Bike and Pedestrian Master Plan input process. The sixth item was a letter from Melissa McGarry, Executive Director of the Mary Greeley Foundation, regarding a request for funding for the Alternative Response for Community Health 13 (ARCH) Program. Moved by Gartin, seconded by Rollins, to direct the City Manager to explore ways to fund a portion of or all of the request in the FY 2023-24 budget. Vote on Motion: 6-0. Motion declared carried unanimously. COUNCIL COMMENTS: Council Member Beatty-Hansen shared that she received a sweatshirt from Richard Deyo this evening and expressed her gratitude. Council Member Rollins noted that she had received communication from a community member regarding front yard fencing. She wanted to open this topic for discussion, citing the climate action goals, as the limitations of the current front yar fencing standards have an adverse effect on the ability for residents to maintain vegetable garden in front of their home. The City Council Members engage in short discussion with Planning and Housing Director Diekmann. Moved by Rollins, seconded by Beatty-Hansen, to refer to staff for a memo on front yard fencing. Vote on Motion: 4-2. Voting Aye: Beatty-Hansen, Betcher, Junck, Rollins. Voting Nay: Corrieri, Gartin. Motion declared carried. Council Member Gartin extended his condolences to the family of Bill Bergan, who recently passed away. Mr. Gartin noted that Mr. Bergan had an enormous contribution to the community and was one of those people that were the glue behind the community. Council Member Betcher reiterated the thanks to the ASSET board members. She noted that she is always impressed with the work of the volunteers. She also wished all of the Iowa State students well during finals week. Mayor Haila shared that Wreaths Across America would be hosting a wreath laying ceremony at the Ames Municipal Cemetery on Saturday, December 18th, 2022, at 11:00 a.m. to honor veterans this holiday season. He invited all to attend the event. CLOSED SESSION: Mayor Haila asked City Attorney Mark Lambert if there was a legal reason to go into Closed Session. Mr. Lambert replied in the affirmative, citing Section 21.51 (1)c, Code of Iowa, to discuss items presently in or threatened to be in litigation. Moved by Gartin, seconded by Betcher, to go into Closed Session. Roll Call Vote: 6-0. Motion declared carried unanimously. The City Council entered into a Closed Session at 9:14 p.m. and reconvened in Regular Session at 9:33 p.m. ADJOURNMENT: Moved by Beatty-Hansen, seconded by Betcher, to adjourn the meeting at 9:34 p.m. Vote on Motion: 6-0. Motion declared carried unanimously. 14 __________________________________ ____________________________________ Carly M. Watson, Deputy City Clerk John A. Haila, Mayor __________________________________ Renee Hall, City Clerk MINUTES OF THE SPECIAL MEETING OF THE AMES CITY COUNCIL AMES, IOWA DECEMBER 20, 2022 The Special Meeting of the Ames City Council was called to order by Mayor John Haila at 6:00 p.m. on the 20th day of December, 2022, in the City Council Chambers in City Hall, 515 Clark Avenue, pursuant to law. Present were Council Members Gloria Betcher, Amber Corrieri, Tim Gartin, Rachel Junck, and Council Member Anita Rollins was brought in telephonically. Council Member Bronwyn Beatty-Hansen was absent. Ex officio Member Bryce Garman was absent. Council member Bronwyn Beatty-Hansen arrived at 6:01 p.m. CONSENT AGENDA: Mayor Haila noted that Consent Agenda Item Number 7 should read “Major Final Plat,” which the agenda had been corrected to reflect. Moved by Corrieri, seconded by Betcher to approve the consent agenda. 1. Motion approving new 12-Month Class E Retail Alcohol License – Casey’s #4315 – 3218 Orion Drive -Pending Favorable DIA Inspection 2. Motion approving new 12-Month Class E Retail Alcohol License – Casey’s #4314 – 1118 South Duff Avenue - Pending Favorable DIA Inspection 3. Motion approving DBA name update for Class E Liquor License, Class C Beer Permit, and Class B Wine Permit with Sunday Sales – Tobacco Outlet Plus #530 to KWIK SPIRITS #530, 204 S. Duff Ave 4. RESOLUTION NO. 22-649 approving preliminary plans and specifications for SAM Pump Station Standby Generator, setting January 25, 2023, as the bid due date and February 14, 2023, as the date of public hearing 5. RESOLUTION NO. 22-650 approving Change Order No. 3 to Sargent & Lundy LLC, Chicago, Illinois, for additional engineering services for the RDF Storage Bin Repair Project in the amount not to exceed $64,000 6. Ely’s Subdivision, 1st Addition a. RESOLUTION NO. 22-651 approving Minor Final Plat b. RESOLUTION NO. 652 approving Sidewalk Deferral Agreement 7. RESOLUTION NO. 22-653 approving Major Final Plat for Quarry Estates, 6th Addition 8. RESOLUTION NO. 22-654 approving extension of Ames Urban Fringe Plan 28E Agreement until April 30, 2023 Roll Call Vote: 6-0. Motion/Resolutions declared carried/adopted, signed by the Mayor, and hereby made a portion of these Minutes. WORKSHOP ON WASTE-TO-ENERGY OPTIONS STUDY: Bill Schmitt, Superintendent of the Resource Recovery Plant (RRP), opened the presentation with an overview of the history of the City of Ames’ current Waste-To-Energy system, which has been in place since 1975. He outlined that the current system being referenced included the RRP, the Storage and Holding Bin, and the Power Plant. He stated the purpose of the study was to examine the current system and how it may be improved with new technologies as well as look to planning for the next 20 years 2 with a forward-thinking approach. Superintendent Schmitt introduced the firm who produced the report, RRT Design and Construction (RRT). Mr. Schmitt noted there were five options RRT had originally been contracted to evaluate, as well as two sub-options that came to light through the study that the team preparing the evaluation felt were good options to explore and consider. Brett Wolfe and John Sasso, of RRT, presented on the Waste-To-Energy Options they had been commissioned to explore on behalf of the City of Ames. Mr. Wolfe opened the presentation by thanking the City for the opportunity to present their findings and noted the extensive experience working with municipalities and qualifications of the RRT team who worked on the project. He noted that while this was a technical study, the financial aspect of the study was a key aspect to evaluate with each option and would be presented alongside the technical information. Mr. Wolfe also credited Capital Market Advisors as the subconsultant who worked with the RRT team to provide the financial modeling included in the presentation. City staff were also credited as being a key component of the team. Council Member Gartin inquired about RRT’s experience with Refuse-Derived Fuel (RDF) and plants similar to the City of Ames’. Mr. Wolfe highlighted projects RRT had worked with previously, that are similar to the current system the City has, but noted there was a size difference. Mr. Wolfe cited the Request for Proposal (RFP) when outlining the goal of the study: the purpose of the study was to evaluate credible options for disposing Municipal Solid Waste (MSW) in a waste-to-energy system that could satisfy the county’s solid waste disposal needs for 2023 and beyond. He also noted that priorities to consider were population growth, environmental stewardship, landfill avoidance with increasing tonnage, reducing reliance on natural gas, and reducing greenhouse gas (GHG) impact. These priorities led to the evaluation of five Waste-To- Energy options and two sub-options, as well as the technical and financial study. Mr. Wolfe noted RRT had made no recommendations in the study or report and would not be making any. He noted RRT’s role was to provide options for City Council’s consideration but not to endorse any. Mr. Wolfe further examined the capabilities of the current system. He noted the RRP currently handles 52,000 Tons Per Year (TPY) of MSW, which is then converted to RDF to be used by the Power Plant (PP) to create electricity. The RRP is utilized by 12 cities in Story County, the County itself, and Iowa State University. The PP handles 32,000 TPY of RDF and serves 28,000 metered customers. Mr. Wolfe noted that by law, 30 percent of RDF must be co-fired with 70 percent natural gas by weight, which is costly both financially and environmentally. He also highlighted that the PP is the provider of about 40 percent of Ames electric energy supply. Council Member Gartin inquired if the City Council needed to operate with the understanding that the co-fired variable was needed when the Council was considering options. Mr. Sasso clarified the air permit was designated to be co-fired with coal when the RRP became operational. Due to this, the boilers were designed with that requirement in mind, which meant the boilers could not be altered to run on 100 percent RDF. Gartin clarified this led to physical constraints in the system that limited options and were binding outside of the permit requirements. 3 Mr. Wolfe then summarized the current system challenges facing the city. He noted that currently, approximately 2,700 TPY of MSW must be directed to the landfill due to Waste-to-Energy (WTE) capacity limitations and that this number would grow to 17,000 TPY by 2044 if 1.1. percent growth rate is realized. Another factor highlighted by Mr. Wolfe was the requirement to burn natural gas as a large contributor to GHG emissions. He noted the availability of other market energies that had both lower costs and lower GHG emissions and noted that MISO requires the City to have the capacity to meet 110% of the City’s historic electric demand. Mr. Wolfe explained the RRP process has the capacity to divert 3,800 TPY of waste from the landfill. He also noted the Waste-to-Energy approach is preferred by the Environmental Protection Agency over sending waste to a landfill. Energy through the PP was the next aspect Mr. Wolfe focused on. He highlighted the two RDF boilers located at the PP produce electricity at the price of $56/MW. The rest of the city’s electric needs are met from other areas of the grid such as wind, solar, or fossil generation, at prices of $30/MW during peak time, and $17/MW on off-peak times. Mr. Wolfe went on to explain that of the five options being presented for Council’s consideration, one was the base case, which was what would happen if the City did not take action and continued operations as they are now. He then turned the floor over to his colleague, John Sasso to explain the five options and two sub-options that RRT was asked to evaluate. Mr. Sasso listed the five options and two sub-options given to RRT to evaluate: 1. Utilize the existing Resource Recovery and Power Plant as is (Base Case used for comparison) 2A. Utilize the existing Resource Recovery Plant and construct a new dedicated refuse-derived fuel (RDF) unit at the Power Plant with Unit 8 serving as a backup unit 2B. Modify the Resource Recovery Plant to produce larger, 20” RDF, (currently 4”) and construct two new dedicated RDF units at the Power Plant (does not rely on Unit 8 as a backup) 3A-1. Construct a new Resource Recovery Plant at the Coal Yard, and construct a new dedicated refuse-derived fuel (RDF) unit at the Power Plant with Unit 8 serving as a backup unit 3A-2. Construct a new Resource Recovery Plant and construct two new dedicated RDF units producing steam to an industrial host at a new greenfield site 3B-1. Construct two new MSW mass burn units (no pre-processing) at the Coal Yard site 3B-2. Construct two new MSW mass burn units (no pre-processing) producing steam to an industrial host at a new greenfield site. 4 Mr. Sasso stated that for all options listed, excluding options 3A-2 and 3B-2, the new units would contribute 6 MW of additional capacity compared to the base case of how the City had operated up to that point. He also directed those interested to Table 3 and Table 4, included in the report and Council Summary packet, for a simplified version of the information about to be presented. While discussing the base case, Mr. Sasso noted that current MSW levels exceed the capacity of the current system by at least 6 percent. Mr. Sasso noted that base case allowed for 53 percent of MSW to be diverted from the landfill. He further clarified for Council Members that this was due in some cases to the type of material, and in other cases the MSW sent to the landfill was due to exceeding the capacity the current WTE system is equipped to handle. Mr. Wolfe noted that of the current MSW that is sent to the landfill, added capacity would divert another 2,700 TPY. If the base case is continued, the projection for that number in 2044 is 17,000 TPY. Mayor Haila inquired of the RRT team their perspective on the amount of MSW being processed at the RRP. Mayor Haila noted 2,700 TPY of the MSW being taken in is diverted to the landfill. Mr. Wolfe noted that the RRP is not burning to its full potential, and this problem becomes exacerbated further in the future with increased projected intake. Superintendent Schmitt further answered Mayor Haila’s inquiry by clarifying that currently the RRP is operating two shifts five days a week, there is additional processing capacity available. He furthered that the choke point of the system is that not all that RDF is able to be combusted as Units 7 and 8 are not able to burn at the same time. Another constraint noted by Superintendent Schmitt is at the RRP only about 45-50 hours of the 80-hour work week are used for processing, while the remaining hours are used for maintenance. He stated that with more shifts and other accommodations the RRP would be able to handle the volume of MSW coming in. Council engaged in robust conversations about what this meant for the future of the RRP. City Manager Steve Schainker clarified for City Council that the processing of the material is not necessarily the choke point, but the ability to burn the RDF is, and this has led to the need to evaluate new systems to handle the burning. Council Members then asked more clarifying questions of the current system to have a fuller understanding of how to approach the other options put forth by the RRT report. Mr. Sasso continued through the rest of the options, noting pros and cons for each. For each option presented, he also evaluated the capital costs, operational and maintenance costs, environmental impacts and permitting, externalities (such as truck traffic, odor, and noise), and the timeline to design and construct. Additionally, the consultant was asked to identify the impacts of each option on the existing diversion programs (glass and food waste). Under Option 2A Mr. Sasso answered Council Member Gartin’s question of how the new system would address the need for processing by explaining this option would eliminate the bottleneck on the energy side by allowing for increased burning of RDF. Mr. Wolfe furthered this option allows the City to accommodate the anticipated increase in MSW through the end of time period of the 5 study, 2044. Council Members then engaged in thorough conversation about how the needs and constraints of the existing system would be affected by this option. Council Member Betcher questioned the valuation of rejects and ash being sent to the landfill, which Mr. Sasso answered by stating ash was preferable between the two as it had no GHG emissions. He also noted air pollution control on the new units would capture pollutants up to EPA standards. Conversation around Option 2A established the understanding that all options presented, excluding the base case, were designed to meet the projected capacity needs of the City of Ames, and considered all current input sources. Mr. Wolfe addressed Mayor Haila’s question about odor by noting that raw MSW is what gives off odor usually, not the burning of it. Council Member Betcher noted Table 3 showed this option overall reduced the amount of leftovers from the process and inquired why that was. Mr. Sasso noted this was due to the increased ability to burn more MSW under this option as the proposed boiler could handle more waste. Options 3A-1 and 3A-2 called for a new state of the art RRP, one with the option to keep Unit 8, and one with a potential customer for steam produced from the plant. The current RRP would potentially be repurposed as it would no longer be utilized in the WTE process. Option 3B-1 and 3B-2 both utilized mass burn technology, which Mr. Sasso noted is the most common system being used today. Mr. Sasso furthered that air pollution control technology for a RDF boiler and a mass burn boiler is the same, so the emissions would be on par with each other. An additional benefit was the increased throughput, as almost everything was being burned which leads to less going to the landfill. Robust conversation around the pros and cons of having a steam partner to potentially sell generated steam ensued from these options and the risks and benefits that would result. Council Member Beatty-Hansen asked for more clarification of how these options would handle recycling metal. Mr. Sasso clarified these options also came with recommendations to continue pulling metal out of the system at the front end to be recycled. Discussion then moved to the ramifications of each option on GHG emissions. Mr. Sasso noted all options besides the base case are projected to result in a greater than 40 percent reduction in GHG, as all options reduce the City’s need for natural gas. He further discussed how this could potentially support the City’s goal of reducing GHG by 83 percent. Electrical Services Director Donald Kom came forward to clarify how these projections tied to the City’s current efforts and the implications it had for C02 levels in the future. Director Kom referred back to the Climate Action Plan as he stated WTE makes up 12 percent of the 83 percent reduction the City hopes to make in GHG emissions. Further conversation around the GHG value of WTE followed. Mr. Sasso presented on the financial models that had been developed for this report. He noted factors that were considered included average annual costs, Net Present Value (NPV), and Internal Rate of Return (IRR). It was also stated that for the study, the base case was run as an option that could not go negative anytime during the 20-year evaluation period of the study. As further financial tables were evaluated, conversation around the fluxuating costs of natural gas and the possibility of steam revenue surfaced. 6 Director Kom came forward to explain how to think of these options in correlation to the continued need to provide power to the City’s citizens as well, noting that none of the options resulted in the City giving up any capacity to meet electrical demands. He also answered questions related to the financial obligation of producing power with natural gas versus purchasing it from MISO. Council Members and presenter Mr. Sasso engaged in robust discussion around the importance of natural gas prices to each option for both costs to customers and GHG emissions, before he took questions about further financial implications. Mr. Wolfe noted that permitting is a very nuanced process that was hard to talk about without a selection having been made, however he noted that Title V Air Permit would be required by the State of Iowa DNR regardless of which option is selected. Power Plant Manager Curtis Spence came forward to answer Council Member Betcher’s question about the possibility to increase capacity for ash disposal. He noted the current model is not used for incineration as ash is different and will be hauled to the landfill, regardless of which option is selected. One of the additional items in the RFP was to evaluate against current City programs and programs that may come forward in the future, Mr. Wolfe noted for the Council that WTE does not impede recycling. He also noted that the organics diversion program improves combustion, and explained they are complementary of each other. Mr. Wolfe also expressed support for further education opportunities for Ames residents to get stakeholders positively involved in whichever option was chosen to move forward. Council Member Gartin expressed his belief that it was time to have community conversations around program values and Council Member Betcher further questioned the importance of what it would look like for the City to run its WTE program potentially without the staple of the RRP. Mr. Wolfe went over the potential schedule for a typical product of this size, with over $100 million in capital, noting RRT’s estimate it would be six years from the time an engineer was selected to pursue an agreed-upon option. He noted the permit process was not included in this estimate but would want to be pursued before construction and commissioning. Assistant City Manager Brian Phillips noted for the City Council there was two main components to be considered in terms of evaluating the future feasibility of the status quo. He listed these as to what extent the City is able to make improvements to the WTE process, and what the cost of natural gas will be. Mr. Phillips reiterated to City Council that the higher the cost of natural gas the less favorable the City’s current situation is. Director Kom noted an additional consideration is that Boone County Landfill has stated they do not want anymore of the City’s trash, so the sooner action is taken, the better. City Manager Steven Schainker expressed something has to change in our current system to make it more accessible for people to recycle, compost, and participate in other waste diversion programs. He noted the importance of not giving up on these efforts on the front end of the process to reduce the amount of waste that needed to be processed. Assistant City Manager Phillips 7 presented a financing scenario based on the lowest cost option, which was 2A. He noted options for financing through garbage fees, property taxes, and electric services and the implications each of those options would have on Ames residents. City Manager Schainker noted revenue bonds would have to be used and would likely be done through electric utility. He also noted the importance of presenting all information to customers in a way they can understand the value of the action. Director Kom then introduced the team that had been working with RRT to develop this plan. He noted Assistant City Manager Brian Phillips, Public Works Director John Joiner, RRP Superintendent Bill Schmitt, Power Plant Manager Curtis Spence, and former Electric employee Brian Trower all played key roles in the development of the plan. Director Kom then stated Curtis Spence and Electric Engineer Kristin Evans, with others in the PP, believe it may be possible to move Combustion Turbine #2 near the current PP, construct a waste-to-energy boiler and steam generator as envisioned in Option 2A, and use the exhaust gas heat from Combustion Turbine #2 to generate additional steam and produce more electricity. He furthered that staff is requesting that the engineering firm Sargent & Lundy, LLC, Chicago, Illinois be retained to provide an evaluation of this Combustion Turbine #2 Heat Recovery Steam Generator Concept. This evaluation is expected to take four months. Savings in the amount of $86,267 are available from the WTE study and the Power Plant Wastewater Treatment CIP projects for this project. Power Plant Manager Spence noted this allows for both a capacity increase and the ability for the City to independently operate these systems and that theoretically this could be used in addition to any of the options previously presented. Another possibility discussed by Director Kom that came forward as a result of the study was the possibility of selling steam to an interested outside party. Through preliminary discussions, Lincolnway Energy, whose host is Alliant, had emerged as a possible partner in building a new WTE facility near its plant in Nevada, as Lincolnway Energy uses a substantial amount of steam in its process to manufacture ethanol. Director Kom further explained if this potential partnership was pursued, a variety of details would need to be further discussed with Lincolnway Energy (and Alliant Energy, which is the electric and natural gas provider in that area), such as the ownership and operating responsibility for the equipment, the source of the waste material to be converted, and the extent of the City’s involvement in the overall system. Staff would like to hold further discussions with Lincolnway Energy before the City Council takes final action regarding a preferred option. Staff would then return to the City Council at a future date with a more detailed analysis of the advantages and disadvantages of a partnership option. Director Kom noted he was not making a request to spend any funds, but rather he sought permission to continue these conversations. PRESENTATION ON WASTE-TO-ENERGY MASTER PLAN a. Motion accepting the Waste-to-Energy Options Study Final Report 8 b. RESOULTION NO. 22-655 approving contract with Sargent & Lundy, LLC, Chicago, Illinois, evaluating the feasibility of a Combustion Turbine #2 Heat Recovery Steam Generator Concept in the amount not to exceed $69,500 c. Motion authorizing staff to continue discussions with Lincolnway Energy regarding the feasibility of a partnership to develop a waste-to-energy facility Moved by Betcher, seconded by Corrieri Approving Alternative 1A, 1B, and 1C. Roll Call Vote: 6-0. Motion declared carried unanimously. URBAN RENEWAL AREA PLAN FOR 2105 AND 2421 NORTH DAYTON AVENUE (SMALL LOT INDUSTRIAL SUBDIVISION): Moved by Beatty-Hansen, seconded by Corrieri, to pass on second reading an ordinance passage of ordinance creating Tax-Increment Financing District. Roll Call Vote: 6-0. Motion declared carried unanimously. REZONING WITH A MASTER PLAN THE PROPERTY ON THE SOUTHWEST CORNER OF CAMERON SCHOOL ROAD AND GEORGE WASHINGTON CARVER AVENUE FROM “A” (AGRICULTURAL) TO “FS-RL” (SUBURBAN RESIDENTIAL LOW-DENSITY) AND “FS-RM” (SUBURBAN RESIDENTIAL MEDIUM-DENSITY): Moved by Betcher, seconded by Corrieri to pass on second reading an ordinance Rezoning with a Master Plan the property on the Southwest Corner of Cameron School Road and George Washington Carver Avenue from “A” (Agricultural) to “FS-RL” (Suburban Residential Low- Density) and “FS-RM” (Suburban Residential Medium-Density). Roll Call Vote: 6-0. Motion declared carried unanimously. ZONING TEXT AMENDMENT TO ALLOW A 20% REDUCTION TO REQUIRED PARKING FOR CERTAIN COMMERCIAL AND INDUSTRIAL USES ON SITES WITH MORE THAN 100 PARKING STALLS: Moved by Beatty-Hansen, seconded by Junck, to pass on second reading an ordinance for Zoning Text Amendment to allow a 20% reduction to Required Parking for Certain Commercial and Industrial Uses on Sites with more than 100 Parking Stalls. Roll Call Vote: 6-0. Motion declared carried unanimously. DISPOSITION OF COMMUNICATIONS TO COUNCIL: Mayor Haila noted that there were four items to consider. The first item was an email from Lisa Kuehl, regarding informational notification pertaining to the University of Northern Iowa’s “Good Neighbor Iowa” Program. Mayor Haila stated that this item was for information only and no action was required. The second item was a letter from the State Historic Preservation Office of Iowa, National Register of Historic Places, regarding Nomination of the Cranford Apartment Building to the National Register of Historic Places. Mayor Haila stated that this item was for information only and no action was required. 9 The third was an email from Grant Thompson, regarding Front Yard Fencing – Consideration for Vegetable Gardens. It was noted this had been referred at last meeting and was for informational purposes only. The fourth item was a letter from Jerry Nelson, of Onondaga Investments, regarding Zoning Code relating to Non-Conforming Structures. Moved by Betcher, seconded by Junck to direct to staff for a memo. Vote on Motion: 6-0. Motion declared carried unanimously. COUNCIL COMMENTS: Council Member Betcher noted that it is exciting that Cranford Apartment Building will be potentially listed as a Historical site. She noted it was a housing site for women who were in engineering and mathematics who were teaching at Iowa State University. She then wished everyone a safe and happy holiday season. Council Member Gartin expressed his appreciation for staff clearing the snow, providing services, and doing tasks that need to be done even in inclement weather. Council Member Rollins echoed what had already been said and wished everyone a happy holiday. City Manager Steve Schainker noted the City of Ames was being proactive and hoped no one would experience an emergency at their home. He noted the City had begun work with the Red Cross to be prepared to open local shelters if needed. He furthered that the Police and Fire Departments have been working on logistics for helping people in need. Mayor Haila shared the Wreaths Across America event at Ames Municipal Cemetery raised enough money to place wreaths on 1,800 graves. He noted the Boy Scouts, including his grandson, were out laying wreaths and credited the event as a very moving ceremony honoring veterans. He shared the organizations goal next year is to raise enough for graves in the Ontario Cemetery as well. Mayor Haila wished everyone a happy holiday. ADJOURNMENT: Moved by Betcher, seconded by Junck to adjourn the meeting at 8:30 p.m. Vote on Motion: 6-0. Motion declared carried unanimously. 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 2021/22 Collector Street Pavement Improvements (Hoover Ave) 1 $2,185,487.58 Manatts, Inc $0.00 $22,136.00 T. Peterson KS Electric Services Pad Mounted Transformers 3 $175,374.99 RESCO $1,297.69 $405.21 D. Kom ElelcEle $ $ $ $ $ $ $ $ $ $ $ $ Period: 1st – 15th 16th – End of Month Month & Year: December 2022 For City Council Date: January 10, 2022 Item No. 4a 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 South 16th Street Improvements (S. 16th / Grand 1 $4,085,830.80 Con Struct, Inc. $0.00 $7,454.30 J. Joiner KS Public Works 2021/22 Concrete Pavement Improvements (S Kellogg Avenue & N 2nd Street) 1 $967,416.31 All Star Concrete, LLC $0.00 $-(150.86) J. Joiner KS Fleet/ Parks & Recreation Ames Downtown Plaza Project 3 $4,333,000.00 Henkel Construction Company $-(156,897.40) $6,983.79 C. Mellies KS Transit 60 Foot Articulated Bus 1 $$850,000.00 Nova Bus Inc $0.00 $-(48,817.00) D. Schildroth QE $ $ $ $ $ $ Period: 1st – 15th 16th – End of Month Month & Year: December 2022 For City Council Date: January 10, 2023 Item No. 4b Caring People  Quality Programs  Exceptional Service Item No. 5 MEMO TO: Members of the City Council FROM: John A. Haila, Mayor DATE: January 10, 2023 SUBJECT: Setting Special City Council Meeting Dates The review of updates to the City Council’s goals requires more time than is afforded by Regular City Council Meetings. A Special City Council Meeting is needed. Therefore, I recommend that the Council set January 28, 2023, as a Special City Council Goal Update Session. JAH/jsn Mayor’s Office 515.239.5105 main 515 Clark Ave. 515.239.5142 fax Ames, IA 50010 www.CityofAmes.org Page 1 of 3 Applicant NAME OF LEGAL ENTITY Hy-Vee, Inc. NAME OF BUSINESS(DBA) Hy-Vee Market Cafe BUSINESS (515) 267-2949 ADDRESS OF PREMISES 3800 Lincoln Way Cafe Area PREMISES SUITE/APT NUMBER CITY Ames COUNTY Story ZIP 50014 MAILING ADDRESS 5820 Westown Pkwy CITY West Des Moines STATE Iowa ZIP 50266 Contact Person NAME Kelly Palmer PHONE (515) 267-2800 EMAIL kpalmer@hy-vee.com License Information LICENSE NUMBER LC0041487 LICENSE/PERMIT TYPE Class C Retail Alcohol License TERM 12 Month STATUS Submitted to Local Authority EFFECTIVE DATE Feb 24, 2022 EXPIRATION DATE Feb 23, 2023 LAST DAY OF BUSINESS SUB-PERMITS Class C Retail Alcohol License Item No. 6 Page 2 of 3 PRIVILEGES Catering Status of Business BUSINESS TYPE Corporation Ownership Individual Owners NAME CITY STATE ZIP POSITION % OF OWNERSHIP U.S. CITIZEN Andrew Schroeder Johnston Iowa 50131 Vice President, Accounting 0.00 Yes Michael Jurgens Des Moines Iowa 50312 Vice President, Secretary 0.00 Yes Jeremy Gosch Urbandale Iowa 50323 CEO, President 0.00 Yes Insurance Company Information INSURANCE COMPANY EMPLOYERS MUTUAL CASUALTY COMPANY POLICY EFFECTIVE DATE POLICY EXPIRATION DATE DRAM CANCEL DATE OUTDOOR SERVICE EFFECTIVE DATE OUTDOOR SERVICE EXPIRATION DATE Page 3 of 3 BOND EFFECTIVE DATE TEMP TRANSFER EFFECTIVE DATE TEMP TRANSFER EXPIRATION DATE Smart Choice non-emergency Administration fax To: Mayor John Haila and Ames City Council Members From: Lieutenant Heath Ropp, Ames Police Department Date: December 22, 2022 Subject: Beer Permits & Liquor License Renewal Reference City Council Agenda The Council agenda for January 10th, 2023, includes beer permits and liquor license renewals for: • Chipotle Mexican Grill (435 A. Duff Ave) - Class C Liquor License with Outdoor Service and Sunday Sales • Fuji Japanese Steakhouse (1614 S. Kellogg Ave 101) - Class C Liquor with Sunday Sales • American Legion Post #37 (225 Main St) - Class A Liquor License with Sunday Sales • Springhill Suites (1810 SE 16th St) - Special Class C Liquor License with Sunday Sales • The Filling Station (2400 University Blvd) - Class E Liquor License with Class B Wine Permit, Class C Beer Permit (Carryout Beer), and Sunday Sales • Clouds Coffee (119 Stanton Ave Ste 701) - Special Class C Liquor License (B/W) • The Angry Irishmen (119 Main St) - Class C Liquor License with Outdoor Service and Sunday Sales • Hy-Vee Market Café (3800 Lincoln Way) - Class C Liquor License with Catering Privilege and Sunday Sales A review of police records for the past 12 months found no liquor law violations for the above locations. The Ames Police Department recommends the license renewal for the above businesses. Smart Choice non-emergency Administration fax To: Mayor John Haila and Ames City Council Members From: Lieutenant Heath Ropp, Ames Police Department Date: December 22, 2022 Subject: Beer Permits & Liquor License Renewal Reference City Council Agenda The Council agenda for January 10th, 2023, includes beer permits and liquor license renewals for: • Dublin Bay (320 S 16th) - Class C Liquor with Catering Privilege, Outdoor Service, and Sunday Sales A review of police records for the past 12 months found 1 liquor law violation. During a compliance check on March 10th, 2022, an employee sold alcohol to a minor and was cited accordingly. The Police Department will continue to monitor the above location by conducting regular foot patrols, bar checks and by educating bar staff through training. The Ames Police Department recommends license renewal for the above business. 1 COUNCIL ACTION FORM SUBJECT: REQUESTS FROM AMES MAIN STREET FOR JANUARY DOLLAR DAYS BACKGROUND: Ames Main Street (AMS) is planning to host its annual dollar days from Thursday, January 26 through Sunday, January 29, 2023. To facilitate this event, AMS is requesting a waiver of parking fees and enforcement in the Downtown on Saturday, January 28, 2023. Fulfilling this request and providing free parking for 613 metered parking spaces yields an estimated loss of $1,379.25 to the Parking Fund. Funds from the Local Option Sales Tax Fund have been placed in the FY 2022/23 City Budget to reimburse the Parking Fund for this event. In addition, AMS requests a blanket Temporary Obstruction Permit for January 28. The requests are detailed in the attached letter. ALTERNATIVES: 1. Approve the requests from Ames Main Street for Saturday, January 28, as outlined above, including a transfer of $1,379.25 from the Local Option Sales Tax Fund to the Parking Fund. 2. Do not approve the request. CITY MANAGER'S RECOMMENDED ACTION: Ames Main Street sidewalk sales have been successful in bringing shoppers to the Downtown area. Sufficient funding exists in the City Budget to reimburse the Parking Fund for the lost revenue for the free parking request. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as described above. ITEM # 8 DATE 01-10-23 DEPT Admin. ITEM#: 9 DATE: 01-10-23 DEPT: FIN COUNCIL ACTION FORM SUBJECT: RESOLUTION AUTHORIZING AND APPROVING A LOAN DISBURSEMENT AGREEMENT AND PROVIDING FOR THE ISSUANCE AND SECURING THE PAYMENT OF $4,071,000 OF SEWER REVENUE BONDS, SERIES 2023A BACKGROUND: The City’s Capital Improvement Plan includes a program for rehabilitation/reconstruction of deficient sanitary sewers and deteriorated manholes at various locations throughout the City. A State Revolving Fund (SRF) Clean Water Loan in the amount of $4,071,000 was identified as the funding source for the sanitary sewer system improvements which include rehabilitation of approximately 7,700 linear feet of sanitary sewer near Ames High School and Veenker Golf Course. A public hearing was held on November 22, 2022, and a Council resolution is now necessary to enter into the agreement to receive the requested funding for this FY 2022/23 project. The SRF program provides competitive interest rates to support publicly financed water and sewer projects. This resolution authorizes and approves the issuance of the bonds and disbursement agreement with a 20-year term and an interest rate of 1.75%. The agreement also includes a 0.25% annual servicing fee and a one-time initiation fee of 0.5%. The annual debt service varies over the course of the bond repayment schedule, but once fully amortized will result in annual debt service payments of approximately $260,000. Funding for the annual debt service payments will be included in the Sanitary Sewer Utility’s annual budget. ALTERNATIVES: 1. Approve the State Revolving Fund Clean Water Loan agreement in an amount not to exceed $4,071,000. 2. Do not approve the loan agreement and direct City staff to identify other sources to fund the project. CITY MANAGER’S RECOMMENDED ACTION: Approval of this loan agreement will ensure that funding is available to carry out the sanitary sewer system improvements as previously approved by Council. Therefore, it is the recommendation of the City Manager that the City Council approve Alternative No. 1 as described above. ITEM#: 10 DATE: 01-10-23 DEPT: FIN COUNCIL ACTION FORM SUBJECT: RESOLUTION AUTHORIZING AND APPROVING A LOAN DISBURSEMENT AGREEMENT AND PROVIDING FOR THE ISSUANCE AND SECURING THE PAYMENT OF $8,357,000 OF SEWER REVENUE BONDS, SERIES 2023B BACKGROUND: The City’s Capital Improvement Plan includes a program for the rehabilitation and reconstruction of deficient sanitary sewers and deteriorated manholes at various locations throughout the City. A State Revolving Fund (SRF) Clean Water Loan in the amount of $8,357,000 was identified as the funding source for the sanitary sewer collection system improvements included in the FY 2018/19 and FY 2019/20 capital budgets. A public hearing was held on November 22, 2022, and a Council resolution is now necessary to enter into the agreement to receive the requested funding for these projects. The SRF program provides competitive interest rates to support publicly financed water and sewer projects. This resolution authorizes and approves the issuance of the bonds and disbursement agreement with a 20-year term and an interest rate of 2.75%. The agreement also includes a 0.25% annual servicing fee and a one-time initiation fee of 0.5%. The annual debt service varies over the course of the bond repayment schedule, but once fully amortized will result in annual debt service payments of approximate ly $583,000. Due to the timing of the debt issuance, this bond series will be issued as taxable and the rate will be 2.75% versus the 1.75% for the FY 2022/23 project. Funding for the annual debt service payments will be included in the Sanitary Sewer Utility’s annual budget. ALTERNATIVES: 1. Approve the State Revolving Fund Clean Water Loan agreemen t in an amount not to exceed $8,357,000. 2. Do not approve the loan agreement and direct City staff to identify other sources to fund the project. CITY MANAGER’S RECOMMENDED ACTION: Approval of this loan agreement will ensure that funding is available to carry out the sanitary sewer system improvements as previously approved by Council. Therefore, it is the recommendation of the City Manager that the City Council approve Alternative No. 1 as described above. ITEM#: 11 DATE: 1-10-23 DEPT: Fire COUNCIL ACTION FORM SUBJECT: REPRESENTATION ON STORY COUNTY 911 SERVICE BOARD BACKGROUND: The Story County 911 Service Board supports 911 emergency communications services in Ames and throughout Story County. The Board receives, administers, and disperses the 911 surcharge that is levied on all wireline and wireless phones. The Board provides support to Ames by subsidizing a variety of emergency response costs including telephone trunk lines, radio subscriber fees, and the purchase of emergency communications equipment in the Ames Communications Center. The City has two voting members on the Board, representing: 1) the City as a whole, and 2) the Chief of Police (as the director of the communications center). Each voting member has a designated alternate. The current members are: For the City of Ames: Member – Tom Hackett, Fire Department Deputy Chief Alternate – Doug Allen, Fire Department Deputy Chief For the Chief of Police: Member – Geoff Huff, Chief of Police Alternate – Aaron DeLashmutt, Police Department Support Services Manager Deputy Fire Chief Doug Allen retired from the City effective January 7, 2022. Karen Tapper was promoted to Deputy Fire Chief to succeed him. City staff is requesting to appoint Deputy Chief Tapper as the alternate member to the Board. ALTERNATIVES: 1. Approve the appointment of Karen Tapper as the City of Ames alternate to the Story County 911 Service Board, replacing Doug Allen. 2. Do not approve the appointment and direct staff to recommend another appointee. CITY MANAGER’S RECOMMENDED ACTION: The Story County 911 Service Board continues to provide professional and financial resources to the City to support emergency response activities. It is important to maintain representation on this Board. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as described above. RESOLUTION NO. ______ RESOLUTION APPROVING AND ADOPTING SUPPLEMENT NO. 2023-1 TO THE AMES MUNICIPAL CODE BE IT RESOLVED, by the City Council for the City of Ames, Iowa, that in accordance with the provisions of Section 380.8 Code of Iowa, a compilation of ordinances and amendments enacted subsequent to the adoption of the Ames Municipal Code shall be and the same is hereby approved and adopted, under date of January 1, 2023, as Supplement No. 2023-1 to the Ames Municipal Code. Adopted this day of , 2023. ___________________________ John A. Haila, Mayor Attest: _______________________________ Renee Hall, City Clerk Item No. 12 1 ITEM#: 13 DATE: 01-10-23 DEPT: HR COUNCIL ACTION FORM SUBJECT: AWARD OF CONTRACT FOR PHARMACY BENEFIT MANAGER SELECTION PROCESS BACKGROUND: The City has contracted with Wellmark Blue Cross and Blue Shield to provide health insurance services for many years. Included in the health insurance contract are pharmacy benefits. Pharmacy costs have represented approximately 19% of the overall health insurance budget in the last several years, with notable exceptions occurring in FY 2020/21 and FY 2021/22 – largely due to the COVID-19 pandemic. These pharmacy costs are projected to increase to 22% (~$2.5M) of the overall health insurance budget in the next fiscal year. Within the existing contract with Wellmark, it is possible to carve out pharmacy benefit management as a separate insurance plan. Pharmacy benefits could then be administered by a pharmacy benefits manager selected through a competitive process , who would negotiate pricing with retailers, establish the formulary (including the “tiers” of drugs placed at different co-pay points), and administer policies such as quantity limitations and step therapy (requirements to try a certain number of lower cost drugs before authorizing coverage for a higher-cost non-preferred drug). Staff believes a competitive process has the potential to produce substantial cost savings compared to the current pharmacy services that are bundled with Wellmark’s insurance program. Given the potential for a small percentage reduction in pharmacy cost resulting in a substantial dollar savings, staff would like to take the steps to initiate that competitive bid process. The bidding process to select a Pharmacy Benefits Manager (PBM) is a significant and complex undertaking that staff feels would be best administered by subject matter experts. Arthur J. Gallagher Benefits Services (Gallagher) has worked with the City for the last six years as its benefits consultants and has become very knowledgeable about the City’s benefits plans, budget, and overall goals related to the management of benefits. Gallagher is uniquely qualified to assist City staff in selecting a Pharmacy Benefits Manager that will offer a high level of service to employees with minimal disruption to existing service while providing significant cost savings. Gallagher has provided a proposal to the City that outlines cost and timing of a competitive bid process to select a PBM. The proposal includes the development of the scope, expectations for service, and detailed questions for the pharmacy benefits managers that choose to bid. Gallagher will then work with each submission to determine overall cost, 2 potential savings, overall plan design, and potential disruption in service based on actual pharmacy claims data and each submission’s proposed pricing structure. The timeline prepared by Gallagher ensures full implementation of a PBM by July 1, 2023. Pricing as proposed by Gallagher, is as follows: RFP Process $50,000 Implementation Support (waived if current vendor is selected) $15,000 Post Implementation Audit (waived if current vendor is selected) $45,000 MAXIMUM POTENTIAL COST $110,000 It is possible that the competitive process will result in the City remaining with the current vendor (Wellmark). If that is the case, then the City would not retain Gallagher’s services for the Implementation Support ($15,000) or the Post -Implementation Audit ($45,000). Funding for Gallagher’s services under this contract will be made available from the Health Insurance Fund available balance, which is estimated at approximately $7.7 million as of January 1, 2023. Staff is requesting that the City Council waive the City’s Purchasing Policy to allow the City to award the contract for the PBM selection process to Gallagher. Doing so will allow the process to conclude in time for a July 1, 2023 effective date and will reduce the possibility of disruption to employees and covered family members if a new PBM is selected. It is expected that an evaluation of this type may need to occur in the future at intervals of 3-4 years to ensure that the pharmacy services received by the City are the best possible value and quality. It is staff’s expectation that any consulting services obtained in the future to assist in the evaluation process would be competitively bid. ALTERNATIVES: 1. Waive the City’s Purchasing Policy and Procedures requirement for competitive bidding and award a contract for the Pharmacy Benefits Manager selection process to Arthur J. Gallagher Benefits Services in an amount not-to-exceed $110,000. 2. Direct staff to solicit competitive proposals for assistance in the selection of a Pharmacy Benefits Manager, thereby delaying the implementation of any new agreement for Pharmacy Benefits Manager services to July 2024 at the earliest. CITY MANAGER’S RECOMMENDED ACTION: City staff is hopeful that significant cost savings can be achieved by soliciting proposals for a Pharmacy Benefits Manager. Because of the substantial analysis required to accurately evaluate potential proposals for this service, staff believes the best course is to utilize a third-party firm to solicit proposals and evaluate them. Gallagher has provided 3 health insurance benefits analysis for the City for the past several years and City staff is satisfied with the firm’s work. Due to the start of a new plan year in July, 2023, staff believes it is prudent to waive the City’s purchasing requirement to solicit competitive proposals and award a contract to Gallagher for the Pharmacy Benefits Manager evaluation process. Doing so will allow the evaluation to be completed and pote ntial new vendor to be in place before July 1, 2023. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. 1 ITEM#: 14 DATE: 01-10-23 DEPT: P & R COUNCIL ACTION FORM SUBJECT: COMMUNITY ATTRACTION AND TOURISM (CAT) GRANT APPLICATION FOR FITCH FAMILY INDOOR AQUATIC CENTER BACKGROUND: To help with funding for the Fitch Family Indoor Aquatic Center, an Enhance Iowa Community Attraction and Tourism (CAT) grant can be pursued. Historically, awards have been between 10-20% of total project costs, however, the Enhance Iowa Board has an award cap policy of $1 million. Staff is working with representatives from the Ames Chamber of Commerce on this application . In November 2022, staff submitted an intent to apply and listed the anticipated request of $500,000. Staff received confirmation that the intent to apply had been received and was given the materials necessary to submit an application. COMMUNITY ATTRACTION AND TOURISM GRANT: Available Funding and Grant Request Awards Funding for the CAT Grant Program is made possible through an appropriation by the Iowa Legislature. Grant awards are made by the Enhance Iowa Board (EIB) which is a function of the Iowa Economic Development Authority. As a reference, grant awards range from $50,000 to over $1,000,000. Match Requirement Applicants are required to have a cash match from the City and County governments to be eligible for a grant. The match is to demonstrate investment from the City and County in projects being considered for CAT grant funding. Enhance Iowa Board does not dictate what this match must be in terms of a percentage of the total project or a specific dollar amount. EIB does indicate that at least 65% of the total project cost has been raised prior to applying and must be in the form of cash donations or pledges. Please note the Story County Board of Supervisors approved $500,000 at its Tuesday, May 3, 2022 meeting to be given to the City of Ames for the Fitch Family Indoor Aquatic Center. The Board of Supervisors included the condition that Story County residents pay the same fees as Ames residents in exchange for the funding. Council has yet to accep t this funding and accompanying stipulation. Application Deadline and Grant Funding Award Date The CAT Grant application is due January 15, 2023. The application will undergo an EIB staff review to determine if all eligibility requirements have been met. Applications that clear the staff review will be invited to present to the EIB. A decision on funding awards 2 will be made sometime after the presentation. A component of the CAT grant application process is having City Council pass a resolution supporting the application submittal. ALTERNATIVES: 1. Resolution approving the submittal of a State of Iowa Community Attraction and Tourism grant application for the Fitch Family Indoor Aquatic Center in the amount of $500,000. 2. Do not submit a Community Attraction and Tourism grant application. CITY MANAGER’S RECOMMENDED ACTION: Cost estimates for the Fitch Family Indoor Aquatic Center coupled with the uncertainties in the construction market have raised questions as to whether there is enough funding for this project. Due to these funding concerns, any opportunity to secure additional funding should be pursued. Council is only being asked to approve submitting a CAT grant application at this time and will have an opportunity at a future meeting to accept or deny a grant if the City receives an award. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1. 1 ITEM#: 15 DATE: 1-10-23 DEPT: Electric COUNCIL ACTION FORM SUBJECT: PRELIMINARY PLANS AND SPECIFICATIONS FOR FURNISHING 69kV AND 161kV SF6 BREAKERS BACKGROUND: Electric Services operates electrical transmission and distribution infrastructure to route electricity to customers in the community. Large circuit breakers are installed in the system’s infrastructure, which are utilized to disconnect portions of the electric transmission system when there is a fault on that portion of the system. This helps isolate and minimize the area effected by a system fault, prevents damage to property and equipment, and minimizes the risk to personnel and the public who may be near a fault. Electric Services needs to procure 69kV SF6 circuit breakers to replace existing obsolete oil-filled circuit breakers at the Mortensen Road Substation, and for the installation of new breakers as part of a planned project at the Ontario Road Substation. Spare 69kV and 161kV breakers are also needed for Electric Services’ inventory, which will be kept on hand for the emergency replacement of a breaker in the event of a breaker failure. The Engineer’s estimate of the cost of these circuit breakers is $450,000, including tax and freight. The cost for the breakers will be divided among the following projects and funding sources: FUNDING SOURCE AMOUNT AVAILABLE Ontario Road Substation CIP Project $ 1,300,000 Electric Operating Budget (Minor Transmission Substation Improvements) 380,000 TOTAL $ 1,680,000 The breaker needed for the Mortensen Road CIP project will be purchased and placed into the Electric inventory, where it will be reserved until construction occurs in FY 2024/25. At that time, the cost of the transformer will be assigned to the Mortensen Road CIP project account. ALTERNATIVES: 1. Approve preliminary plans and specifications for Furnishing SF6 Circuit Breakers and set for February 1, 2023, as the bid due date and February 14, 2023, as the date of public hearing and award of contract. 2 2. Do not approve the plans and specifications at this time. CITY MANAGER’S RECOMMENDED ACTION: The purchase of this equipment is necessary to replace obsolete breakers at the Mortensen Road Substation, the Ontario Road Substation , and for system spares. Lead time for this equipment has increased significantly making it more difficult to procure and repair obsolete or failed breakers. Combining these purchasing needs for all three purposes will help to advance the aquisition of these long-lead material items for installation. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as stated above. ITEM#: 16 DATE: 01-10-23 DEPT: W&PC COUNCIL ACTION FORM SUBJECT: WPC METHANE GENERATOR ENGINE NO. 2 MAINTENANCE BACKGROUND: The Water Pollution Control Facility (WPCF) uses methane-fueled engines utilizing gas produced in the anaerobic digestion process. Heat is captured from the methane engines to maintain the temperature of the digesters. At the same time, the engines power electrical generators to offset approximately twenty percent of the electrical demand for plant operations. The methane generator engine’s manufacturer recommends eight-year cycles between overhauls due to the nature of gas produced by the anaerobic digestion process. The gas is referred to as “sour gas” and is harsher on the engines than natural gas because of impurities such as hydrogen sulfide and siloxanes. Methane Generator Engine No. 2 (MG-2) is original to the plant and was installed in 1988. MG-2 was last overhauled in 2013 and is now in need of repair. Since the last overhaul, a project to replace Methane Generator Engine No. 1 with a boiler was completed. During that project, MG-2 was damaged, and an emergency repair was completed by Interstate Power Systems. The repair was sufficient at the time, but the engine is now showing decreased efficiency and needs a full overhaul with the replacement of main components such as cylinders 1, 3, and 8. Additionally, the exhaust gas heat exchanger has not been functional for several years which has decreased the efficiency of this system. Currently, MG-2 is out of operation due to the required maintenance, resulting in higher electrical costs for WPCF and the inability to fully utilize the methane. On September 27, 2022, Council awarded a contract to Interstate Power Systems of Altoona, Iowa, in the amount of $99,597. Included with that contract were the parts and labor to overhaul MG-2 and the labor associated with replacing the heat exchanger. On November 4, 2022, Interstate Power Systems notified City staff that they would no longer be able to fulfill all terms of the contract. Staffing changes would no longer allow Interstate Power Systems to provide technicians with adequate expertise to complete the overhaul of MG-2 or replacement of the exhaust gas heat exchanger. Interstate Power Systems had already ordered the necessary parts for the overhaul and has offered to provide them at cost to the City. This would benefit Interstate by removing the expensive parts from their inventory and would benefit the City by eliminating long lead times for delivery of the parts by a new contractor. A Change Order is necessary to remove the labor from the original contract and to account for core charges on a water pump and remanufactured heads. Core charges are incentives for the City to return the old parts to Interstate Power Systems so they can be remanufactured and resold. They are considered deposits that will be paid by the City upon delivery of the new parts and will be refunded when the old parts are returned to Interstate Power Systems for remanufacturing and resale. City staff has reviewed the costs for the individual parts and compared them to cost information available from other vendors. The costs are in line with the other vendors and staff believes taking delivery of the parts at this time will prevent supply chain delays in the future. A summary of the changes is included below. Original Contract Amount $99,597.00 Change Order #1 Labor for MG-2 overhaul and heat exchanger replacement ($58,933.95) Core Charges – Water Pump/Remanufactured Heads $7,495.55 Core Charge Credit ($7,495.55) Revised Contract Amount $40,663.05 City staff is currently developing plans and specifications to solicit bids for the labor to complete the overhaul of MG-2 and replace the exhaust gas heat exchanger, utilizing the parts purchased through Interstate. ALTERNATIVES: 1. Approve Change Order No. 1 deducting $58,933.95 from the contract with Interstate Power Systems of Altoona, Iowa. 2. Do not approve the change order at this time. CITY MANAGER’S RECOMMENDED ACTION: Interstate Power Systems is no longer able to provide com petent technicians for the overhaul of Methane Generator Engine No. 2 or replacement of the exhaust gas heat exchanger. They have offered to still provide to the City the parts they already have in their possession. City staff believes procuring the necessary parts at this time will expedite repairs in the future following a new competitive solicitation for labor. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. ITEM#: 17 DATE: 01-10-23 DEPT: PW COUNCIL ACTION FORM SUBJECT: 2019/20 ARTERIAL STREET PAVEMENT IMPROVEMENTS - 13TH STREET (WILSON AVE - DUFF AVE) BACKGROUND: This program is for repair and reconstruction of arterial streets. The 2019/20 location was 13th Street between Wilson Avenue and Duff Avenue. On June 23, 2020, City Council awarded the project to Con-Struct, Inc of Ames, Iowa, in the amount of $2,350,344.20. Change Order 1 was administratively approved by staff in the amount of $14,283.30. This cost increase was to account for unknown water service connections, steel casing of watermain required due to a sanitary sewer conflict, and the removal and replacement of a storm line found to be in poor condition. Change Order 2 (Balancing) reflects the final measured field quantities, resulting in a contract reduction of ($224,070.54). The final construction of the projected was completed in the amount of $2,140,556.96 Revenue and expenses associated with this program are as follows: Funding Source Available Revenue Estimated Expenses 2019/20 Arterial Street GO Bonds $ 1,600,000 2019/20 Water System Improvements 1,000,000 2019/20 Sanitary Sewer Rehabilitation 115,000 2017/18 Multi-Modal Roadway 35,000 2016/17 Low Point Drainage Improvements 200,000 Construction Contract $ 2,350,344.20 Change Order 1 (approved by staff) 14,283.30 Change Order 2 Deduct (224,070.54) Engineering/Administration 321,000.00 $ 2,950,000 $ 2,461,556.96 Remaining funds reflected in GO Bonds and Water System Improvements will be utilized on future infrastructure projects. ALTERNATIVES: 1. a. Approve Change Order 2 for the 2019/20 Arterial Street Pavement Improvements – 13th St (Wilson Ave to Duff Ave) in contract reduction in the amount of $224,070.54. b. Accept the 2019/20 Arterial Street Pavement Improvements – 13th St (Wilson Ave to Duff Ave) as completed by Con-Struct, Inc of Ames, Iowa, in the amount of $2,140,556.96. 2. Direct staff to pursue modifications to the project. CITY MANAGER’S RECOMMENDED ACTION: This project has been completed in accordance with the approved plans and specifications. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as noted above. ITEM#: 18 DATE: 1-10-23 DEPT: PW COUNCIL ACTION FORM SUBJECT: PRAIRIE VIEW INDUSTRIAL CENTER UTILITY EXTENSION PROJECT BACKGROUND: The Prairie View Utility Extension Project consists of the extension of water and sanitary sewer mains to the recently annexed area east of Interstate 35 (I-35). The overall project includes water main and a gravity sewer main between I -35 and Potter Ave (formerly 590th), a force sewer main to be installed from Teller Ave (formerly 580th) to west of Freel Drive, and a sewer lift station to be constructed. Most of this new area has been certified by the Iowa Economic Development Authority for industrial development. On May 12, 2021, City Council awarded the Prairie View Industrial Utility Project to Keller Excavating, Inc., of Boone, Iowa, in the amount of $6,168,791.40. Change Order 1 was administratively approved by staff, resulting in a contract deduction of $206.40. On August 9, 2022, City Council approved Change Order 2 in the amount of $2,210,255.72. This provided for the construction of water main and sanitary from Teller Ave to Potter Ave, funded though American Rescue Plan Act (ARPA) funding . Keller Excavating has started the water main and sanitary sewer work from Teller Ave to Potter Ave. After utility locates were marked out in the field, it was discovered that the Nevada raw water well line was not located correctly as shown in the original design. At 5501 Lincoln Way, the Nevada raw water line shift s south into the bottom of the ditch (see attached map). This conflicts with the trenching operation that is necessary to construct the sanitary gravity main at a depth of 25 feet through this location. Nevada’s raw water line has two bends shift ing south, then another two bends where it shifts back to the north. At each of these bends is a concrete r eaction block to hold the bends in place from the forces in the watermain. These blocks cannot be disturbed by trenching operations, otherwise the work could potentially cause a failure in Nevada’s raw water line. Staff explored several options to address the conflict: 1) RELOCATE THE RAW WATER LINE The City’s contractor would bore or trench in a new raw water line further north. Completing this work would take two to three days where the water line would be offline. Recently staff was notified that existing industries on East Lincoln Way draw water from Nevada’s raw water line and relocating the main would put them out of production, which would not be acceptable. 2) SHIFT THE SANITARY SEWER MAIN The sanitary sewer could be relocated south near the edge of East Lincoln Way. This would then require the removal and replacement of a large section of East Lincoln Way to accommodate the trenching operation. This is less expensive initially but could cause significant maintenance issues due to settlement of soil at the trench. It would also be difficult to pave this section of East Lincoln Way during the winter months, potentially extending the project closure and further disrupting E. Lincoln Way traffic and industry operations, making this option undesirable. 3) JACK AND BORE THE SANITARY MAIN THROUGH A CASING The sanitary main could be placed inside a metal casing that has been bored through this section. This option would allow the sanitary sewer to be constructed as currently designed and meet all DNR requirements. In this same area there is an Alliant Energy pressure regulating station with both high-pressure and low- pressure gas lines. The jack and bore operation would avoid any additional potential conflict with these utilities by boring under them, leaving all existing utilities undisturbed. After evaluating these options and considering the advantages, disadvantages, and costs, staff believes the best option is to jack and bore the sanitary sewer main through this section of the project. The estimated cost to complete jack and boring through this section is an additional $337,280.00. The funding for this change order would come from savings from the North Sunset Ridge Sewer project ARPA funds. Revenue and expenses associated with this program are estimated as follows: Funding Source Available Revenue Estimated Expenses G.O. Bonds $4,300,000 EDA Grant 1,500,000 Prior Authorized ARPA Funds 900,000 ARPA (2023/24 Ames Plan 2040 Water & Sewer Utility CIP) 2,000,000 ARPA Savings (N Sunset Ridge Sewer) 300,000 Current contract $8,378,840.72 Change Order 3 (this action) 337,280.00 Engineering and Administration 275,000.00 TOTAL $9,000,000 $8,991,120.72 ALTERNATIVES: 1. Approve Change Order 3 for the Prairie View Industrial Center Utility, as negotiated, in the amount of $337,280.00, funded from ARPA savings. 2. Do not approve Change Order 3. CITY MANAGER’S RECOMMENDED ACTION: Approving the change order will allow construction to continue as efficiently as possible while protecting existing utilities from damage and minimizing disruption to traffic and existing businesses. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as noted above. ITEM#: 19 DATE: 01-10-23 DEPT: PW COUNCIL ACTION FORM SUBJECT: 2021/22 SHARED USE PATH MAINTENANCE – LITTLE BLUESTEM BACKGROUND: This program provides for shared use path maintenance activities such as patching, joint repairs, micro-surfacing, as well as complete replacement. Locations are determined using a condition inventory, visual inspections of paths, and input from users. The improvements will enhance safety, usability, and aesthetics of the path/trail system. This project was located between Little Bluestem Court and Gateway Hills Park Drive and replaced the existing shared use path with a new concrete path. On April 26, 2022, City Council awarded the project to TK Concrete of Pella, Iowa in the amount of $120,604.90. Change Order 1 (Balancing) was administratively approved by staff in the amount of $2,973.45 and reflects the final measured field quantities. Construction was completed in the amount of $123,578.35. There is $125,000 of Local Option Sales Tax allocated for this program annually in the Capital Improvement Plan. These funds have been accumulated and carried over into the current budget. There is $269,639 in available funding for this project. The remaining funds will be programmed for future Shared Use Path Maintenance projects. ALTERNATIVES: 1. Accept the 2021/22 Shared Use Path Maintenance – Little Bluestem project as completed by TK Concrete of Pella, Iowa in the amount of $123,578.35 2. Direct staff to pursue modifications to the project. CITY MANAGER’S RECOMMENDED ACTION: The project was completed in accordance with the approved plans and specifications resulting in improvements in safety and usability of the shared use path system. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as noted above. ITEM#: 20 DATE: 01-10-23 DEPT: PW COUNCIL ACTION FORM SUBJECT: FINAL ACCEPTANCE 2020/21 AIRPORT IMPROVEMENTS PROGRAM (RUNWAY 01/19 AND TAXIWAY A NORTH LIGHTING) BACKGROUND: On June 22, 2021, the City Council approved the Federal Aviation Administration (FAA) grant agreement and awarded a contract for the 2020/21 Airport Improvements Program (Runway 01/19 And Taxiway A North Lighting) to Voltmer, Inc. of Decorah, IA, in the amount of $390,399.50. Design and Construction Inspection costs were $99,900, which brought the total project budget to $490,299.50. Under the COVID-19 relief legislation, the original grant offer was funded at 100% Federal share with a maximum obligation of $493,300. Costs over that initial amount are covered by the standard FAA funding having a 90% Federal share and a 10% local match. The project had one change order of $4,018.43. This brings the total project expenses to $494,317.93. A summary of revenues and expenses for the project is below. Revenues Expenses FAA Grant (at 100%) $ 493,300.00 Design $ 55,400.00 FAA Grant Amendment (at 90%) 898.00 Inspection 44,500.00 Airport Improvement Fund 144.18 Publishing 24.25 Construction 390,399.50 CO #1 4,018.43 Total $ 494,342.18 Total $ 494,342.18 ALTERNATIVES: 1. Accept the 2020/21 Airport Improvements Program (Replace Runway 01/19 And Taxiway A North Lighting) project as completed by Voltmer, Inc. of Decorah, IA, in the amount of $394,417.93. 2. Direct staff to pursue modifications to the project. CITY MANAGER’S RECOMMENDED ACTION: This project was completed per the approved plans and specifications. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as noted above. 1 ITEM#: 21 DATE: 1-10-23 DEPT: Police COUNCIL ACTION FORM SUBJECT: LIQUOR LICENSE RENEWAL, 1 NIGHT STAND, 124 WELCH AVENUE BACKGROUND: 1 Night Stand, located at 124 Welch Avenue, has applied for renewal of its Class C Liquor License. These state licenses and permits must receive approval by the local authority (City Council) before they can be issued by the state. The Police Department conducts compliance checks on establishments that hold liquor licenses in the City of Ames. These compliance checks are completed by taking an underage person to a liquor licenses establishment who then attempts to purchase alcohol. A business passes the check if the employee asks for identification and rightly refuses the purchase. An establishment fails the compliance check if the employee sells to the underage person. The Police Department conducted one such compliance check on March 25, 2021. An employee of 1 Night Stand sold alcohol to an underage person during the check and was cited. The Police Department conducted a follow-up compliance check later in the year and the establishment passed. The Police Department conducted another compliance check on October 20, 2022, and an employee again sold alcohol to a minor. This is the second violation within two years and Iowa Code 123.50(3)(b) prescribes a 30-day suspension and $1,500 fine. This suspension will be imposed on the establishment by ABD regardless of whether the City Council chooses to approve or deny the requested renewal. In addition to the failed compliance checks, in the previous 12 months, Ames officers have issued 11 citations at this location, including 10 citations to underage individuals for being on-premises. Of those 10, officers were able to verify one used a fake ID. It is worth noting that officers are unable to determine how the remaining underage individuals entered the bar. Staff spoke with the owner of 1 Night Stand, Jerrad Atkin, on January 3, 2023, to determine what changes they intended to make to improve upon their performance. The owner reported they have a zero-tolerance policy regarding minors entering the establishment and require all individuals to show ID at the door. The owner felt there should be a larger penalty for minors who use fake IDs to gain entry. The owner also explained the failure of the second compliance check in October occurred when the door person left for a few minutes to get ice and left the door unattended, which allowed the minor into the establishment. Staff encouraged the owner to attend the Council meeting 2 should Council members have questions for him. He indicated that he would be in attendance. ALTERNATIVES: 1. Deny the application for a 12-month renewal but suggest that the applicant submit an application for an 8-month license. If this alternative is approved, the establishment will be subject to the 30-day suspension and fine by the state of Iowa some at some point during the renewal period. The applicant could choose to appeal the denial or submit a request for an 8-month license, which would be presented to the City Council for consideration at a future meeting. 2. Deny the application for a 12-month liquor license renewal. If this alternative is approved, the establishment will be subject to the fine by the state of Iowa. The applicant could appeal this denial to the state. 3. Approve the application for a 12-month liquor license renewal. If this alternative is approved, the establishment will be subject to the 30-day suspension and fine by the state of Iowa some at some point during the renewal period. CITY MANAGER’S RECOMMENDED ACTION: Compliance checks are conducted by the Ames Police Department and ABD to ensure liquor license holders are complying with their obligation to ensure underage individuals are not being sold or served alcohol. These compliance checks require the establishment to exercise a minimal level of due diligence to pass. In order to comply, the establishment must simply ask the customer for identification, confirm the age of the customer as being less than 21, and deny the sale. The applicant, 1 Night Stand, has failed two of three such compliance checks. While the Police Department has not found a high number of underage individuals on premise, it is clear from two compliance check failures in as many years that the establishment has not been successful at the most basic of functions, checking an ID and confirming the age of a customer to being less than 21. Based on the nature of the citations and the cooperation from the applicant, the Police Department believes that a shorter license term than one year would provide the opportunity to more closely review the progress the establishment has made towards compliance. 3 Therefore, it is the recommendation of the City Manager that the City Council take the recommendation of the Chief of Police to adopt Alternative No. 1, as described above. If the City Council denies the requested license renewal, the denial can be appealed, first to the ABD, then to the Administrative Law Judge, then the Director of ABD, and then District Court. Filing an appeal with ABD places a stay on the denial, and the establishment is allowed to continue to operate until the appeal process is complete. If the appeal(s) are not successful, alcohol may not be sold on the premises for one year, or until a new licensee applies for and is granted a new liquor license. 1 ITEM#: 22 DATE: 1-10-23 DEPT: Police COUNCIL ACTION FORM SUBJECT: LIQUOR LICENSE RENEWAL, MICKEY’S IRISH PUB, 109 WELCH AVENUE BACKGROUND: Mickey’s Irish Pub, located at 109 Welch Avenue, has applied for renewal of its Class C Liquor License with Outdoor Service privilege. These state licenses and permits must receive approval by the local authority (City Council) before they can be issued by the state. The Police Department conducts compliance checks on establishments that hold liquor licenses in the City of Ames. These compliance checks are completed by taking an underage person to liquor licenses establishments who then attempts to purchase alcohol. A business passes the check if the employee asks for identification and rightly refuses the purchase. An establishment fails the compliance check if the employee sells to the underage person. Mickey’s Irish Pub passed a compliance check conducted by the Police Department on March 25, 2021. However, in the previous 12 months, Ames officers have cited 24 individuals for being on-premise underage. Of those 24, officers were able to verify 15 used fake IDs. It is worth noting that officers are unable to determine if an individual used a fake ID or gained entrance some other way in all other cases. While 24 citations in the course of one year is a higher number than staff would like to see, the fact that 15 (or at least 62%), used a fake ID to gain access is a mitigating factor. An establishment must use due diligence to be in compliance with the duties of maintaining a liquor license. It would appear the establishment is checking IDs, but some patrons are taking extraordinary steps to defeat the establishment’s efforts. Staff spoke with the owner of Mickey’s, Ravinder “Ben” Singh about the violations and what steps could be taken to improve upon the establishment’s performance in this area. The owner said they will be purchasing ID scanners to be used at the door to check the validity of each ID. He also said he will require his staff to attend ID training offered by the Police Department and the Iowa Program for Alcohol Compliance Training (I-PACT) through ABD. The owner also reported he terminated two problem employees, and he would maintain proper staffing at the door to ensure ID checks are being conducted. 2 ALTERNATIVES: 1. Approve the application for a 12-month liquor license renewal. 2. Deny the application for a 12-month liquor license renewal. CITY MANAGER’S RECOMMENDED ACTION: Compliance checks are conducted by the Ames Police Department and ABD to ensure liquor license holders are complying with their obligation to ensure underage individuals are not being sold or served alcohol. The applicant, Mickey’s Irish Pub passed this check on March 25, 2022. While 24 on-premises violations is higher than staff would like to see, there is evidence to suggest that the establishment is performing due diligence in its ID- checking practices. Further, the owner is committed to improving on the number of citations with new procedures and equipment. Therefore, it is the recommendation of the City Manager that the City Council take the recommendation of the Chief of Police to adopt Alternative No. 1. If the City Council opts for Alternative #2, the denial of a liquor license can be appealed, first to the ABD, then to an Administrative Law Judge, and then the District Court. If the applicant files an appeal with ABD, they are allowed to continue to operate. If the appeal(s) are not successful, alcohol may not be sold on the premise for one year, unless or until a new licensee applies for and is granted a new liquor license. 1 ITEM#: 23 DATE: 01-10-2023 DEPT: P&H Staff Report FRINGE PLAN UPDATE URBAN RESERVE AREAS January 10, 2023 BACKGROUND: At its October 25, 2022 meeting, the City Council reviewed draft Ames Urban Fringe Plan Update public comments and recommended changes that were received from the Board of Supervisors (Attachment A). The original staff report with the public comments is available at this link. At the October meeting, staff discussed how changes to the draft Plan proposed by the Board of Supervisors did not meet many of the City’s priorities for a cooperative fringe plan compared to the City’s standard subdivision and annexation authority. This included changes to the Urban Reserve Overlay, annexation policies, and consideration of limitations on conditional uses in the county. On November 22, 2022 the City Council directed staff to provide a response to the County and Gilbert about their proposed modifications the draft plan. Full details are included with the November report available at this link. City staff provided a letter outlining the City Councils decision and an edited update of the Draft Plan on November 23rd to representatives of the Gilbert and Story County THE CITY’S NOVEMBER RESPONSE ADDRESSED FIVE KEY ISSUES, AMONG OTHER DETAILS: 1.Including limits for certain conditional uses within the Growth Areas and Urban Reserve Overlay. 2.Allowing for annexation within the Urban Reserve Overlay, when part of a voluntary annexation. 3.Removing fringe Urban Reserve Overlay areas to the southeast of I-35, south of Worle Creek, and north of 190th Street west of the Union Pacific Railroad line. 4.Establishing 180th Street as the boundary for annexation potential between Gilbert and Ames 5.Clarifying the 28E agreement would be for an initial 5-year period with an automatic extension of 5 years, unless cancelled in advance. The agreement would also allow for notice and withdrawal from the agreement by any party. DECEMBER RESPONSE FROM GILBERT AND STORY COUNTY: Both Gilbert and Story County provided letters to the City Council responding to the changes. Gilbert focused on that they did not support annexation by either Ames or Gilbert between 190th and 180th Street. (Attachment A) Under their proposal, this area would 2 be subject to County regulation. Gilbert desires to have a buffer between Gilbert and Ames. Staff’s presumption is that the remainder of the Plan Update details are acceptable based upon Gilbert’s letter. Story County responded by accepting the City’s November proposal for changes, including limiting of certain conditional uses, but added requests regarding the mapping of the Urban Reserve Overlay. (Attachment B) The County maintains within their letter that with agreed upon limitations to certain uses within the Urban Reserve Overlay, it would like to reduce the amount of area mapped as Urban Reserve by: 1. Removing all Urban Reserve Overlay and growth area designation to the southwest (i.e both north and south of Worle Creek, including former Champlin property) and designating it as Ag and Farm Services. 2. Removing all Urban Reserve Overlay between 180th and 190th and designating it as Ag and Farm Services. 3. Consider removing additional undescribed areas from the Overlay to reduce the total acreage within the Overlay. All of the proposed area changes would be mapped solely as Ag and Farm Services without the Overlay. Ag and Farm Services does not allow for development or for annexation without amending the Plan to another designation. Amendments are subject to approval by all cooperators of the 28E agreement. OPTIONS: The City’s November response clearly identified the City’s priorities for participating in a Fringe Plan Update. The final issue appears to be mapping of the Urban Reserve Overlay. City staff believes that City Council should evaluate options related to Story County’s three requests and make a final decision on how, or if, to proceed with the project. 190TH STREET AREA: Both Gilbert and Story County have reservations about the area north of 190th Street being designated as potentially annexed within the life of the Plan (10 years). The concerns are “buffering” of the two communities, continued use of farmland, and premature annexation of the area without developing in other City designated growth areas. Having the area as Ag and Farm services would essentially preserve the status quo in terms of zoning and subdivisions, but it would not have the Conditional Use limitations previously agreed upon for the Plan if there is no Overlay. This area is shown as Urban Reserve within Ames Plan 2040 and was considered a Tier 3 development area in the scenario analysis because of needed infrastructure extensions to serve full buildout of the area. Ensuring that the area is maintained as a viable option for future growth of Ames is an important component of Ames Plan 2040 in terms of flexibility to meet growth demands over time. 3 Option 1 - Agree to County Request for No Urban Reserve Overlay North of 190th Street As discussed above, future annexation or other type of development would require a Map amendment. Agreeing to this this change would ensure that neither Gilbert nor Ames would annex into this area without approval of a map change to another designation. Generally, the status quo would be preserved. However, if the area is no longer in the Overlay it will not have any specific limitations on conditional uses that would apply to other areas adjacent to the City, it would default to the typical County requirements. Secondly, if the area is designated as Ag and Farm Services, a property owner could propose to change a parcel of land to Rural Residential Expansion, subject to approval by all parties to the agreement. The Urban Reserve Overlay does not allow for consideration of such a map amendment. Option 2 - No Change to the City of Ames November position and maintain the Urban Reserve Overlay mapping proposal from 190th to 180th No change would be made from the November proposal where the City excluded only the land west of the railroad. This option preserves the broadest range of City interests. However, it is unclear if Gilbert would continue to participate in the process without a change regarding a “buffer” between the City and Gilbert. Story County may or may not continue with the update if there is no change to mapping the overlay in this area as their letter described this change as an additional request. Option 3 - Direct staff to investigate an option to partially map the area north of 190th Street as Urban Reserve The City removed areas to the west of the railroad tracks to focus our intentions for growth planning along Highway 69 and Grant Avenue up to 180th street. If City Council desires to consider if less Urban Reserve area could meet the City objectives within the context of the Fringe Plan, it could direct staff to propose an alternative for Council consideration before making a final decision. SOUTHWEST AREA: The County proposes to designate all areas to the southwest as Ag and Farm Services. The City Council previously concurred with removing areas south of Worle Creek, with the exception of the former Champlin property remaining as Growth Area due to proximity of City services adjacent to the site. Other than the former Champlin property, Ames Plan 2040 identifies this area as Urban Reserve and as a Tier 2 option for growth due the need for a substantial sanitary sewer trunk line extension. Extension of sewer would serve a broader area to the west in Boone County as well as this area. The City does not have any immediate plans for constructing the sewer extension, thereby it is appropriately Urban Reserve within Plan 2040. The former Champlin property has been identified as Growth Area because it is readily serviceable due to water and sewer extensions existing nearby. Street paving is the primary infrastructure issue needing improvement for it to be developed with residential uses. This one site is situationally different from other properties in this area. County 4 concerns for this land revolve around public concern about the integrity of the natural area related to Worle Creek. The City would apply storm water management and environmental protections to any future project that may occur on the site. Option 1 - Agree to County Request for No Urban Reserve Overlay in the Southwest As is the case with the 190th Street discussion, if the area is Ag and Farm Services no development could occur, but limitations on conditional uses would not apply. Overall, this area is less significant for planning purposes and annexation than the 190th area, if there is no concern about conditional uses. Option 2 - No Change to the City of Ames November Urban Reserve Overlay mapping proposal No change would be made from the November proposal where the City excluded only lands south of Worle Creek. This means lands along 240th Street would remain as Urban Reserve. The former Champlin property will maintain its Growth Area designation. Option 3 – Maintain the former Champlin property as a Growth Area, but agree with the County’s other requested changes in the Southwest regarding Urban Reserve. Agree with the County’s request, with the exception of the unique condition of the former Champlin property with access to abutting utilities and maintain the Growth Area designation for it. OTHER URBAN RESERVE OVERLAY CHANGES: The County is requesting the City to propose reducing the Urban Reserve Overlay for other unspecified areas beyond the Southwest and 190th Street. Option 1 - Reduce Urban Reserve Overlay areas to the east, southeast, and northwest as part of the final adoption process. Staff would review options for reducing areas at the periphery of the Urban Reserve and incorporate into a final Plan with the final approval process. Option 2 - Take no action on this request and maintain the November proposal No change would be made from the November proposal. STAFF COMMENTS: The current Fringe Plan 28E agreement was extended on December 20th until April 30th to allow for time to consider these most recent changes and potentially to proceed with a final plan. If City Council accepts the proposed changes or directs staff to proceed with any of the options described above, staff will work to finalize a plan and write a new 28E agreement with the intent of having both approved by the end of April. Staff has highlighted in previous reports that implementation of the Fringe Plan Update, as it relates to County zoning, would require ordinance amendments as follow up action 5 to a new 28E agreement. More precise zoning amendments would be described with the Plan approval process and described with the 28E agreement. Due to timing, these types of ordinance changes would not occur in April with the 28E agreement approval, but could be planned for later in 2023. Any final agreement would include a clause that if the ordinance changes are not completed within a defined amount of time from approval of the agreement, that the City could withdraw from the agreement. This type of clause would ensure that we are not bound by policies that do not include the other corresponding zoning changes. A general ability, with notice, to cancel or withdraw from the agreement would also be included within the 28E, similar to how it is currently structured. Staff believes the key issues for Council consideration at this time is the benefits of cooperative planning and management of the Fringe Area over the next ten years and how that balances with the ideals and goals of Ames Plan 2040 for the long term planning of the City. With a new agreement, the City benefits from joint planning and management of the Fringe Area for the most sensitive areas related to both short and long term interests of the City. Some of the joint management tools, such as limits on rezoning of land and limits on conditional uses, would not occur without such an agreement. However, with the December responses from the County and Gilbert it is clear there are concerns about how long-term growth north of the City is depicted in the Plan and if it is allowed during the life of the 28E agreement. Staff is concerned that limiting the Urban Reserve designation, especially any further north than 190th , could potentially limit land use compatibility protection and future annexation during the life of the Plan as it would be subject to a future map amendment. Staff believes December responses from the County and City of Gilbert do not fully achieve the goals of the Ames Plan 2040 related to flexibility and responsiveness to growth needs. However, in an attempt to secure the benefits derived from a Fringe Area Agreement, staff believes it would be beneficial to take the additional time to discuss Option 3 as it relates to the 190th Steet and Southwest Areas with the other parties before the City Council is asked to make a final decision. However, if the City Council prefers to continue to support the terms from the November proposal, then it would choose Option 2 for all areas. In this case, the other parties would have to decide whether to accept the City’s proposal or let the Fringe Area Agreement expire in April 2023. December 13, 2.02.2. STORY COUNTY BOARD OF SUPERVISORS LISA K. HEDDENS LINDA MURKEN LATIFAH FAISAL Story County Administration 900 Sixth Street Nevada Iowa 502.01 515-382.-72.00 515-382.-72.06 (fax) Mayor John Hail a and Members of the Ames City Council City of Ames 515 Clark Avenue Ames, lA 50010 Mayor Jon Popp and Members of the Gilbert City Council City of Gilbert 105 SE znd Street Gilbert, lA 50105 RE: Changes to the Draft Ames Urban Fringe Plan Dear Mayor Haila, Mayor Popp, and City Council Members, The Board of Supervisors has considered the edits made to the draft Ames Urban Fringe Plan by City of Ames' staff and Gilbert's November 2.3, 2.02.2., letter regarding the draft Plan. We appreciate both cooperators' time and responsiveness to the changes requested by the Board to the draft Plan. The Board accepts the City of Ames' changes to the Plan, with the following additional requests for the cooperators to consider. The requests are changes to the draft Land Use Framework Map. • Remove the Urban Reserve Overlay from the area north of 190th and south of 180th Streets, and the area south of 190th and west of George Washington Carver. See Attachment A for a proposed map for this area. The Board requests this area be mapped as Agriculture and Farm Service only. • Remove the Urban Reserve Overlay and Urban Growth area south of Highway 30 and west of the Ansley development. Map the area as Agriculture and Farm Service and the areas zoned residential along Meadow Glen Road and State Avenue as Rural Residential-Existing. See Attachment B for the proposed map. • Finally, the Board asks the City of Ames to propose additional areas to be removed from the Urban Reserve Overlay so that the designation is reflective of a 10-year planning horizon. The County acknowledges and appreciates Ames' offer to remove the Urban Reserve Overlay south of Worle Creek and west of the railroad tracks (the tracks located east of George Washington Carver) along 1 190th. However, the County is still generally concerned about the size of the Urban Reserve Overlay. The Ames Urban Fringe Plan is a 10-year plan. The City has expressed that the Urban Reserve is a 50-year concept for city growth. Planning for a 50-year timeframe with a 10-year plan has created concern, especially given the limitations on conditional uses in the Urban Reserve Overlay versus the likelihood of city development. The Urban Reserve's size in the draft Plan prior to these changes was 17,251 acres. The City of Ames is just over 18,000 acres total in size. The city has annexed a little over 4,000 acres in the past 20 years. The changes proposed by the County will remove approximately 3,500 acres from the Urban Reserve Overlay, still leaving approximately 13,750 acres in the overlay. The County believes further reductions are in order, again, especially given the County's willingness to limit certain conditional uses in the area. If during the 10-year planning horizon, or during a review of the Plan after five years, the likelihood of development of these areas is higher, the County would be open to a discussion of mapping the areas with the Urban Reserve Overlay. In the interim, there would be the opportunity to request a Land Use Framework Map amendment should development be proposed that was more appropriate to occur inside of a city's corporate limits. Specifically regarding the area north of 190th, and the area west of George Washington Carver, the County shares the City of Gilbert's concerns-its desire to maintain a separate small-town identity, and the opportunities, including grants, associated. This area also includes high-value agricultural lands that the County wishes to emphasize remain in production for as long as possible. The Board supports Gilbert's request that Ames not annex north of 190th, and that Gilbert not annex south of 180th, during the life of the Plan. And regarding the area southwest of Ames, beyond the public comments generated about the area's mapping, the environmentally sensitive areas and topography cause the County to question the practicality of developing the area versus other Urban Growth and Urban Reserve Overlay areas. As acknowledged in part by the City in proposing to remove the Urban Reserve Overlay south of Worle Creek, development of the area is further constrained by the properties owned by Iowa State University. The Board asks the other cooperators to consider these requests and looks forward to continuing to work with Ames and Gilbert toward a mutually beneficial plan. We have acted to extend the current Plan to April 30, 2023, towards this goal and again ask the other cooperators to do the same. If either cooperator feels it beneficial, the County will continue to be open to hosting a work session to seek mutually agreed-upon solutions. Sincerely, aisal, Chair Story County Board of Supervisors Cc: Kelly Diekmann, Planning and Housing Director, City of Ames Sonia Arellano Sundberg, City Clerk, City of Gilbert 2 Attachment A Ames Urban Fringe Plan Draft Land Use Framework Map Proposed Story County Edits 12/13/22 Legend Two Mile Extraterriorial Review Area Ada Hayden Watershed Protection Area E2SJ Airport Protection Overlay ~ Subsurface Mining Overlay Environmentally Sensitive Overlay ~Urban Reserve Overlay Rural Residential-Existing Rural Residential­ Expansion Urban Growth Agriculture and Farm Service r _,. County Boundary City Limits .2\ N 0 0 .15 0.3 0.6 0 .9 1.2 ---Miles 3 • Attachment B Ames Urban Fringe Plan Draft Land Use Framework Map Proposed Story County Edits 12/13/22 1?41 ,--=- Ci ty of s, County <•t ~tory , lt ONR l:sn . HE RE. Gdrrn• SafeGraph GeoTechoolog tes, Inc, 1/NASA. USGS. EPA. NP~. I US Census oreau, USDA. PtCtomel ll (oro, !>to•v Cou nty, I & Max.a1 . . -l5 Legend 1::1 Two Mile Extraterriorial Review Area Ada Hayden Watershed Protection Area Airport Protection Overlay ~ Subsurface Mining Overlay Environmentally Sensitive Overlay Z2Z! Urban Reserve Overlay Rural Residential-Existing Rural Res idential­ Expansion Urban Growth Agriculture and Farm Service r _ .. County Boundary City Limits .~ N 0 0.1 0.2 0.4 0.6 0.8 M M Miles 4 1 ITEM#: 24 DATE: 1-10-23 DEPT: P&H COUNCIL ACTION FORM SUBJECT: MINOR SUBDIVISION FINAL PLAT FOR THE BLUFFS AT DANKBAR FARMS, FIRST ADDITION PLAT BACKGROUND: Friedrich Land Development Company, LLC and Friedrich & Sons, Inc. are requesting approval of a Final Plat for The Bluffs at Dankbar Farms, First Addition, a minor subdivision that would create two undevelopable outlots. This land (108.21 acres) was annexed in to City in 2022 with an accompanying annexation agreement. (see Attachment B – Proposed Final Plat). Proposed Outlot ZZ will be 915,305 square feet (21.01 acres). Proposed Outlot YY will be 3,798,204 square feet (87.20 acres) A minor subdivision includes three, or fewer, lots and does not require additional public improvements. A minor subdivision does not require a Preliminary Plat and may be approved by the City Council as a Final Plat, only, subject to the applicant completing the necessary requirements. The proposed project qualifies as a minor subdivision with no public improvements by the action of the City Council waiving requirements for improvements, because neither lot is developable until it is replatted in the future. Future platting will require a preliminary plat due to required infrastructure improvements. No building permits can be issued for either of the proposed outlots. The existing three parcels are located at the southwest corner of G W Carver Avenue and Cameron School Road. The parcels are used for agricultural purposes and are undeveloped. A high pressure gas line does run through the site within proposed Outlot ZZ. This property is currently in the process of being rezoned with master plan. Third reading of the rezoning ordinance and accompanying master plan is on this same agenda. The master plan addresses types of uses, sanitary sewer capacity, open space, and planned connections. The proposed configuration of the two outlots is consistent with the proposed rezoning boundaries and planned extension of Everest Avenue. Everest will be extended through proposed Outlot YY. The Annexation Agreement for this property includes requirements for future traffic improvements and connections, traffic signal fees, sanitary sewer capacity and open space planning that are all tied to preliminary and final plat approval. With this proposed Minor Final Plat these obligations are not yet fulfilled. However, the annexation agreement obligations will continue until there are satisfied with future Preliminary Plat approval. Additionally, the Annexation Agreement requires the developer to pay a proportional share of the traffic signal costs upon approval 2 of second final plat. Therefore, approval of this plat does not require payment of the fee, but the next final plat will require it. With the City Council’s waiver of improvement requirements related to the two outlots, no public infrastructure will be installed at this time. Public utilities, roadway improvement, and other infrastructure will be installed as a future date based upon approval of future preliminary and final plats. These improvements will be reviewed for compliance with the existing Annexation Agreement and Zoning Master Plan. ALTERNATIVES: 1. The City Council can approve the Minor Final Plat for The Bluffs at Dankbar Farms, First Addition, including a waiver of improvement requirements, based upon the findings and conclusions stated above. 2. The City Council can deny the final plat for The Bluffs at Dankbar Farms, First Addition, if the City Council finds that the proposed subdivision does not comply with applicable ordinances, standards or plans. 3. The City Council defer its approval until the completion of the rezoning with master plan process. CITY MANAGER’S RECOMMENDATION: The proposed final plat for The Bluffs at Dankbar Farms, First Addition will create two outlots for the purpose of ownership transfer and will be undevelopable as approved. Future preliminary and final plats will need to be approved in order for any future development to occur. Future development will comply with the applicable Annexation Agreement and Zoning with Master Plan for this site. Therefore, it is the recommendation of the City Manager that the City Council accept Alternative #1. 3 Attachment A Location Map 4 Attachment B Proposed Final Plat of The Bluffs as Dankbar Farms, First Addition 5 6 7 8 Attachment C Applicable Laws The laws applicable to this case file are as follows: Code of Iowa, Chapter 354.8 states in part: A proposed subdivision plat lying within the jurisdiction of a governing body shall be submitted to that governing body for review and approval prior to recording. Governing bodies shall apply reasonable standards and conditions in accordance with applicable statutes and ordinances for the review and approval of subdivisions. The governing body, within sixty days of application for final approval of the subdivision plat, shall determine whether the subdivision conforms to its comprehensive plan and shall give consideration to the possible burden on public improvements and to a balance of interests between the proprietor, future purchasers, and the public interest in the subdivision when reviewing the proposed subdivision and when requiring the installation of public improvements in conjunction with approval of a subdivision. The governing body shall not issue final approval of a subdivision plat unless the subdivision plat conforms to sections 354.6, 354.11, and 355.8. Ames Municipal Code Section 23.303(3) states as follows: (3) City Council Action on Final Plat for Minor Subdivision: (a) All proposed subdivision plats shall be submitted to the City Council for review and approval in accordance with Section 354.8 of the Iowa Code, as amended or superseded. Upon receipt of any Final Plat forwarded to it for review and approval, the City Council shall examine the Application Form, the Final Plat, any comments, recommendations or reports examined or made by the Department of Planning and Housing, and such other information as it deems necessary or reasonable to consider. (b) Based upon such examination, the City Council shall ascertain whether the Final Plat conforms to relevant and applicable design and improvement standards in these Regulations, to other City ordinances and standards, to the City's Land Use Policy Plan and to the City's other duly adopted plans. If the City Council determines that the proposed subdivision will require the installation or upgrade of any public improvements to provide adequate facilities and services to any lot in the proposed subdivision or to maintain adequate facilities and services to any other lot, parcel or tract, the City Council shall deny the Application for Final Plat Approval of a Minor Subdivision and require the Applicant to file a Preliminary Plat for Major Subdivision. 1 ITEM#: 25 DATE: 01-10-23 DEPT: P&H COUNCIL ACTION FORM SUBJECT: TEXT AMENDMENT REGARDING STANDARDS FOR HOME OCCUPATIONS BACKGROUND: On June 14, 2022, Governor Reynolds signed into law House File 2431, which pertains “to the regulation of home-based businesses”. The Ames Zoning Ordinance refers to home-based businesses as home occupations (they are otherwise the same). The new state regulations pre-empt certain local laws and limit how a city can regulate home-based businesses, principally regarding “no-impact” businesses. In order to continue to apply standards to home occupations, the City must modify its zoning standards to comply with state law. Home occupations are considered a secondary or accessory function to the primary use of a dwelling unit as a residence. An occupant of the residence must be employed at the business. Home occupations currently are allowed in all residential zoning districts subject to permitting requirements and performance standards of Article 13 of the Zoning Ordinance. Generally, a large range of uses is permissible with review by the Zoning Board of Adjustment. The current Ames code (Attachment A) contains lists of specific uses, such as catering, day care, engineering offices, beauty parlors, etc. The Code categorizes allowable uses into those that are Permitted, which are reviewed through an administrative process ($25 fee), and those that are Special, which are reviewed through a public process by the Zoning Board of Adjustment ($75 fee). The Code also contains a prohibited uses section, such as auto repair, firearm sales, kennels, restaurants, dance studios. The City applies certain standards to home occupations regarding limitations of up to 10 vehicle trips a day, class sizes, storage, equipment usage, etc. The new state law (Attachment B) does not allow cities to regulate home-based businesses by use (with some exceptions); but does allow them to regulate by intensity of use and potential impacts to a neighborhood including parking on the street and any noise, odor, or pollution emanating from the property in question. In order to comply with this new law, changes to the current City standards are needed. At the October 11 meeting, City Council reviewed options to modify the City standards and directed staff to allow home occupations by right, subject to specific criteria. This approach is fairly permissive in that it will allow for a wide range of home occupations that previously required review and approval by the Zoning Board of Adjustment as Special Home Occupations. The City Council previously determined that a two-classification system was not needed, and to establish criteria similar to the City’s current criteria for all 2 uses. No exception process to exceed the limitations is allowed. If a home occupation is not in compliance with the adopted criteria, the business must: 1) modify operations to come into compliance or 2) cease operations. PROPOSED ORDINANCE: Planning, Legal, and Inspections staff have worked together to substantially rework the home occupation regulations (Attachment C) to incorporate state requirements and modify the City’s current standards to fit the goal of having uniform standards for all types of home occupations as directed by Council. Key issues addressed with the proposed changes are: 1) intensity of use for a home occupation within buildings and yards, 2) employee limits, 3) customer limits, 4) parking requirements, and 5) prohibited uses. Additionally, child day care facilities are reclassified as a separate use from home occupations, although the standards remain the same as they are current applied through the home occupation process. Notable changes include: 1. Increasing the amount of the dwelling unit floor area that can be occupied by the business to not exceed 50%. (This change is to conform to state law in general.) 2. Allowing business activity in the rear or side yard when screened by a 6-foot-high fence. (This change is based upon allowances described in state law in general.) 3. Clarifying the criteria for parking of one vehicle on a driveway, but not storage of vehicles, equipment, trailers, etc. Parking on the street is only permissible for one vehicle related to the business. Customer parking on the street is not regulated, however we continue to have the standard that a second on-site parking space is required when two customers are likely present concurrently. (Previously the ZBA had some discretion regarding how to apply parking requirements, these changes are to create enforceable standards without a permit) 4. Establishing hours of operations from 6:30 a.m. to 7:00 p.m. if there are off-site employees or customers. (The ZBA could previously set hours of operation) 5. Setting a new maximum occupancy for employees and clients, including a maximum of five clients at a time. Employees limited to primary residents and up to two off-site employees coming to the site. (This change is to conform to state law in general.) 6. Modifying the list of prohibited uses. The list is increased from the current restrictions due to the lack of discretionary review process. (This change is due to a single review process and is allowed by state law in general.) 7. Moving the child day care regulations out of home occupations and into their own, separate section within Article 13 of the Zoning Ordinance due to their unique operationally aspects that would likely not meet home occupation standards. 3 Staff has also proposed to modify certain definitions as needed. This includes an update to the Garage/Rummage Sale definition to clearly define that a sale is for three days or less and only three are allowed in a year. PLANNING AND ZONING COMMISSION RECOMMENDATION: The Planning and Zoning Commission met on November 16, 2022, to consider the proposed text amendment. The Commissioners discussed the differences between the current and proposed code, the new day care regulations, and how Home Occupations would be regulated without permits. The Commission voted 5-0-0 to recommend that the City Council amend the Home Occupation as presented. ALTERNATIVES: 1. Approve on first reading a text amendment regarding home occupation regulations as presented in Attachment A. 2. Direct staff to prepare modifications to the proposed text amendment and return for Council consideration at a later date. 3. Do not approve the proposed text amendment. CITY MANAGER’S RECOMMENDED ACTION: The current City regulations regarding home occupations are unenforceable and must be changed to comply with the new state requirements. The Municipal Code has been rewritten so that it regulates impacts and externalities. The former application and review process has been eliminated. Uses will be allowed by right with no appeal process. Any home occupation that is not in compliance with the adopted criteria must alter how it operates or cease to operate. Citations for noncompliance will be Municipal Code Infractions and subject to fines. Staff has written the new regulations with an eye towards ease of enforceability and clarity of use. Consistent with City Council’s initial direction, where possible, existing standards were retained for ease of administration and consistency with prior experiences. The amended code sections modify the standards to comply with state law while still allowing the City to control for any negative impacts of home occupations through enforcement actions. Therefore, it is the recommendation of the City Manager that the City Council approve Alternative #1. 4 Attachment A Current Zoning Code Requirements for Home Occupations Sec. 29.1304. HOME OCCUPATIONS. This Section is intended to protect residential areas from potential adverse impacts of activities defined as home occupations; to permit residents of the community a broad choice in the use of their homes as a place of livelihood in the production or supplementing of personal/family income; to restrict incompatible uses; to establish criteria and develop standards for the use of residential structures or dwelling units for home occupations. It is not the intent to eliminate certain businesses and occupations that may be compatible with residential areas. (1) Permitted, Special and Prohibited Home Occupations. (a) The following are Permitted Home Occupations: (i) Home sewing or tailoring; (ii) Studios for painting, sculpturing, ceramics or other similar arts; (iii) Writing or editing; (iv) Telephone answering, scheduling of appointments, and other office activities where there are limited visits to the home; (v) Production of crafts such as handiwork, model-making, weaving, lapidary, and cabinet-making for the purpose of selling the product; (vi) Tutoring and giving lessons, limited to 4 students at any one time; (vii) Catering, home-cooking and preserving for the purpose of selling the product; (viii) Computer programming, services provided over the Internet and other similar activities; (ix) Mail order businesses where products are shipped directly from the supplier to the customer; and (x) Offices for architects and engineers. (xi) Home child care providers designated by the state department of human services as either Non-Registered Home, Child Development Home “A”, or Child Development Home “C” (1 Provider). (b) The following are Special Home Occupations: (i) Home child care providers designated by the state department of human services as either Child Development Home “B”, or Child Development Home “C” (2 Providers). Child care providers designated by the state department of human services as a “Licensed Center’ are not eligible for approval as a Home Occupation. (ii) Home adult day care for the care of no more than six adults (not permanent residents). (iii) Physicians and other licensed medical practitioners; (iv) Barbershops and beauty parlors; (v) Small repair shops (including small appliances, mower repair, blade sharpening and similar uses); (vi) Real estate and related services; (vii) Insurance agents; (viii) Home professional offices, lawyers and members of similar professions, and (ix) All other activities not included on either the permitted or prohibited list. 5 (c) The following are prohibited Home Occupations; (i) Animal hospitals; (ii) Dancing studios or exercise studios; (iii) Private clubs; (iv) Restaurants; (v) Stables and kennels; (vi) Repair or painting of motor vehicles, including motorcycles; and (vii) Firearm sales (d) Rummage/garage sales are not included in the listing of permitted, special or prohibited home occupations and are not defined as home occupations, provided no more than 3 sales per year are conducted. In addition, sale of garden produce is not defined as a home occupation provided no more than 3 sales per year are conducted. (2) Permit and Review Procedures. (a) Permitted Home Occupations. Applicants must submit an application to the Planning and Housing Department. The application will be reviewed by the staff, and the applicant will be notified of the decision of the Department. If the applicant is aggrieved, the decision may be appealed to the Zoning Board of Adjustment within 30 days. (b) Special Home Occupations. Applicants must submit a Special Home Occupation Permit to the City Clerk for consideration by the Zoning Board of Adjustment. Applications will then be reviewed by the Planning and Housing Department. A staff report will be prepared and sent to the Zoning Board of Adjustment. The Board may grant the Special Home Occupation Permit if it reasonably concludes from the evidence that the home occupation proposed will meet the criteria set out in Section 29.1304(3). The Board may, if warranted by the evidence, impose such additional conditions as may be deemed necessary to protect the legitimate use and enjoyment of neighboring properties. Any failure to obtain such Special Home Occupation Permit when required, or to comply with the criteria and conditions set out when issued, shall constitute a violation of this Section and shall be grounds for revocation of the Special Home Occupation Permit after notice and hearing by the Zoning Board of Adjustment. (c) Prohibited Home Occupations. No person will be allowed to operate prohibited home occupations. (3) Criteria. All home occupations must meet the following criteria: (a) Area to Be Used. (i) The activity shall be conducted in a manner that will not alter the normal residential character of the premises, or in any way cause a nuisance to adjoining residents, nor shall there be any structural alteration to accommodate the occupation. There should be no emission of smoke, dust, odor, fumes, glare, noises, vibration, electrical or electronic disturbances detectable at the lot line that would exceed that normally produced by a single residence. Special noise exceptions will be allowed for day care homes due to the nature of the clients using the facility. (ii) The activity shall be located within the principal building or within an accessory structure. It shall occupy no more than 25% of the total floor area of the residence and shall not exceed 400 square feet of an accessory building. Exception: For family day care homes, the entire dwelling unit may be used to serve the various 6 needs of day care (e.g., kitchen, bathroom, napping rooms, play areas, etc.). However, the day care can provide care to no more than one person per 35 square feet of the total dwelling unit, exclusive of baths, hallways, closets, kitchens, and dining areas. The dining area may be included in the square footage calculation if used by day care participants for activities other than meals. (b) Signs. Any sign utilized at the home occupation shall be limited to one flush-mounted sign on the main residential structure, which shall not exceed one square foot in area. Such sign shall not be lighted and nonreflecting materials shall be used. The legend shall show only the name of the occupant and the type of occupation. Color shall be consistent with the residential character. (c) Equipment. There shall be no mechanical equipment used except as customary for domestic household purposes. Any merchandise or stock in trade sold, repaired or displayed shall be stored entirely within the residential structure or in any accessory building. No storage is to be visible from lot lines. (d) Employment. The activity shall employ only members of the household residing in the dwelling unless approval for the employment of up to two (2) non-family members is granted by the Zoning Board of Adjustment. (e) Traffic. The activity shall not generate significantly greater traffic volumes than would normally be expected in a residential area. Not more than 10 vehicular visits per day shall be allowed. An exception to the number of visits allowed per day may be permitted for family day care homes and adult day care due to the number of children or adults allowed on-site and the need for parent or caregiver contact during the day. The delivery and pick up of materials or commodities to the premises by commercial vehicles shall not interfere with the delivery of other services to the area. (f) Parking Criteria. (i) Only one delivery vehicle associated with the activity may be parked on the street near the premises for not more than 4 consecutive hours. (ii) One additional on-site parking space is required above the normal parking requirement where 2 or more clients are likely to visit the premises concurrently. (iii) No more than 4 client vehicles during any given hour shall be allowed on the site. This requirement shall not be construed to prohibit occasional exceptions for such events as meetings, conferences, demonstrations, or similar events that are in no way a nuisance to adjoining residences. (g) Class Size. If the home occupation is the type in which classes are held or instructions given, there shall be no more than 4 students or pupils at any given time. The Board may approve up to 6 students if it finds that the additional students will not generate additional traffic. Day-care homes may have up to 6 children or adults at a time. Additional children or adults will require a Special Home Occupation Permit for a day- care center. (h) Number of Home Occupations. The total number of home occupations within a dwelling unit is not limited, except that the cumulative impact of all home occupations conducted within the dwelling unit shall not be greater than the impact of one home occupation. This will be determined by using the home occupation criteria. (4) Family Day Care in Multifamily Dwellings. In addition to the criteria of Section 29.1304(3), Family Day Care in multifamily dwellings shall comply with the following additional criteria. 7 (a) A defined outdoor play area is available on-site that provides not less than 75 square feet per child based on the maximum number of children that will be attending the day care at any given time, or a public or neighborhood park is located within 300 feet of the site. This provision only applies to day care provided to children five years of age and older. (b) An area designated and posted for guest parking is provided on the site; or at least one parking space must be posted and reserved for use of the day care operation only. Parking spaces otherwise required to meet minimum parking requirements for the residents may not count toward the required guest or reserved parking spaces. (c) The day care operator must provide evidence that the owner of the multifamily building has no objections to the day care operation, and that he or she agrees to comply with the required guest or reserved parking provisions. 8 Attachment B Newly Adopted State Code Regulating Home-Based Businesses Iowa Code Sec. 414.33 1. For the purposes of this section: a. “Goods” means any merchandise, equipment, products, supplies, or materials. b. “Home-based business” means any business for the manufacture, provision, or sale of goods or services that is owned and operated by the owner or tenant of the residential property on which the business operates. c. “No-impact home-based business” means a home-based business for which all of the following apply: (1) The total number of on-site employees and clients does not exceed the city occupancy limit for the residential property. (2) The business activities are characterized by all of the following: (a) The activities are limited to the sale of lawful goods and services. (b) The activities do not generate on-street parking or a substantial increase in traffic through the residential area. (c) The activities occur inside the residential dwelling or in the yard of the residential property. (d) The activities are not visible from an adjacent property or street. 2. The use of a residential property for a home-based business is a permitted use. However, this subsection does not supersede any of the following: a. A deed restriction, covenant, or agreement restricting the use of land. b. A master deed, bylaw, or other document applicable to a common interest ownership community. 3. A city shall not prohibit a no-impact home-based business or otherwise require a person to apply, register, or obtain any permit, license, variance, or other type of prior approval from the city to operate a no-impact home-based business. 4. A city may establish reasonable regulations on a home-based business if the regulations are narrowly tailored for any of the following purposes: a. The protection of the public health and safety, including rules and regulations related to fire or building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, pollution, or noise control. b. Ensuring that the business is all of the following: (1) Compatible with residential use of the property and surrounding residential use. (2) Secondary to the use of the property as a residence. (3) Complying with state and federal laws and paying applicable taxes. c. Limiting or prohibiting the operation of a home-based business for the purposes of selling alcoholic beverages or illegal drugs, operating or maintaining a structured sober living home, creating or selling pornography, providing nude or topless dancing, or operating any other adult-oriented business. 5. A city shall not require as a condition of operating a home-based business that the property be rezoned for commercial use or that the business owner install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with not more than two dwelling units. 9 6. In any proceeding alleging that a city regulation does not comply with this section, the city that enacted the regulation must establish by clear and convincing evidence that the regulation complies with this section. ORDINANCE NO. AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING SECTION 29.201, BY REPLEALING AND REPLACING SECTION 29.1304, AND BY ENACTING A NEW SECTION 29.1304A THEREOF, FOR THE PURPOSE OF REGULATING HOME OCCUPATIONS, 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 29.201, by repealing and replacing Section 29.1304, and by enacting a new Section 29.1304A as follows: “Sec. 29.201. DEFINITIONS. . . . (13)Animal Boarding House means a place or establishment other than an animal shelter where animals not owned by the proprietor are sheltered, fed, and watered in return for consideration. (98)Home Occupation means an occupation, profession, activity, or use conducted for financial gain or profits in a dwelling unit or on a residential property that is clearly secondary to the residential use of the dwelling unit or property, does not alter the exterior of the dwelling unit, or affect the residential character of the property or the neighborhood, and does not employ more than 2 persons, not including resident(s) of the dwelling. . . . Sec. 29.1304. HOME OCCUPATIONS. (1)Purpose. This Section is intended to protect residential areas from potential adverse impacts of activities defined as Home Occupations; to permit residents of the community a broad choice in the use of their homes as a place of livelihood in the production or supplementing of personal/family income; to restrict any negative impacts on surrounding properties; and to establish criteria and develop standards for the use of residential structures or dwelling units for Home Occupations. (2)Definitions. (a)Clients and Customers are visitors to a Home Occupation who are engaging the services offered by the Home Occupation or who are purchasing items sold by the Home Occupation. Clients and customers are not residents of the dwelling Item No. 25 where the Home Occupation is located and are not employed by the Home Occupation. (3) Regulation. (a) Home Occupations are an allowed use, subject to conformance with all codes and standards of the Ames Municipal Code. No permit or license is required. (b) A Home Occupation shall be operated and maintained in conformance with the criteria set forth in this section. (4) Criteria. (a) All Home Occupations must comply with City, County, and State regulations for public health and safety, including rules and regulations related to fire and building codes, health and sanitation, transportation, or traffic control, solid or hazardous waste, pollution, or noise control. (b) Any Home Occupation that does not comply with all of the criteria in this section is prohibited. (c) All Home Occupations must comply with the following requirements: (i) Operation, Impact, and Nuisance. a. The Home Occupation operation shall not alter the structure so that it is no longer a dwelling unit. b. The activity shall be conducted in a manner that will not alter the normal residential character of the premises. c. The use shall be compatible with the residential use of the property and with the surrounding residential uses. d. There shall be no emission of smoke, dust, odor, fumes, glare, noises, vibration, or electrical or electronic disturbances detectable at the lot line that would exceed what is normally produced by the residential use of a dwelling unit. e. Hours of operation for employees, clients/customers, and deliveries are to be between the hours of 6:30 a.m. and 7:00 p.m. (ii) Area Limitations: a. Buildings. (1) The Home Occupation must occupy less than 50% of the gross floor area of the dwelling unit but may occupy 50% or more of the gross floor area of an accessory structure. (2) Other structures on the property may be used for the Home Occupation, but less than 50% of the sum of the gross floor area of all buildings may be occupied by the business. (3) The gross floor area calculation shall not include attics or detached buildings intended for animal use (chicken coops, dog houses, etc.). (4) All zoning district requirements for primary structures, detached garages, and accessory structures apply. b. Yard. (1) Home Occupation activity in a yard is prohibited unless it is: (i) In a side or rear yard and (ii) Behind a fence that is: 1. Solid and opaque, and 2. A minimum of 6 feet high. (2) The Home Occupation must occupy less than 25% of the fenced yard area, in addition to the space used in (a)(1). (3) Use of a front yard or a street side yard for Home Occupation purposes is prohibited. (4) Use of a yard may be restricted by other City Codes and zoning standards, such as Outdoor Storage. (iii) Signage. a. Any sign utilized at the Home Occupation shall be limited to one flush-mounted sign on the main residential structure, which shall not exceed one square foot in area. b. Such sign shall not be lighted and nonreflecting materials shall be used. c. The legend shall show only the name of the occupant and the type of occupation. (iv) Traffic. a. Not more than 10 vehicular trips related to the business per day shall be allowed. A trip to and from the Home Occupation location shall count as one trip. b. The maximum number of trips shall include those taken by employees, clients/customers, and deliveries. c. The delivery and pick up of materials or commodities to the premises by commercial vehicles shall not interfere with the delivery of other services to the area. (v) Parking Criteria. a. A property with a Home Occupation shall meet all the standards for parking and driveways in Sec. 29.406, including but not limited to, the minimum number of required parking spaces, paving, and location requirements. b. Trailers, inoperable vehicles, and other Home Occupation-related equipment shall not be stored on the driveway. One operable company vehicle is allowed to park in the driveway. c. Only one delivery vehicle associated with the activity may be parked on the street near the premises for not more than 4 consecutive hours. d. One additional on-site parking space is required above the normal parking requirement where 2 or more clients/customers are likely to visit the premises concurrently. e. No more than 4 client or customer vehicles related to the Home Occupation during any given hour shall be allowed on the site. f. On street parking of equipment, vehicles, trucks, and trailers related to or used for the home occupation is prohibited, with the exception of one vehicle related to the home occupation that may be parked on the street. (vi) Maximum Occupancy of the Dwelling Unit for Employees and Clients/Customers. a. There is no limitation on primary residents as employees. b. No more than two non-residents of the dwelling may be employed by the Home Occupation. c. Employees arriving at the site for work that occurs either on-site or off-site are included as non-resident employees. d. The maximum number of clients/customers at any one time shall not exceed four. e. An exception to the maximum occupancy limitation is permitted for exhibitions of goods or sales of goods that occur for three days or fewer when the occurrence is less than three times a year. (vii) Number of Home Occupations. a. The total number of Home Occupations within a dwelling unit is not limited. b. The cumulative impact of all Home Occupations conducted within the dwelling unit shall not exceed the criteria in this section. (5) Rummage/Garage Sales. (a) A rummage/garage sale is a sale of household goods and belongings held either outdoors or in a garage. (b) Rummage/garage sales are not Home Occupations, provided the following: (i) The sale does not occur over more than three consecutive days. (ii) No more than three sales per year are conducted. (iii) The maximum number of sales per year is not contingent upon the length of any sale. The number of sales may not increase beyond three by shortening the length of each sale. (6) Prohibited Uses. In addition to Home Occupations that do not comply with the criteria, the following uses are prohibited for Home Occupations: (a) Alcohol sales (b) Adult-oriented businesses, including: (i) Creating or selling pornography (ii) Providing nude or topless dancing (c) Animal boarding houses, kennels, stables, and veterinary hospitals (i) Exception. An in-home animal boarding house is allowed as a Home Occupation for the boarding of up to six (6) animals. Use of the yard for the keeping of boarded animals is not permitted as part of an in-home animal boarding house. (d) Dancing studios or exercise studios (e) Private clubs (f) Restaurants and bars (g) Repair or painting of motor vehicles (including motorcycles and boats) or of any trailer, camper, etc., pulled by a motor vehicle (h) Firearm training or instruction (i) Shooting ranges (j) Welding or machine shop (k) Dispatch service with cars on-site (l) Dry cleaners (m) Funeral homes or mortuaries (n) Medical and dental offices (o) Equipment rental (p) Outdoor storage or salvage businesses (q) Towing Sec. 29.1304A. CHILD DAY CARE FACILITIES, HOME-BASED. (1) Regulation. A Day Care operated within a dwelling unit that includes a primary resident of the home as an employee is allowed without a permit when it is licensed by the State of Iowa as a Type “A” (e.g., up to six children) or Type “C” 1 adult (e.g., up to eight children). (2) A Day Care licensed by the State as a Type “B” or a Type “C” 2 adults or any other type of Day Care requires a Special Use Permit per Section 29.1503. The applicable criteria for a Special Use Permit is listed in Section 29.1503(5). (3) Day Care Centers are not a home-based Child Care Facility. (4) Dedicated Area. For Family Day Care homes, the entire dwelling unit may be used to serve the various needs of day care (e.g., kitchen, bathroom, napping rooms, play areas, etc.) However, the Day Care can provide care to no more than one person per 35 square feet of the total dwelling unit, exclusive of baths, hallways, closets, kitchens, and dining areas. The dining area may be included in the square footage calculation if used by Day Care participants for activities other than meals. (5) Parking and Traffic. Each permitted Day Care must meet and maintain on-site parking to minimum requirements of the Zoning Ordinance. The Board shall consider the proposed parking, along with drop off and pick up, as part of their review to determine if traffic levels and parking are compatible with the area for any Day Care requiring a Special Use Permit. The Board may apply conditions to any Special Use Permits for parking and traffic control as allowed by Section 29.1503. (6) Family Day Care in Multifamily Dwellings. Child Care Facilities in multifamily dwellings shall comply with the following additional criteria. (a) A defined outdoor play area is available on-site that provides not less than 75 square feet per child based on the maximum number of children that will be attending the Day Care at any given time, or a public or neighborhood park is located within 300 feet of the site. This provision only applies to day care provided to children five years of age and older. (b) An area designated and posted for guest parking is provided on the site; or at least one parking space must be posted and reserved for use of the day care operation only. Parking spaces otherwise required to meet minimum parking requirements for the residents may not count toward the required guest or reserved parking spaces. (c) The Day Care operator must provide evidence that the owner of the multifamily building has no objections to the Day Care operation, and that he or she agrees to comply with the required guest or reserved parking provisions. …” 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 , 2023. ________________________________ ____________________________________ Renee Hall, City Clerk John A. Haila, Mayor ITEM#: 26 DATE: 01-10-23 DEPT: PW COUNCIL ACTION FORM SUBJECT: NORTH SUNSET RIDGE SANITARY SEWER (798 N. 500th AVENUE) BACKGROUND: City Council approved a contract rezoning agreement for adoption of the Master Plan for North Sunset Ridge Subdivision (798 N. 500th Avenue) on July 26, 2022. It will be necessary to construct an oversized 12” sanitary sewer through the North Sunset Ridge Subdivision to serve the land to the west that is designated for future growth in Ames Growth Plan 2040. The contract rezoning agreement includes a cost sharing provision for this sewer where the developer paid for the project design and will pay for a proportionate share of the construction based upon the equivalent costs of a standard 8” sanitary sewer. The remaining construction expenses are considered “oversizing” costs for the City and will be financed through by American Rescue Plan Act (ARPA) funds. The project will consist of the installation of 3,500 linear feet of 12” sanitary main. Due to parts of the sanitary sewer line (approx. 340 linear feet) being placed on a parcel in the county, staff has been working with Story County to obtain a conditional use permit as required by the County’s land development (zoning) codes. Following receipt of construction bids, Ames and Story County staff walked the site again on December 28 to determine tree removal needs if the sewer were to be directional drilled. Story County has issued the conditional use permit with no tree mitigation requirement due to an “insignificant modifications” determination. This determination is a result of less than 15% of the natural area to be impacted. Bid Alternate A was included in the plans and specifications for directional drilling under the majority of the trees, however, some trees will be selectively removed to access the main trunk sewer for manhole placement at the connection point. On December 14, 2022, the bids for the project were received as follows: Bidder Base Bid Alternate A Total Bid Engineer’s Estimate $ 730,220.00 $ 31,689.00 $ 761,909.00 One bid submitted was declared nonresponsive, because the price for Alternate A was not included in the proposal form. Staff has reviewed the bids and determined that apparent low bid from Rognes Corp. is acceptable. Although the bid exceeds the Engineer’s Estimate, the bid is consistent with construction cost increases experienced with other projects in recent months. Considering the impact to existing trees and tree mitigation requirements of a conditional use permit, staff recommends awarding both the Base Bid and Alternate A. A summary of revenue and expenses is shown below: Available Estimated Hunziker Development Funds (per Agreement) $ 604,725 ARPA 1,065,000 $ 888,216.50 52,828.00 Construction Contingency 100,000.00 Engineering/Administration 94,000.00 Total $ 1,669,725 $ 1,135,044.50 The bid amount will allow the City to complete this project with the developer contribution amount plus only $530,319.50 in ARPA funds (out of $1,065,000 in ARPA funds available). The remaining ARPA funds ($534,680.50) will be re- assigned to other CIP projects that were budgeted under the Growth Plan 2040 Water and Sanitary Sewer programs. Additional ARPA projects are in the design phase with bids anticipated to be received in 2023. ALTERNATIVES: 1. a. Accept the report of bids for the North Sunset Ridge Sanitary Sewer project. b. Approve the final plans and specifications for this project. c. Award the North Sunset Ridge Sanitary Sewer project to Rognes Excavating, LLC of Ames, Iowa, in the amount of $ 941,044.50 2. Do not proceed with this project. CITY MANAGER’S RECOMMENDED ACTION: Accepting the report of bids, approving final plans and specifications, and awarding the construction contract will allow this project to proceed, which will provide the necessary public infrastructure for the proposed development and provide for utility extensions to serve future development. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as noted above. 1 ITEM#: 27 DATE: 01-10-23 DEPT: Transit COUNCIL ACTION FORM SUBJECT: REPORT OF BIDS FOR CYRIDE 2023 HVAC IMPROVEMENTS PROJECT BACKGROUND: On November 8, 2022, CyRide, in coordination with the Purchasing Division, released the 2023 HVAC Improvements Project. Plans and specifications called for replacing obsolete heating, ventilation, and air conditioning (HVAC) equipment for the area of the CyRide facility that serves the paint booth, body bay, and tire area, along with replacing the vehicle exhaust system in the body bay. There was also a single alternate to incorporate the new equipment into the facility’s existing control software. The following budget was established for this project: Funds Available Dollars State PTIG Funds $331,548 Local Grant Match $82,887 Total Grant Funds Available $414,435 Carry Over from the 2022 HVAC Improvement Project $38,335 Total Project Budget $452,770 Bids were due on December 14, 2022. No bids were received in response to the invitation to bid. CyRide staff contacted potential bidders and the on -call Architecture and Engineering (A&E) firm to determine why there were no responses to the invitation to bid. Following those discussions, staff believes there was a timing problem due to the significant number of other projects that prospective contractors were pursuing. The A&E firm has agreed to work with potential bidders to help highlight this project if were released for bid in the future. The Transit Board directed staff at their meeting on December 21, 2022, to prepare to rebid the project. Re-issuing the project would allow contractors another opportunity to bid without requiring changes to the overall project budget. ALTERNATIVES: 1. Accept the report of no bids and direct staff to prepare to rebid the project. 2. Accept the report of no bids and do not pursue the project. 2 CITY MANAGER’S RECOMMENDED ACTION: Accepting the report of no bids and preparing to rebid the project allows staff to proceed with the Transit Board’s directive, permitting the replacement of obsolete equipment that would improve the working environment for employees. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 , as described above. 1 ITEM#: 28 DATE: 01-10-23 DEPT: P&R COUNCIL ACTION FORM SUBJECT: REPORT OF BIDS FOR FURMAN AQUATIC CENTER POOL BASIN REPAINTING PROJECT BACKGROUND: This project includes preparing and painting the surface of all three basins at the Furman Aquatic Center. The facility was first painted in 2009 and again prior to the 2017 season. It is recommended to paint the basins every five to seven years to protec t the concrete from the chlorinated water. On November 22, 2022, Council issued a notice to bidders. Staff received and opened three bids on December 21, 2022 which are summarized below. BIDDER BASE BID Amusement Restoration Companies, Burnet, Texas $133,405 TMI Coatings, Inc., St. Paul, Minnesota $298,300 McGill Restoration Inc., Omaha, Nebraska $329,265 Jeff Bartley, Engineer with Water’s Edge Aquatic Design, Lenexa, Kansas, developed the specifications and prepared a cost estimate. Mr. Bartley will also provide progress review visits during various stages of the process including surface prep, painting progress, and final completion. The Engineer’s estimate for this project is as follows: Engineer’s Project Estimate: Crack Repair, Leveling, Prepare and Paint all Basins $202,000 Engineering $ 5,000 Total Project Estimate $207,000 Total funding available for this project is $231,404. Due to the disparity in the costs between the low bid and the two highest bids, staff is in the process of contacting references for Amusement Restoration Companies, Burnet, Texas. Staff has not received enough information at this time to make a recommendation. 2 ALTERNATIVES: 1. Accept the report of bids for the Furman Aquatic Center Pool Basin Repainting Project, and delay the award of contract. 2. Award a contract to Amusement Restoration Companies, Burnet, Texas, in the amount of $133,405 for the Furman Aquatic Center Pool Basin Repainting Project. 3. Award a contract to one of the other bidders. 4. Accept the report of bids and reject all bids for the Furman Aquatic Center Pool > CITY MANAGER’S RECOMMENDED ACTION: Furman Aquatic Center is a valuable amenity to the community, and it is important that any work that is completed at the facility is completed with excellence to ensure safety for all users. This project has a large impact on the facility and staff wants to ensure the contractor is qualified to complete the work. Staff would like more time to evaluate the lowest responsive bidder due to the disparity between the lowest and highest bids as well as the unfamiliarity with the contractor that submitted the lowest bid. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1. It is hoped that staff will be able to present a recommendation at the January 24 Council meeting. Caring People  Quality Programs  Exceptional Service 515.239.5160 main 5404 fax MEMO TO: Mayor and City Council FROM: John Joiner, Public Works Director DATE: January 6, 2023 SUBJECT: Public Hearing on Prairie View Industrial Area Connection Districts Staff requests that the City Council continue the public hearing for the Prairie View Industrial Area establishment of water and sanitary sewer connection districts until January 31, 2023. This will provide adequate time to meet the notification requirements set forth in the Code of Iowa. Item No. 29 ORDINANCE NO. AN ORDINANCE TO AMEND CHAPTER 28, UTILITIES, DIVISION 1, ELECTRIC OF THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY ENACTING A NEW SECTION 28.106 AND AMENDING SECTION 28.108 FOR THE PURPOSE OF COMMERCIAL ELECTRIC VEHICLE CHARGING RATE AND INDUSTRIAL TIME-OF-USE ELECTRIC RATES AND CHARGES; REPEALING ANY AND ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH CONFLICT; AND ESTABLISHING AN EFFECTIVE DATE. BE IT ENACTED, by the City Council for the City of Ames, Iowa, that: Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by enacting a new Section 28.106 and amending section 28.108 for the purpose of commercial electric vehicle charging time-of-day rate and industrial time-of-use electric rates and charges as follows: “… Sec. 28.105. COMMERCIAL RATE. … Sec. 28.106. COMMERCIAL ELECTRIC VEHICLE CHARGING RATE. (1)Availability.The “Commercial Electric Vehicle Charging Rate” is solely for the charging of electric vehicles. The rate shall be voluntary for any non-residential customer whose consumption in any billing period exceeds 10,000 kWh, or whose metered demand at any time exceeds 55 kVA. Any customer who elects the Commercial Electric Vehicle Charging Rate shall not switch rates more than once in a period of twelve (12) months. Any customer on Commercial Electric Vehicle Charging Rate who has a metered demand of less than 55 kVA, or a consumption of less than 10,000 kWh, for twelve (12) consecutive months, shall be changed to the Small Commercial Rate. (2)Intent:Electric Services is a summer peaking electric utility, and as such, the cost to deliver electricity is generally most expensive during hours of greatest demand. The utility benefits when large electric users reduce their demand during these times. A time-of-day rate is a pricing strategy whereby Electric Services may vary the price of electricity depending on the time-of-day it is delivered to the customer. Energy pricing can encourage the customer to use electricity during times of low demand and discourage use during the peak times of the day. Time-of-day pricing allows Electric Services to better control costs and mitigate any negative system impacts related to times of peak demand. Additionally, offering off-peak rates encourages broader adoption of electric vehicles by allowing low-cost, off-peak energy for customer vehicle charging. (3)Definitions: (a) Premium Hours: Monday through Friday between the hours of 9:00 am and 9:00 pm, excluding federally observed Holidays: (b) Economy Hours: All remaining hours (c)Billing Demand: The “billing demand” shall be the greater of: (i) The peak fifteen (15) minute demand measured during the premium hours of the current monthly billing period; (ii) Thirty percent (30%) of the peak fifteen (15) minute demand measured during the economy hours of the current monthly billing period; (iii) Seventy-five percent (75%) of the greatest billing demand for the summer period during the prior eleven (11) billing periods; (iv) Sixty percent (60%) of the greatest billing demand during the prior eleven (11) billing periods; (v) 40 kVA. (4)Rate Per Billing Period: For each monthly billing period, a customer participating in the Commercial Electric Vehicle Charging Rate shall be charged: (a) the Service Charge of two hundred fifty dollars ($250.00). (b) the Demand Charge and the Energy Charge for the billing period as follows: (i) for bills mailed on or between July 1 and October 31 (summer period), a customer shall be charged a demand charge of $10.71 per kVA of billing demand (ii) for bills mailed on or between November 1 and June 30 (winter period), a customer shall be charged a demand charge of $8.01 per kVA of billing demand (iii) a customer shall be charged an energy charge of: $0.12 per kWh during “premium” hours $0.04 per kWh during “economy” hours (c) all charges above shall also be subject to the applicable Energy Rate Adjustment (ERA) per Sec. 28.102. Sec. 28.107. INDUSTRIAL RATE. … Sec. 28.108. INDUSTRIAL TIME-OF-USE ELECTRIC RATE AND CHARGES. (1)Availability:The Industrial Time-of-Use Electric Rate shall be voluntary for any customer whose metered demand at any time exceeds 2,500 kVA. Service under this rate schedule is billed on a Time-of-Use basis as provided under these rules. The Industrial Time-of-Use Electric Rate is an alternative to Section 28.107 (1) Availability, at the customer’s discretion. Customers opting for inclusion on Industrial Time-of-Use Electric Rate are required to remain on the rate for a period no less than twelve (12) consecutive calendar months. (2)Intent:Electric Services is a summer peaking electric utility, and as such, the cost to deliver electricity is generally most expensive and detrimental to generation and distribution systems during hours of greatest demand. The utility benefits when large electric users are encouraged to reduce their demand during these times. A Time-of-Use Rate is a pricing strategy whereby Electric Services may vary the price of electricity depending on the time-of-day it is delivered to the customer. Prices encourage the customer to use electricity during times of low demand and discourage use during the peak times of the day. Time-of-Use (TOU) pricing allows Electric Services to better control costs and mitigate any negative system impacts related to times of peak demand. (3)Definitions: (a)Time-of-Use:A specifically identifiable period of time during a twenty-four- hour day used for establishing a pricing strategy aimed at reducing the overall demand for electricity. (b)Peak: The greatest fifteen (15) minute demand for electricity measured during the current billing period. (c)Billing Demand: Highest metered kilovolt-amp (kVA) electric use, in a billing period measured between the hours of 3pm and 8pm Monday through Friday. (d)Holidays: Federally observed Holidays. (e)On-Peak Energy: Electricity, measured in kilowatt hours, used Monday through Friday between the hours of 8:00 am and 8:00 pm. (f)Off-Peak Base Energy: Electricity, measured in kilowatt hours, used Monday through Friday between the hours of 8:00 pm and 8:00 am, and all-day Saturday, Sunday, and Holidays, up to the established monthly Billing Demand. (g)Off-Peak Time-of-Use Energy: Electricity, measured in kilowatt hours, used Monday through Friday between the hours of 8:00 pm and 8:00 am, and all-day Saturday, Sunday, and Holidays, in excess of the established monthly Billing Demand (h)Summer period: Bills mailed on or between July 1 and October 31. (i)Winter period: Bills mailed on or between November 1 and June 30. (4)Rate Per Billing Period: For each monthly billing period, a customer participating in the Industrial Time-of-Use Electric Rate shall be charged: (a) the Service Charge of two hundred fifty dollars ($250.00); (b) the Demand Charge and the Energy Charge for the energy consumption during the billing period as follows: (i) for bills mailed on or between July 1 and October 31 (summer period): 1) the Billing Demand times the billing rate of $10.40 per kVA, and 2) the On Peak, Energy times the billing rate of $0.0644 per kWh, 3) the Off Peak, Base Energy times the billing rate of $0.0644 per kWh, 4) the Off Peak, Time-of-Use Energy times the billing rate of $0.04 per kWh, (ii) for bills mailed on or between November 1 and June 30 (winter period): 1) the Billing Demand times the billing rate of $7.80 per kVA, and 2) the On Peak, Energy times the billing rate of $0.0644 per kWh, 3) the Off Peak, Base Energy times the billing rate of $0.0644 per kWh, 4) the Off Peak, Time-of-Use Energy times the billing rate of $0.04 per kWh, (c) the applicable Energy Cost Adjustment (ECA) per Sec. 28.102, and (d) any applicable bill impacts of Section 28.107 (3) Billing Demand, (4) Minimum Bill, (6) Service Facilities, (7) Excess Facilities, (8) Primary Service, and (9) Conditions. (5) Interruptible Option -Availability:Service under this rate shall be available for customers with monthly demands of 2,500 kilovolt-amps (kVA) or greater. Service under this rate schedule is interruptible and customers must agree to interrupt electric service as provided under these interruptible rate rules. (a) A minimum interruptible load of 500 kVA is required to qualify for interruptible service. (b) Electric Services shall verify Customer compliance with this requirement through the use of customer-specific interval demand meters. (c) Any customer eligible for the interruptible rate who wishes to participate shall establish an interrupt amount based on their previous summer’s average peak kVA demand (the average billed demand of bills mailed in July, August, September, and October). (d) The interrupt amount shall be agreed upon by the customer and City of Ames Electric Services. (e) Load interruptions are only requested during the months of June, July, August, and September. (f) Customer shall be given a minimum of 4 hours notification on the day of interruption. (g) Customer must interrupt at the agreed upon elected amount between the hours of 3:00 pm and 8:00 pm, or shorter duration as determined by the City. (h) Customer shall not be interrupted on more than three consecutive days, and no more than five (5) times in a billing period. (i) Customer credits for participating in the interruptible rate option shall be applied to the customer’s bills mailed out in July, August, September, and October. Customer participation credits are applied irrespective of a request to interrupt. (j) Any customer on this rate will be given a credit of $2.60 per elected kVA as a participation incentive on bills mailed out in July, August, September, and October. (k) In addition to the participation credit, a customer will be given a compliance credit of $2.60 per elected kVA for successfully lowering its demand by at least the amount of the elected interruptible demand. The amount of participation credit applied to the billing demand is based upon the largest interruption response of the billing period. Failure to curtail the full elected amount will result in no compliance credit. (l) In the event a participating customer is unable to interrupt load, a non- compliance penalty will be charged to the billing period’s demand in the amount of $12.00 per kVA for each kVA short of the elected amount. The amount of noncompliance charge applied to the billing demand is based upon the largest noncompliance of the billing period. The compliance credit is equal to the elected participation minus the amount of noncompliance. Such charge shall be in addition to any charges otherwise payable to City of Ames Electric Services for electric service under this rate schedule. The payment of this noncompliance penalty shall not be considered a substitute for any other remedy available to Electric Services including, but not limited to, reduction of service. Sec. 28.109. STREET AND SECURITY LIGHTING RATE & INCIDENTAL UNMETERED ENERGY. … Sec. 28.110. RENEWABLE ENERGY BUYBACK RATES....” 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 , . ______________________________________ _______________________________________ Renee Hall, City Clerk John A. Haila, Mayor ITEM#: 52 DATE: 12-13-22 COUNCIL ACTION FORM SUBJECT: ELECTRIC RATE MODIFICATIONS FOR ELECTRIC VEHICLE CHARGING OF COMMERCIAL VEHICLES AND INTERRUPTIBLE RATE BACKGROUND: City staff has prepared an ordinance to modify the Municipal Code regarding electric rates. The ordinance will address modifications in two areas: Commercial electric vehicle (EV) charging, and industrial user time-of-use. These rate changes were discussed at the EUORAB meeting in October 2022. EUORAB supports these changes and voted to send them to the City Council for approval. Commercial EV Charging Rate: This rate addition to the Ames Municipal Code is intended to promote off-peak charging to encourage broader adoption of electric vehicles, reduce impacts of on-peak energy demands, and capitalize on lower off -peak energy rates. Off-peak charging benefits all ratepayers by selling more energy during periods that do not contribute to overall system peak. Currently, the existing rate structure charges 6.5 cents per kWh. This proposed rate offers a discount in the demand cost for energy used between 9 p.m. and 9 a.m., when energy prices per kWh are lower than market energy purchased during the daylight hours. Under this rate, energy used during the overnight off-peak hours is subject to an “Economy Rate” of 4 cents per kWh; On-peak energy is charged the full demand charge that is applied to all commercial electric customers and a “Premium Rate” of 12 cents per kWh. An example of a potential customer that would benefit from a rate of this type is CyRide. CyRide is scheduled to take delivery of two new, all-electric buses at the beginning of 2023. Charging buses during the day would add to the utility’s peak demand. The rate proposed here will benefit both CyRide and the electric utility by encouraging off peak charging. Other commercial customers of Ames which desire to convert their fleet to electric can also apply for this rate and gain operational cost savings while reducing greenhouse gas emissions. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Economy Premium Hour Ending Economy Rates Premium Rates $0.04 per kWh $0.12 per kWh 30% of peak demand charge Full peak demand charge Industrial Time-of-Use Electric Rate: This rate is an alternative to the City’s Industrial Electric Rate. The proposed changes to the rate align the existing Industrial Time -of-Use (TOU) Electric Rate with an optional Interruptible Rate. The rate offers two mechanisms to help reduce the utility’s overall annual peak. First, the TOU rate encourages large industrial customers to shift their peak energy usage outside the utility’s peak window of 3 p.m. to 8 p.m. Second, customers on this rate have the additional option to elect a partial interruptible load agreement. This is where the utility may require the customer to reduce load further during times of peak demand. Ames has one customer that has chosen this rate structure. The proposed changes to the Municipal Code language will align the Industrial Time-of-Use rate with the Interruptible Option Pilot, and convert the Pilot into a permanent part of the municipal code. ALTERNATIVES: 1. Approve first reading of an ordinance making changes to Municipal Code, Chapter 28 as proposed by City Staff and recommend to Council for approval. 2. Do not approve changes to Municipal Code, Chapter 28. CITY MANAGER’S RECOMMENDED ACTION: The proposed rate updates will help promote off-peak load growth of electric sales and assist CyRide in transitioning its fleet to electric vehicles. Additionally, aligning the industrial time-of-use rate with the interruptible option will encourage large users to shape their load in a beneficial way for the utility while saving the customer money on its energy bill. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as stated above. ORDINANCE NO. 4483 AN ORDINANCE TO AMEND CHAPTER 28, UTILITIES, DIVISION 1, ELECTRIC OF THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY ENACTING A NEW SECTION 28.106 AND AMENDING SECTION 28.108 FOR THE PURPOSE OF COMMERCIAL ELECTRIC VEHICLE CHARGING RATE AND INDUSTRIAL TIME-OF-USE ELECTRIC RATES AND CHARGES; REPEALING ANY AND ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH CONFLICT; AND ESTABLISHING AN EFFECTIVE DATE. BE IT ENACTED, by the City Council for the City of Ames, Iowa, that: Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by enacting a new Section 28.106 and amending section 28.108 for the purpose of commercial electric vehicle charging time-of-day rate and industrial time-of-use electric rates and charges as follows: “… Sec. 28.105. COMMERCIAL RATE. … Sec. 28.106. COMMERCIAL ELECTRIC VEHICLE CHARGING RATE. (1) Availability. The “Commercial Electric Vehicle Charging Rate” is solely for the charging of electric vehicles. The rate shall be voluntary for any non-residential customer whose consumption in any billing period exceeds 10,000 kWh, or whose metered demand at any time exceeds 55 kVA. Any customer who elects the Commercial Electric Vehicle Charging Rate shall not switch rates more than once in a period of twelve (12) months. Any customer on Commercial Electric Vehicle Charging Rate who has a metered demand of less than 55 kVA, or a consumption of less than 10,000 kWh, for twelve (12) consecutive months, shall be changed to the Small Commercial Rate. (2) Intent: Electric Services is a summer peaking electric utility, and as such, the cost to deliver electricity is generally most expensive during hours of greatest demand. The utility benefits when large electric users reduce their demand during these times. A time-of-day rate is a pricing strategy whereby Electric Services may vary the price of electricity depending on the time-of-day it is delivered to the customer. Energy pricing can encourage the customer to use electricity during times of low demand and discourage use during the peak times of the day. Time-of-day pricing allows Electric Services to better control costs and mitigate any negative system impacts related to times of peak demand. Additionally, offering off-peak rates encourages broader adoption of electric vehicles by allowing low-cost, off-peak energy for customer vehicle charging. (3) Definitions: (a) Premium Hours: Monday through Friday between the hours of 9:00 am and 9:00 pm, excluding federally observed Holidays: (b) Economy Hours: All remaining hours (c) Billing Demand: The “billing demand” shall be the greater of: (i)The peak fifteen (15) minute demand measured during the premium hours of the current monthly billing period; (ii)Thirty percent (30%) of the peak fifteen (15) minute demand measured during the economy hours of the current monthly billing period; (iii)Seventy-five percent (75%) of the greatest billing demand for the summer period during the prior eleven (11) billing periods; (iv)Sixty percent (60%) of the greatest billing demand during the prior eleven (11) billing periods; (v) 40 kVA. (4) Rate Per Billing Period: For each monthly billing period, a customer participating in the Commercial Electric Vehicle Charging Rate shall be charged: (a) the Service Charge of two hundred fifty dollars ($250.00). (b) the Demand Charge and the Energy Charge for the billing period as follows: (i) for bills mailed on or between July 1 and October 31 (summer period), a customer shall be charged a demand charge of $10.71 per kVA of billing demand (ii) for bills mailed on or between November 1 and June 30 (winter period), a customer shall be charged a demand charge of $8.01 per kVA of billing demand (iii) a customer shall be charged an energy charge of: $0.12 per kWh during “premium” hours $0.04 per kWh during “economy” hours (c) all charges above shall also be subject to the applicable Energy Rate Adjustment (ERA) per Sec. 28.102. Sec. 28.107. INDUSTRIAL RATE. … Sec. 28.108. INDUSTRIAL TIME-OF-USE ELECTRIC RATE AND CHARGES. (1) Availability: The Industrial Time-of-Use Electric Rate shall be voluntary for any customer whose metered demand at any time exceeds 2,500 kVA. Service under this rate schedule is billed on a Time-of-Use basis as provided under these rules. The Industrial Time-of-Use Electric Rate is an alternative to Section 28.107 (1) Availability, at the customer’s discretion. Customers opting for inclusion on Industrial Time-of-Use Electric Rate are required to remain on the rate for a period no less than twelve (12) consecutive calendar months. (2) Intent: Electric Services is a summer peaking electric utility, and as such, the cost to deliver electricity is generally most expensive and detrimental to generation and distribution systems during hours of greatest demand. The utility benefits when large electric users are encouraged to reduce their demand during these times. A Time-of-Use Rate is a pricing strategy whereby Electric Services may vary the price of electricity depending on the time-of-day it is delivered to the customer. Prices encourage the customer to use electricity during times of low demand and discourage use during the peak times of the day. Time-of-Use (TOU) pricing allows Electric Services to better control costs and mitigate any negative system impacts related to times of peak demand. (3) Definitions: (a) Time-of-Use: A specifically identifiable period of time during a twenty-four- hour day used for establishing a pricing strategy aimed at reducing the overall demand for electricity. (b) Peak: The greatest fifteen (15) minute demand for electricity measured during the current billing period. (c) Billing Demand: Highest metered kilovolt-amp (kVA) electric use, in a billing period measured between the hours of 3pm and 8pm Monday through Friday. (d) Holidays: Federally observed Holidays. (e) On-Peak Energy: Electricity, measured in kilowatt hours, used Monday through Friday between the hours of 8:00 am and 8:00 pm. (f) Off-Peak Base Energy: Electricity, measured in kilowatt hours, used Monday through Friday between the hours of 8:00 pm and 8:00 am, and all-day Saturday, Sunday, and Holidays, up to the established monthly Billing Demand. (g) Off-Peak Time-of-Use Energy: Electricity, measured in kilowatt hours, used Monday through Friday between the hours of 8:00 pm and 8:00 am, and all-day Saturday, Sunday, and Holidays, in excess of the established monthly Billing Demand (h) Summer period: Bills mailed on or between July 1 and October 31. (i) Winter period: Bills mailed on or between November 1 and June 30. (4) Rate Per Billing Period: For each monthly billing period, a customer participating in the Industrial Time-of-Use Electric Rate shall be charged: (a) the Service Charge of two hundred fifty dollars ($250.00); (b) the Demand Charge and the Energy Charge for the energy consumption during the billing period as follows: (i) for bills mailed on or between July 1 and October 31 (summer period): 1) the Billing Demand times the billing rate of $10.40 per kVA, and 2) the On Peak, Energy times the billing rate of $0.0644 per kWh, 3) the Off Peak, Base Energy times the billing rate of $0.0644 per kWh, 4) the Off Peak, Time-of-Use Energy times the billing rate of $0.04 per kWh, (ii) for bills mailed on or between November 1 and June 30 (winter period): 1) the Billing Demand times the billing rate of $7.80 per kVA, and 2) the On Peak, Energy times the billing rate of $0.0644 per kWh, 3) the Off Peak, Base Energy times the billing rate of $0.0644 per kWh, 4) the Off Peak, Time-of-Use Energy times the billing rate of $0.04 per kWh, (c) the applicable Energy Cost Adjustment (ECA) per Sec. 28.102, and (d) any applicable bill impacts of Section 28.107 (3) Billing Demand, (4) Minimum Bill, (6) Service Facilities, (7) Excess Facilities, (8) Primary Service, and (9) Conditions. (5) Interruptible Option -Availability: Service under this rate shall be available for customers with monthly demands of 2,500 kilovolt-amps (kVA) or greater. Service under this rate schedule is interruptible and customers must agree to interrupt electric service as provided under these interruptible rate rules. (a) A minimum interruptible load of 500 kVA is required to qualify for interruptible service. (b) Electric Services shall verify Customer compliance with this requirement through the use of customer-specific interval demand meters. (c) Any customer eligible for the interruptible rate who wishes to participate shall establish an interrupt amount based on their previous summer’s average peak kVA demand (the average billed demand of bills mailed in July, August, September, and October). (d) The interrupt amount shall be agreed upon by the customer and City of Ames Electric Services. (e) Load interruptions are only requested during the months of June, July, August, and September. (f) Customer shall be given a minimum of 4 hours notification on the day of interruption. (g) Customer must interrupt at the agreed upon elected amount between the hours of 3:00 pm and 8:00 pm, or shorter duration as determined by the City. (h) Customer shall not be interrupted on more than three consecutive days, and no more than five (5) times in a billing period. (i) Customer credits for participating in the interruptible rate option shall be applied to the customer’s bills mailed out in July, August, September, and October. Customer participation credits are applied irrespective of a request to interrupt. (j) Any customer on this rate will be given a credit of $2.60 per elected kVA as a participation incentive on bills mailed out in July, August, September, and October. (k) In addition to the participation credit, a customer will be given a compliance credit of $2.60 per elected kVA for successfully lowering its demand by at least the amount of the elected interruptible demand. The amount of participation credit applied to the billing demand is based upon the largest interruption response of the billing period. Failure to curtail the full elected amount will result in no compliance credit. (l) In the event a participating customer is unable to interrupt load, a non- compliance penalty will be charged to the billing period’s demand in the amount of $12.00 per kVA for each kVA short of the elected amount. The amount of noncompliance charge applied to the billing demand is based upon the largest noncompliance of the billing period. The compliance credit is equal to the elected participation minus the amount of noncompliance. Such charge shall be in addition to any charges otherwise payable to City of Ames Electric Services for electric service under this rate schedule. The payment of this noncompliance penalty shall not be considered a substitute for any other remedy available to Electric Services including, but not limited to, reduction of service. Sec. 28.109. STREET AND SECURITY LIGHTING RATE & INCIDENTAL UNMETERED ENERGY. … Sec. 28.110. RENEWABLE ENERGY BUYBACK RATES. ...” 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 , . ______________________________________ _______________________________________ Renee Hall, City Clerk John A. Haila, Mayor Caring People  Quality Programs  Exceptional Service MEMO To: Mayor and City Council From: Kelly Diekmann, Planning & Housing Director Date: January 10, 2023 Subject: The Bluffs at Dankbar Farms Zoning Agreement Background: The City Council approved on December 13, 2022 a rezoning with Master Plan for a 105.62 acre site of which approximately 85.62 acres were zoned from Agricultural (A) to Suburban Residential Low Density (FS-RL) and to Suburban Residential Medium Density (FS-RM) with the remaining twenty acres maintaining its Agricultural (A) zoning designation. The Master Plan identifies areas to be zoned, the types of permitted development, and densities. The City requires that to complete a rezoning with a Master Plan, a Zoning Agreement is agreed to by the developer. As described in December 13, 2022 rezoning report, the Zoning Agreement assigns the amount of sewer capacity to each land use type based on density and projected usage. Attached is an unsigned zoning agreement for Council review. The developer will return a signed copy prior to the City Council meeting in order to complete the rezoning process. Item No. 31 1 REZONING AGREEMENT FOR THE BLUFFS AT DANKBAR FARMS DEVELOPMENT THIS AGREEMENT, made and entered into this _____ day of January, 2023, by and between R. Friedrich and Sons, Inc. and Friedrich Land Development Company, L.L.C. (hereinafter called the “Developers”), the City of Ames, Iowa (hereinafter called the “City”) its successors and assigns, both collectively being referred to as the “Parties,” WITNESSETH THAT: WHEREAS, the Parties hereto desire the improvement and development of three parcels 1 of real property, located within the vicinity of Cameron School Road and GW Carver Avenue (collectively referred to hereinafter as the “Site”) and legally described as: [See attached Exhibit ‘A’ for legal description.] WHEREAS, the Site has a Residential Neighborhood 3 (RN-3) and Commercial Core designation within the Ames Plan 2040 and is zoned currently as “A” Agricultural and the Developer is seeking rezoning of portions the Site to three different zoning designations: Floating Suburban – Residential Low Density (F-S RL), Floating Suburban – Residential Medium Density (F-S RM), and 20 acres of the site remaining as “A” Agricultural zoning. Zoning classifications shall be as set forth in the rezoning ordinance adopted by the City Council. WHEREAS, the City Council has determined that due to specific conditions that exist on or around the area proposed to be rezoned, or due to specific situations that require more careful consideration of how the layout and design of a site affects general health, 1 Tax parcels 05-20-400-310, 05-20-400-140 and 05-20-400-230 (gross acres in total approximately 106.63/net acres 90.03) S P A C E A B O V E R E S E R V E D F O R O F F I C I A L U S E Legal description: See page 7. Return document to: City Clerk, 515 Clark Avenue, Ames IA 50010 Document prepared by: Mark O. Lambert, City of Ames Legal Department, 515 Clark Ave., Ames, IA 50010 – 515-239-5146 2 safety and welfare, a Master Plan must be submitted as part of this rezoning request as set forth in Ames Municipal Code section 29.1507; and WHEREAS, the Developers have submitted a Master Plan (named “The Bluffs at Dankbar Farms”) in conformance with the requirements set forth in Ames Municipal Code section 29.1507(4); and WHEREAS Ames Municipal Code section 29.1507(5) requires approval of a zoning agreement when a Master Plan is required, and that all development of the Site comply with the Master Plan. NOW, THEREFORE, the Parties hereto have agreed and do agree as follows: I. MASTER PLAN ADOPTED The Master Plan, which is dated and is on file with the Department of Planning and Housing, is set forth at Attachment B and incorporated by reference in this agreement shall be the Master Plan for the Site. Developers agree that all development upon the Site shall comply with the Master Plan on file with the Department. Developers further agree that: (A) Water Infrastructure. The Site is within the Xenia Rural Water Service territory and Developer is solely responsible for development of water infrastructure to City of Ames standards as set forth in the Agreement for Water Service and Territory Transfer between the City of Ames and Xenia with an effective day of February 1, 2022, and recorded as Instrument No. 2022-01065. Developers are responsible for the cost and expense of coordinating with Xenia for verification of adequate water flow, water pressure, water mains, fire hydrants and all related improvements needed to meet City standards. (B) Sanitary Sewer Infrastructure. As described in the Pre Annexation Agreement adopted February 22, 2022, and filed with the Story County Recorder on May 16, 2022, as Instrument No. 2022-04677, sanitary sewer capacity to the Site is limited. Developers shall continue to be bound by the terms of said Pre- Annexation Agreement, subject to the following determinations made by the City Municipal Engineer, which shall constitute limitations on the development of the Site: a. Within the Site, land to the west of the Everest Street extension zoned as FS-RM and FS-RL allows for development of up to 211 homes based upon projected flows of 63,300 gallons per day and a peak hour wet weather flow of 0.256 mgd; and b. Within the Site, land to the east of the Everest Street extension of approximately 20 acres is planned for future development of commercial, 3 residential, and or religious/institutional use. The reserved allocation is for approximately 6 acres of area with commercial use with flows of 30,000 gallons per day and 0.121 mgd of peak hour wet weather flow. The approximate remaining 14 acres of land is for residential or equivalent use with flows of 15,000 gallons a day or .061 mgd of peak hour flow; and c. As set forth in §29.1507(5), the City Council has authority to allow for an amendment to the Master Plan for the purpose of reallocating reservation of sanitary sewer capacity, which is processed as a zoning map amendment. Nothing herein shall be construed as to require City Council approval of any master plan amendment or make any assurances to Developer that City Council is bound to make any master plan amendment. All future development intensity and uses must be consistent with the limitations set forth herein. The Municipal Engineer shall make all determinations of consistency with the sanitary sewer capacity limitations. II. NON-INCLUSION OF OTHER OBLIGATIONS The Parties acknowledge and agree that this Agreement is being executed to fulfill a specific requirement of section 29.1507(5) of the Ames Municipal Code. It is also understood that this Agreement supplements but does not replace or supersede any agreements made with the City or third parties. The Parties further acknowledge that all site development standards and permitting requirements continue to apply to the Site. The Parties understand that the Master Plan adopts a general conceptual plan for development, without review or approval of specific subdivision plats or site plans for development of the Site. The Parties therefore acknowledge that the Master Plan adoption does not anticipate or incorporate all the additional approvals or requirements that may be required to develop the Site properly and completely and does not relieve the developer of compliance with other provisions of the Ames Municipal Code, the Iowa Code, SUDAS, or other federal, state or local laws or regulations. III. BINDING EFFECT This Agreement shall be binding upon and insure to the benefit of the parties hereto, their heirs, successors and assigns and shall be recorded with the Recorder of Story County. Developers shall be jointly and severally liable to the City for each and every obligation imposed under the terms of this Agreement. 4 IV. MODIFICATIONS OF AGREEMENT Any modifications or changes to the Master Plan shall be undertaken in accordance with the process provided for in Ames Municipal Code section 29.1507(5). IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed effective as of the date first above written. (S i g n a t u r e s o n f o l l o w i n g p a g e ) 5 DEVELOPERS: . FRIEDRICH AND SONS, INC. Kurt W. Friedrich, STATE OF IOWA, COUNTY OF STORY, SS.: This instrument was acknowledged before me on ______________________, 2023, by Kurt W. Friedrich, as President of R. Friedrich and Sons, Inc. NOTARY PUBLIC FRIEDRICH LAND DEVELOPMENT Kurt W. Friedrich, STATE OF IOWA, COUNTY OF STORY, SS.: This instrument was acknowledged before me on ______________________, 2023, by Kurt W. Friedrich, as Manager of Friedrich Land Development Company, L.L.C. NOTARY PUBLIC 6 Passed and approved on ________________________, 2023, by Resolution No. 23-________ adopted by the City Council of the City of Ames, Iowa. CITY OF AMES, IOWA John A. Haila, Renee Hall, STATE OF IOWA, COUNTY OF STORY, SS.: This instrument was acknowledged before me on _______________________, 2023, by John A. Haila and Renee Hall, as Mayor and City Clerk, respectively, of the City of Ames, Iowa. NOTARY PUBLIC 7 LEGAL DESCRIPTION OF SITE – Exhibit ‘A’ The Northeast Quarter (NE¼) of the Southeast Quarter (SE¼) of Section Twenty (20), Township Eighty-Four (84) North, Range Twenty-Four (24) West of the 5th P.M., Story County, Iowa, EXCEPT a parcel of land containing approximately 3.6 acres described as: Commencing at the Northwest Corner (center of road) of the NE¼ of the SE¼ of Sec. 20- T84N-R24W of the 5th P.M., Story County, Iowa, thence East along the center of the road 521 feet, thence South 301 feet, thence West 521 feet to the West line of said NE¼ of the SE¼, thence North 301 feet to the place of beginning. EXCEPT the road right-of-way described in the Warranty Deed filed in the Office of the Story County Recorder, on April 7, 1982, and recorded in Book 196, Page 224. AND, West one-half of the Southeast Quarter of Section Twenty in Township Eighty-four North, Range Twenty-four West of the 5th P.M., Story County, Iowa, EXCEPT beginning at concrete monument located at center of Section Twenty, Township Eighty-four North, Range Twenty-four West of the 5th P.M., in Story County, Iowa, which is the Northwest Corner of the Southeast Quarter of said Section; thence South 0°30’ East a distance of 372.30 feet along the West line of said Southeast Quarter; thence North 89°30’ East a distance of 325.00 feet; thence South 66°41’ East a distance of 36.09 feet; thence North 84°40’ East a distance of 58.92 feet; thence South 39°45’ East a distance of 316.30 feet; thence North 0°09’ East a distance of 621.43 feet to the North line of said Southeast Quarter Section; thence West along the North line of Southeast Quarter Section a distance of 623.92 feet to the point of beginning. 8 PORTION OF THE BLUFFS AT DANKBAR FARMS MASTER PLAN – Exhibit ‘B’ DO NOT WRITE IN THE SPACE ABOVE THIS LINE, RESERVED FOR RECORDER Prepared by: Renee Hall City Clerk’s Office, 515 Clark Avenue, Ames, IA 50010 Phone: 515-239-5105 Return to: Ames City Clerk, P.O. Box 811, Ames, IA 50010 ORDINANCE NO. AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF AMES, IOWA, AS PROVIDED FOR IN SECTION 29.301 OF THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY CHANGING THE BOUNDARIES OF THE DISTRICTS ESTABLISHED AND SHOWN ON SAID MAP AS PROVIDED IN SECTION 29.1507 OF THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA; REPEALING ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH AND ESTABLISHING AN EFFECTIVE DATE BE IT HEREBY ORDAINED by the City Council of the City of Ames, Iowa; Section 1: The Official Zoning Map of the City of Ames, Iowa, as provided for in Section 29.301 of the Municipal Code of the City of Ames, Iowa, is amended by changing the boundaries of the districts established and shown on said Map in the manner authorized by Section 29.1507 of the Municipal Code of the City of Ames, Iowa, as follows: That the real estate, generally located at 3400 Cameron School Road and 5301 George Washington Carver Avenue is rezoned from “A” (Agricultural) to “FS-RL” (Suburban Residential Low-Density) and “FS-RM” (Suburban Residential Medium Density), as follows: Real Estate Description: Rezoning Tract 1 A TRACT OF LAND LOCATED IN THE SOUTHEAST QUARTER OF SECTION 20, TOWNSHIP 84 NORTH, RANGE 24 WEST OF THE 5TH P.M., CITY OF AMES, STORY COUNTY, IOWA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS BEGINNING AT THE NORTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE S00°07'56"E, 1324.70 FEET ALONG THE EAST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20 TO THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE N89°58'20"W, 1309.52 FEET ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20 TO THE SOUTHWEST CORNER OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE N00°09'34"W, 1316.31 FEET ALONG Item No. 31b THE WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20 TO THE SOUTHWEST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE N00°12'03"W, 947.18 FEET ALONG THE WEST LINE OF THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE N89°50'40"E, 325.37 FEET TO THE SOUTHWEST CORNER OF PARCEL 'Q' IN THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE S66°41'09"E, 35.81 FEET ALONG THE SOUTHERLY LINE OF SAID PARCEL 'Q'; THENCE N86°17'38"E, 58.70 FEET ALONG THE SOUTHERLY LINE OF SAID PARCEL 'Q'; THENCE S39°27'39"E, 316.30 FEET ALONG THE SOUTHERLY LINE OF SAID PARCEL 'Q' TO THE SOUTHEAST CORNER THEREOF; THENCE N00°26'28"E, 588.47 FEET ALONG THE EASTERLY LINE OF SAID PARCEL 'Q' TO THE SOUTH RIGHT-OF-WAY LINE OF CAMERON SCHOOL ROAD; THENCE S89°43'31"E, 687.59 FEET TO THE WEST LINE OF JAMISON SUBDIVISION; THENCE S00°09'24"E, 267.94 FEET ALONG SAID WEST LINE TO THE SOUTHWEST CORNER OF SAID JAMISON SUBDIVISION; THENCE S89°39'45"E, 275.48 FEET ALONG THE SOUTH LINE OF SAID JAMISON SUBDIVISION; THENCE S89°45'30"E, 245.57 FEET ALONG THE SOUTH LINE OF SAID JAMISON SUBDIVISION TO THE SOUTHEAST CORNER THEREOF; THENCE N00°09'30"W, 250.90 FEET TO THE SOUTH RIGHT-OF-WAY LINE OF CAMERON SCHOOL ROAD; THENCE S89°42'18"E, 52.50 FEET ALONG SAID SOUTH RIGHT-OF-WAY LINE; THENCE S00°09'30"E, 549.65 FEET; THENCE N89°44'23"W, 427.26 FEET TO THE BEGINNING OF A 112.50 FOOT RADIUS CURVE, CONCAVE SOUTHERLY; THENCE 12.87 FEET WESTERLY ALONG SAID CURVE, LONG CHORD BEARS S86°59'03"W, 12.86 FEET; THENCE S83°42'28"W, 59.01 FEET TO THE BEGINNING OF A 387.50 FOOT RADIUS CURVE, CONCAVE NORTHERLY; THENCE 44.32 FEET WESTERLY ON SAID CURVE, LONG CHORD BEARS S86°59'03"W, 44.29 FEET; THENCE S89°54'59"W, 247.28 FEET; THENCE S00°15'37"W, 125.27 FEET; THENCE S39°03'26"E, 447.96 FEET; THENCE S00°45'13"W, 221.06 FEET TO THE SOUTH LINE OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE N89°14'47"W, 60.14 FEET ALONG SAID SOUTH LINE TO THE POINT OF BEGINNING. PARCEL CONTAINS A COMBINED 76.06 ACRES (3,313,153 SQ. FT.) EXISTING ZONING: A (AGRICULTURE) REZONED: FS-RL (SUBURBAN RESIDENTIAL LOW DENSITY) Real Estate Description: Rezoning Tract 2 A TRACT OF LAND LOCATED IN THE NORTH HALF OF THE SOUTHEAST QUARTER OF SECTION 20, TOWNSHIP 84 NORTH, RANGE 24 WEST OF THE 5TH P.M., CITY OF AMES, STORY COUNTY, IOWA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE S89°14'47"E, 60.14 FEET ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20 TO THE POINT OF BEGINNING; THENCE CONTINUING S89°14'47"E, 449.04 FEET ALONG SAID SOUTH LINE TO THE BEGINNING OF A 700.00 FOOT RADIUS CURVE, CONCAVE EASTERLY; THENCE NORTHERLY 94.65 FEET ALONG SAID CURVE, LONG CHORD BEARS N04°27'19"E, 94.58 FEET; THENCE N08°19'44"E, 310.85 FEET TO THE BEGINNING OF A 1000.00 FOOT RADIUS CURVE, CONCAVE WESTERLY; THENCE NORTHERLY 148.13 FEET ALONG SAID CURVE, LONG CHORD BEARS N04°05'07"E, 147.99 FEET; THENCE N00°09'30"W, 158.46 FEET; THENCE N89°44'23"W, 427.26 FEET TO THE BEGINNING OF A 112.50 FOOT RADIUS CURVE, CONCAVE SOUTHERLY; THENCE 12.87 FEET WESTERLY ALONG SAID CURVE, LONG CHORD BEARS S86°59'03"W, 12.86 FEET; THENCE S83°42'28"W, 59.01 FEET TO THE BEGINNING OF A 387.50 FOOT RADIUS CURVE, CONCAVE NORTHERLY; THENCE 44.32 FEET WESTERLY ON SAID CURVE, LONG CHORD BEARS S86°59'03"W, 44.29 FEET; THENCE S89°54'59"W, 247.28 FEET; THENCE S00°15'37"W, 125.27 FEET; THENCE S39°03'26"E, 447.96 FEET; THENCE S00°45'13"W, 221.06 FEET TO THE POINT OF BEGINNING. PARCEL CONTAINS A COMBINED 9.82 ACRES (427,724 SQ. FT.) EXISTING ZONING: A (AGRICULTURE) REZONED: FS-RM (SUBURBAN RESIDENTIAL MEDIUM DENSITY) Real Estate Description: Rezoning Tract 3 A TRACT OF LAND LOCATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 20, TOWNSHIP 84 NORTH, RANGE 24 WEST OF THE 5TH P.M., CITY OF AMES, STORY COUNTY, IOWA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE S89°14'47"E, 509.18 FEET ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20 TO THE POINT OF BEGINNING AND ALSO THE BEGINNING OF A 700.00 FOOT RADIUS CURVE, CONCAVE EASTERLY; THENCE NORTHERLY 94.65 FEET ALONG SAID CURVE, LONG CHORD BEARS N04°27'19"E, 94.58 FEET; THENCE N08°19'44"E, 310.85 FEET TO THE BEGINNING OF A 1000.00 FOOT RADIUS CURVE, CONCAVE WESTERLY; THENCE NORTHERLY 148.13 FEET ALONG SAID CURVE, LONG CHORD BEARS N04°05'07"E, 147.99 FEET; THENCE N00°09'30"W, 708.11 FEET TO THE SOUTH RIGHT-OF-WAY LINE OF CAMERON SCHOOL ROAD; THENCE S89°42'18"E, 678.14 FEET ALONG SAID RIGHT-OF-WAY LINE TO THE WEST RIGHT-OF-WAY LINE OF GEORGE WASHINGTON CARVER AVENUE; THENCE S00°06'04"E, 1263.86 FEET ALONG SAID RIGHT-OF-WAY LINE TO THE SOUTH LINE OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 20; THENCE N89°14'47"W, 741.38 FEET ALONG SAID SOUTH LINE TO THE POINT OF BEGINNING. PARCEL CONTAINS A COMBINED 20.00 ACRES (871,226 SQ. FT.) EXISTING AND CONTINUED ZONING: A (AGRICULTURE) Section 2: All other ordinances and parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 3: This ordinance is in full force and effect from and after its adoption and publication as provided by law. ADOPTED THIS 10th day of January 2023. _________________________________ _______________________________________ Renee Hall, City Clerk John A. Haila, Mayor ORDINANCE NO. 4484 AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING CHAPTER 12, SECTIONS 12.2 AND 12.3 THEREOF, FOR THE PURPOSE OF ESTABLISHING ELECTION OF MEMBERS, TERM OF OFFICE AND QUALIFICATIONS, 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 Chapter 12, Section 12.2 and Section 12.3 for the purpose of establishing election of members, term of office and qualifications, as follows: “Sec. 12.2. ELECTION OF MEMBERS, TERM OF OFFICE. The Ames City Hospital Board of Trustees shall consist of five (5) or seven (7) persons, as determined by a majority vote of the Board of Trustees. Trustees shall be elected in regular City elections, and the term of office shall be four (4) years. Sec. 12.3 QUALIFICATIONS. Any eligible elector from the City Hospital’s service area, comprising Story, Greene, Boone, Hamilton, Hardin and Marshall Counties, may be a candidate for the Ames City Hospital Board of Trustees. Any person appointed to fill a Trustee vacancy shall also be a resident of the City Hospital’s service area. A candidate for Hospital Trustee must be nominated by petition of residents of the City in accordance with the election laws of Iowa.” 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 , . _______________________________________________________________________ Renee Hall, City Clerk John A. Haila, Mayor Caring People  Quality Programs  Exceptional Service main fax Item No. 26 To: Mayor Haila, Ames City Council From: Mark O. Lambert, City Attorney Date: November 17, 2022 Subject: Hospital Board of Trustees Ordinance On September 15, 2022, Brian Deter, CEO of Mary Greeley Medical Center (MGMC), sent the Council a letter requesting changes to Chapter 12, the “City Hospital” chapter of the Municipal Code, as there were apparent conflicts with the Code of Iowa. The Council referred Mr. Dieter’s letter to the City Attorney for a response. At the October 25, 2022 City Council meeting, the Council directed the City Attorney’s office to draft an ordinance to correct the Municipal Code to bring it into compliance with the Code of Iowa. The attached ordinance addresses the following two issues: 1.The ordinance amends Section 12.2 of the Ames Municipal Code to allow either a five (5) or seven (7) member Board of Trustees at the discretion of the Hospital Board of Trustees. The prior language set the number of Trustees at five (5). The Iowa Code used to state that the City Council would set the size of a city hospital board. However, the Iowa Code was amended in 2009 and the current Iowa Code language (section 392.6(2)) allows 3, 5 or 7 hospital trustees, and empowers the Board of Trustees to determine the size of the board. 2.The ordinance amends Section 12.3 of the Ames Municipal Code to allow anyone from the hospital’s service area to serve as a trustee, not just City of Ames residents. Iowa Code section 392.6(1) was amended in 2003, and language was added stating that “A candidate for hospital or health care facility trustee must be a resident of the hospital or health care facility service areas within the boundaries of the state at the time of the election at which the person’s name appears on the ballot.” The attached ordinance specifies a six-county area that makes up the MGMC service area, according to MGMC. Those six counties are Story, Greene, Boone, Hamilton, Hardin, and Marshall Counties. It is important to note that the elections for City Hospital Trustee remain City elections. That means that although candidates for Hospital Trustee could live in any of the six counties, a candidate must obtain on a nominating petition the required number of signatures of Ames residents in order to be a candidate, and that only Ames residents will be voting to elect the Hospital Trustees. Additionally, the ordinance changes the former wording saying “any adult” was allowed to be a Trustee candidate, to “any eligible elector” to bring it into sync with other election laws in Iowa. CITY ATTORNEY’S RECOMMENDED ACTION: The Ames Municipal Code conflicts with the Iowa Code, and these changes are needed to bring the Municipal Code into compliance with state law. Therefore, it is the recommendation of the City Attorney that the City Council adopt the ordinance on first passage. HERE ARE THE CHANGES REFLECTED IN THE ATTACHED ORDINANCE. STRIKE-THROUGHS ARE DELETIONS; UNDERLININGS ARE ADDITIONS. “Sec. 12.2. ELECTION OF MEMBERS, TERM OF OFFICE. The Ames City Hospital Board of Trustees shall consist of five (5) persons elected in the regular city elections, whose terms of office shall be four (4) years. five (5) or seven (7) persons, as determined by a majority vote of the Board of Trustees. Trustees shall be elected in regular City elections, and the term of office shall be four (4) years. Sec. 12.3 QUALIFICATIONS. Any adult eligible elector from the City Hospital’s service area, comprising Story, Greene, Boone, Hamilton, Hardin and Marshall Counties, may be a candidate for the Ames City Hospital Board of Trustees. Any person appointed to fill a Trustee vacancy shall also be a resident of the City Hospital’s service area. A candidate for Hospital Trustee must be nominated by petition of residents of the City in accordance with the election laws of Iowa.” # ORDINANCE NO. AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING CHAPTER 12, SECTIONS 12.2 AND 12.3 THEREOF, FOR THE PURPOSE OF ESTABLISHING ELECTION OF MEMBERS, TERM OF OFFICE AND QUALIFICATIONS, 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 Chapter 12, Section 12.2 and Section 12.3 for the purpose of establishing election of members, term of office and qualifications, as follows: “Sec. 12.2. ELECTION OF MEMBERS, TERM OF OFFICE. The Ames City Hospital Board of Trustees shall consist of five (5) or seven (7) persons, as determined by a majority vote of the Board of Trustees. Trustees shall be elected in regular City elections, and the term of office shall be four (4) years. Sec. 12.3 QUALIFICATIONS. Any eligible elector from the City Hospital’s service area, comprising Story, Greene, Boone, Hamilton, Hardin and Marshall Counties, may be a candidate for the Ames City Hospital Board of Trustees. Any person appointed to fill a Trustee vacancy shall also be a resident of the City Hospital’s service area. A candidate for Hospital Trustee must be nominated by petition of residents of the City in accordance with the election laws of Iowa.” 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 , . _____________________________________________________________________________ Renee Hall, City Clerk John A. Haila, Mayor ORDINANCE NO. 4485 AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY ENACTING A NEW SECTION 24.20 THEREOF, FOR THE PURPOSE OF A TAX INCREMENT FINANCING DISTRICT; REPEALING ANY AND ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH CONFLICT; AND ESTABLISHING AN EFFECTIVE DATE. BE IT ENACTED, by the City Council for the City of Ames, Iowa, that: Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by enacting a new Section 24.20 as follows: “Sec. 24.20. SEVENTH TAX INCREMENT FINANCING DISTRICT. (1) Purpose. The purpose of this ordinance is to provide for the division of taxes levied on taxable property within the North Dayton Industrial Park Urban Renewal Area, each year by and for the benefit of the state, city, county, school districts or other taxing districts after the effective date of this ordinance in order to create a special fund to pay the principal of and interest on loans, moneys advanced to or indebtedness, including bonds proposed to be issued by the City of Ames to finance projects in such area. (2) Definitions. For use within this ordinance the following terms shall have the following meanings: " City" shall mean the City of Ames, Iowa. "County" shall mean Story County, Iowa. "Urban Renewal Area" shall mean the North Dayton Industrial Park Urban Renewal Area, such Area having been identified in the Urban Renewal Plan approved by the City Council of the City by Resolution No. 22-546 adopted on October 11, 2022, which includes the real property identified below and shall constitute the tax increment financing district created by this ordinance: The Southeast Quarter (SE¼) of the Northeast Quarter (NE¼) of Section Thirty-six (36); the Northeast Quarter (NE ¼) of the Northeast Quarter (NE¼), of Section Thirty-six (36) except the North 1 rod and except A part of the NE¼ of the NE¼ of Sec. 36-T84-R24W of the 5th P.M., Story County, Iowa, described as follows: Beginning at a point on the east line, 16.5 feet south of the NE Corner of said NE¼ of the NE¼; thence N88°41’W 925.0 feet, parallel and 16.5 feet distant from the north line of said NE¼ of the NE¼, thence South 275.0 feet, thence S88°41’E 925.0 feet to the east line of said NE¼ of the NE¼; thence North 275.0 feet to the point of beginning. (3) Provisions for Division of Taxes Levied on Taxable Property in the Urban Renewal Area. After the effective date of this ordinance, the taxes levied on the taxable property in the Urban Renewal Area each year by and for the benefit of the State of Iowa, the City , the County and any school district or other taxing district in which the Urban Renewal Area is located, shall be divided as follows: (a) that portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts upon the total sum of the assessed value of the taxable property in the Urban Renewal Area, as shown on the assessment roll as of January I of the calendar year preceding the first calendar year in which the City certifies to the County Auditor the amount of loans, advances, indebtedness, or bonds payable from the special fund referred to in paragraph (b) below, shall be allocated and when collected be paid into the fund for the respective taxing district as taxes by or for said taxing district into which all other property taxes are paid. For the purpose of allocating taxes levied by or for any taxing district which did not include the territory in the Urban Renewal Area on the effective date of this ordinance, but to which the territory has been annexed or otherwise included after the effective date, the assessment roll applicable to property in the annexed territory as of January 1 of the calendar year preceding the effective date of the ordinance which amends the plan for the Urban Renewal Area to include the annexed area, shall be used in determining the assessed valuation of the taxable property in the annexed area. (b) that portion of the taxes each year in excess of such amounts shall be allocated to and when collected be paid into a special fund of the City to pay the principal and interest on loans, moneys advanced to or indebtedness, whether funded, refunded, assumed or otherwise, including bonds issued under the authority of Section 403.9(l) of the Code of Iowa, incurred by the City to finance or refinance, in whole or in part, a project within the Urban Renewal Area, and to provide assistance for low and moderate-income family housing as provided in Section 403.22 of the Code of Iowa, except that taxes for the regular and voter -approved physical plant and equipment levy of a school district imposed pursuant to Section 298.2 of the Code of Iowa, to the extent authorized in Section 403.19 (2) of the Code of Iowa, taxes for the instructional support program levy of a school district, imposed pursuant to Section 257.19 of the Code of Iowa, to the extent authorized in Section 403.19(2) of the Code of Iowa, taxes for the payment of bonds and interest of each taxing district, and taxes imposed under Section 346.27(22) of the Code of Iowa, related to joint county-city buildings, shall be collected against all taxable property within the taxing district without limitation by the provisions of this ordinance. Unless and until the total assessed valuation of the taxable property in the Urban Renewal Area exceeds the total assessed value of the taxable property in such area as shown by the assessment roll referred to in subsection (a) of this section, all of the taxes levied and collected upon the taxable property in the Urban Renewal Area shall be paid into the funds for the respective taxing districts as taxes by or for said taxing districts in the same manner as all other property taxes. When such loans, advances, indebtedness, and bonds, if any, and interest thereon, have been paid , all money thereafter received from taxes upon the taxable property in the Urban Renewal Area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property. (c) the portion of taxes mentioned in subsection (b) of this section and the special fund into which that portion shall be paid may be irrevocably pledged by the City for the payment of the principal and interest on loans, advances, bonds issued under the Authority of Section 403.9(1) of the Code of Iowa, or indebtedness incurred by the City to finance or refinance in whole or in part projects in the Urban Renewal Area. (d) as used in this section, the word "taxes" includes, but is not limited to, all levies on an ad valorem basis upon land or real property. 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 , . ______________________________________ _______________________________________ Renee Hall, City Clerk John A. Haila, Mayor ITEM #__51a __ DATE: 12-13-22 COUNCIL ACTION FORM SUBJECT: PROPOSED NORTH DAYTON INDUSTRIAL PARK URBAN RENEWAL AREA AND PLAN BACKGROUND: At its November 8th meeting, City Council voted to proceed with the process to create an Urban Renewal Area at 2105 and 2421 Dayton Avenue. The Urban Renewal Area will have the same boundaries as the recently approved North Dayton Industrial Park Preliminary Plat. Urban Renewal Areas (URA) allow for a city to use a variety of powers and authorities to remove slum and blight and support economic development within an URA, as defined by Chapter 403 of the Code of Iowa. An Urban Renewal Plan for an Urban Renewal Area may also establish Tax Increment Financing (TIF) districts to financially support the objectives and projects of the Urban Renewal Plan. The proposed URA comprises approximately 73 acres of land along Dayton Avenue on land containing a recently approved Preliminary Plat known as the North Dayton Industrial Park Subdivision at 2105 & 2421 Dayton Avenue. (Attachment A). The land is currently zoned General Industrial (GI) with a masterplan which was approved this past summer. The proposed Urban Renewal Plan (URP) is intended to promote economic development for the City of Ames for small scale industrial lots and speculative buildings for small businesses. (Attachment B) The proposed URP contemplates use of Tax Increment Financing (TIF) in the form of property tax reba tes to the developer. The City Council approved a Development Agreement in October with the developer, Dayton Avenue Development LLC. The Development Agreement caps the TIF at either 10 years of rebates or $2,968,264, whichever occurs first. URBAN RENEWAL PLAN: The City Council adopted a resolution of necessity for the URA at it its November 8th meeting in order to initiate the approval process. There are three steps that needed to occur upon initiation in order to approve the Urban Renewal Plan. These steps include consultation with tax entities, a Planning and Zoning Commission review for a recommendation of consistency with the Land Use Policy Plan, and to hold a public hearing prior to adoption of the Plan. The Planning and Zoning Commission reviewed the proposed URA at its November 16th meeting. The Commission discussed the boundaries of the URA, purpose of the district for supporting economic development, and the types of projects and activities contemplated within the Plan. The Commission voted 5-0 to recommend that the proposed Plan is consistent with the City’s Land Use Policy Plan. City staff held a consultation meeting on November 18th to allow for input from affected taxing entities. No one participated in the meeting and no written comments were received within 7 days of the meeting. The public hearing notification was published in the Ames Tribune on November 29th, 2022, for the December 13th meeting. The proposed Plan includes the necessary components described by the Code of Iowa. The draft URP identifies its purpose to support economic development. It describes the projects and its objectives. The draft URP identifies those components of the Ames 2040 Comprehensive Plan that support the proposed URA. The Urban Renewal Plan must reflect if, and how, TIF funds will be used. The identified amount of TIF funds is a cap on the amount of TIF that can be collected in support of Urban Renewal Projects. Additional projects, or any increase in TIF that exceeds what is authorized in the Plan, would require an amendment to the Plan. The Plan identifies up to $2.968 million dollars for use in facilitating private development through incremental property tax rebates. The Plan itself does not define the specific parameters of TIF; the associated TIF ordinance will define the location where TIF will be generated and how it will be used. The Iowa Code also requires that the Plan contain a summary of the City’s current debt obligations, the City’s limits on issuing debt, and an estimate of the amount of TIF debt that would be incurred. There are no General Obligation bonds associated with this Urban Renewal Area. In this case the structure of the TIF rebate will be subject to annual appropriation by the City Council and does not count towards the City’s debt limit. A TIF ordinance establishing a TIF District for the entirety of the North Dayton Industrial Park URA has been drafted and will be considered for approval following action on the Urban Renewal Plan and Area. ALTERNATIVES: 1. Adopt a resolution approving the proposed North Dayton Industrial Park Urban Renewal Plan and Area per Attachment B. 2. Conduct a public hearing on the proposed Urban Renewal Plan and direct staff to make changes prior to adopting the Plan. 3. Decline to approve the Urban Renewal Plan and direct staff to not proceed further. CITY MANAGER’S RECOMMENDED ACTION: The proposed Urban Renewal Area and Plan creates and defines the area of the Tax Increment Finance District (TIF) needed to provide a Property Tax Rebate to the developer for building improvements made in the North Dayton Industrial Park. This action represents the final step toward following through on the City Council commitment to help incentivize the development of small businesses in the Community based on an identified need. The proposed Plan includes and supports the economic development goals for the area and for the City. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. ATTACHMENT A: PROPOSED DOWNTOWN URBAN RENEWAL AREA ATTACHMENT B: PROPOSED DOWNTOWN URBAN RENEWAL PLAN URBAN RENEWAL PLAN North Dayton Industrial Park Urban Renewal Area CITY OF AMES, IOWA October 21, 2022 I. INTRODUCTION Chapter 403 of the Code of Iowa authorizes cities to establish areas within their boundaries known as "urban renewal areas," and to exercise special powers within these areas. Chapter 15A of the Code of Iowa declares that economic development is a “public purpose” and authorizes local governments to make grants, loans, guarantees, tax incentives and other financial assistance to private enterprise. The statute defines “economic development” as including public investment involving the creation of new jobs and income or the retention of existing jobs and income that would otherwise be lost. The proposed URA matches the boundaries of the North Dayton Industrial Park Subdivision and is approximately 73 acres in size. In addition to defining an area, Iowa Code requires preparation of a Plan identifying the purpose of the URA and the types of projects and activities that will occur within the URA. This document is intended to serve as the Urban Renewal Plan for an urban renewal area to be known as the North Dayton Industrial Park (the "Urban Renewal Area"). It is intended that this Urban Renewal Plan will guide the City in promoting economic development. This document is an Urban Renewal Plan within the meaning of Chapter 403 of the Code of Iowa, and it sets out proposed projects to be undertaken within the Urban Renewal Area. A City's Planning and Zoning Commission must review the draft plan and inform the City Council if it is consistent with the City's general plan, for Ames this is the Ames 2040 Comprehensive Plan. Additionally, all affected taxing entities, such as counties and school districts, must be notified and given an opportunity to comment on the proposed plan. The City Council must hold a public hearing on the urban renewal plan, following which, the Council may approve the plan and designate an area. II. DESCRIPTION OF URBAN RENEWAL AREA The North Dayton Industrial Park Urban Renewal Area would include approximately 73 acres of land located along Dayton Avenue in the northeastern part of Ames as depicted in Attachment A. A legal description of the property is attached hereto as Exhibit B. III. AREA DESIGNATION The URA is designated as an economic development area appropriate for the promotion of industrial development. Appropriateness for industrial development is based upon the City’s Comprehensive Plan and zoning designation that supports industrial development. The City solicited proposals in 2021 for the express purpose of developing additional industrial lots and speculative buildings as an economic development goal. The proposed Urban Renewal Area is planned for industrial development of small and medium size industrial lots to allow for a wide range of uses allowed by the City’s industrial zoning. IV. URBAN RENEWAL OBJECTIVES The primary objectives for development within the North Dayton Industrial Park Urban Renewal Area are: To contribute to a diversified, well-balanced local economy by retaining and creating job opportunities and strengthening the property tax base by facilitating development of small lot and medium size industrial development and the construction of small-scale speculative buildings. To provide economic development incentives for development of a project consistent with the small and medium size industrial development goals. To promote development utilizing any other objectives allowed by Chapter 403 of the Code of Iowa. V. CITY PLAN The City’s Comprehensive Plan Land Use Map designates this property with the Employment category of land use. The Employment category policy goals, development guidelines and public actions support the proposed Urban Renewal Plan that will support development that is in alignment with the vision proposed in the Comprehensive Plan. Physical industrial land will need to increase by up to 156 acres to accommodate needed industrial growth. (Page 63 Ames 2040 Comprehensive Plan). The following goals are included in the Employment Category, among others, and best support the creation of the North Dayton Industrial Park Urban Renewal Area: 1. Provide attractive and well-functioning settings for a range of industrial enterprises. These industrial lots will be developed in a subdivision with planned infrastructure installation and will extend infrastructure according to City standards appropriately. Streets, sidewalks & shared use paths, water, sewer, storm sewer and electrical infrastructure will connect to their larger networks to provide connections to the rest of the community. 2. Minimize impact and external effects on city neighborhoods. These industrial lots will be located away from residential neighborhoods in an area that has been developed with a mix of commercial, industrial and government research uses. 3. Discourage industrial uses that are large resource users for water and sewer services with system capacity impacts. The smaller size of these lots and requirement for speculative buildings on the smallest lots will discourage high water and sewer users. City Site Development Plan review will also review resource consumption to protect against excessive water and sewer usage. Growth & Land Use The City’s Growth & Land Use principals found in the Ames 2040 Comprehensive Plan also support development which will occur within this Urban Renewal Area. Ames is anticipated to add 15,000 residents by the year 2040. This presents the challenge of accommodating this population growth and job opportunities as a result in ways that create the most efficient, connected, rewarding, delightful and equitable experience. Specifically, principals G1, G2, G5 and G6 all directly support the development which will occur here. Below is a portion of the Plan with these principles described: G1: Sustainable Growth. The vision is for new growth to be both economically and environmentally sustainable. This encompasses housing densities that minimize the footprint of growth and reduce service cost per unit; maximum use of existing infrastructure; new investments that have citywide benefits; and preservation of environmental assets. The emphasis on smaller sized industrial lots helps reduce building footprint and which helps with minimizing overall growth footprint. G2: Contiguous Greenfield Development. Ames will accommodate much of its projected population growth in areas contiguous to the existing built-up city. During the Plan 2040 process, the City identified alternative contiguous Tier 1 and Tier 2 areas as most readily able to serve the projected growth in population and employment. Providing multiple opportunity areas creates choices that support a variety of needs of a growing community. The industrial development within the North Dayton Industrial URA is contiguous to existing developed areas of the city. G5: Review and Approval Process. The ongoing land use planning process defines priorities and policies, while development review affirms consistency with specific standards that implement these policies. Decisions will be made through a transparent, collaborative process that includes stakeholders, and moves toward solutions that are compatible with longterm community goals. This process should be viewed by all parties as fair and reliable. The Site development review process will ensure sites are developed consist with zoning standards and in a manner that is most efficient and logical. G6: Planning for Equity. Ames will continue to grow in diversity of its people and jobs during the next twenty years. Equity with growth requires consideration of the needs of a diverse population. This includes adding affordable housing, multiple housing types, and marketbased price points, supporting economic growth, expanding transportation choice, providing accessible institutions and services, and maintaining a variety of amenities. The creation of these industrial lots within the URA will support economic growth and add job opportunities to the community. VI. RENEWAL PROJECTS AND ACTIVITES The purpose of this Urban Renewal Plan is to facilitate the development of a new industrial subdivision with small size industrial lots for business development and expansion consistent with City plans and zoning. To this end the City will provide a rebate of incremental property tax revenues collected from properties within this subdivision to the developer. This incentive is based upon estimated costs for the developer to install required public infrastructure and improvements as part of the subdivision. Nothing in this section should be construed as limiting the range or types of activities or powers granted to the City under Chapter 403 or any other provisions of the Code of Iowa in furtherance of the Urban Renewal Plan as the City Council determines necessary to fulfill the goals for development of this Area. A. Tax Increment Financing Under the Iowa Urban Renewal Law, in order to assist in the development of new private enterprises, the City may be requested to provide a property tax incentive in the form of an agreement that returns certain incremental property tax revenues to a developer as economic development payments. As part of the establishment of an urban renewal area, the City may adopt an ordinance to create a tax increment financing district (the "TIF District"), within which the property taxes eventually paid by new private development will be used to pay costs of urban renewal projects, including economic development agreements. The use of these tax revenues in this manner is known as tax increment financing ("TIF"). Depending on the date on which a TIF District is legally established and the date on which debt is initially certified within a TIF District, an original taxable valuation is established for the property within a TIF District, which is known as the "base valuation." The "base valuation" is the assessed value of the taxable property in a TIF District as of January 1 of the calendar year preceding the calendar year in which a City first certifies the amount of any obligations payable from TIF revenues to be generated within that TIF District. When the value of the property inside a TIF District increases by virtue of new construction or any other reason, the difference between the base valuation and the new property value is the "tax increment" or "incremental value." Procedurally, after tax increment debt has been incurred within a TIF District, property taxes levied by the city, the county, the school district and the area college against the incremental value, with the exception of taxes levied to repay debt incurred by those jurisdictions and the school district physical plant and equipment and instructional support levies, are allocated by state law to the City's tax increment fund rather than to each jurisdiction. These new tax dollars are then used to repay any tax increment obligations incurred in the Urban Renewal Area. Review of the proposed projects by City has resulted in a determination that financial assistance is likely required in order to make the projects financially viable through the use of Tax Increment Financing outlined in Chapter 403 of the Code of Iowa for public improvements and private development. The City has entered into a Tax Increment Financing (TIF) rebate agreement with the private developer for projects that meet the objectives of the plan, subject to approval of this Plan. The agreement includes a rebate of eligible incremental property taxes up to $2,968,264. The TIF agreement is structured such that the amount of the TIF rebate will not be included as debt subject to the state mandated debt limitation as it will be approved each year as an Annual Appropriation. If the Urban Renewal Area is legally established, and a Tax Increment Financing (TIF) ordinance is adopted, then the “base value” of the Area will be the assessed value of the taxable property within the TIF Ordinance area as of January 1 of the calendar year preceding the calendar year in which the City first certifies the amount of any debt on the Area pursuant to Iowa Code Section 403.19. VII. PROPERTY ACQUISTION/DISPOSITION The City may acquire property within the area for purposes and objectives consistent with this Plan, which may include the use of eminent domain, as allowed under Chapter 403 and 6A. The City will follow any applicable requirements for the acquisition and disposition of property within the Urban Renewal Area. VIII. EFFECTIVE PERIOD This Urban Renewal Plan will become effective upon its adoption by the City Council and will remain in effect to the extent it is allowed by state law or until it is repealed by the City Council. State law allows the collection of incremental property taxes generated within the Urban Renewal Area for up to twenty years. Each project or activity to which incremental property tax revenues will be devoted will be subject to such restrictions as may be deemed necessary and appropriate by the City Council. IX. PLAN AMENDMENTS This Urban Renewal Plan may be amended in accordance with the procedures set forth in Chapter 403 of the Code of Iowa in order to carry out any purposes consistent with state law. X. CITY DEBT INFORMATION Chapter 403 of the Code of Iowa requires that any urban renewal plan include certain information with respect to City general obligation debt, ability to incur additional debt and the amount of proposed tax increment debt to be incurred. CURRENT GENERAL OBLIGATION BOND DEBT General Obligation Bonds Amount Originally Final Outstanding as of 2014 Corporate purpose 9,695,000 2026 3,120,000 2015A Corporate purpose 18,445,000 2035 6,580,000 2016A Corporate purpose/refunding 11,650,000 2028 4,735,000 2017A Corporate purpose 10,975,000 2029 4,395,000 2018A Corporate purpose 7,490,000 2030 5,360,000 2019A 10,775,000 2031 8,330,000 2020A 17,865,000 2032 12,415,000 2021A 19,640,000 2033 17,635,000 2022A (to be issued Nov. 8, 2022) 13,400,000 2034 13,400,000 CURRENT CONSTITUTIONAL DEBT LIMIT AND CAPACITY Total Debt Capacity Available ($/%) Notes: *Iowa Statutory Debt Limit is 5% of total actual valuation **City Policy reserves 25% of available debt capacity The proposed amount of development incentives will not exceed $2,968,264 of TIF for the North Dayton Industrial Urban Renewal Area. However, the development incentives are subject to annual City Council appropriation and are not part of the City’s debt limits. Exhibit A- Location & Land Use Map Exhibit B- Legal Description The Southeast Quarter (SE¼) of the Northeast Quarter (NE¼) of Section Thirty-six (36); the Northeast Quarter (NE ¼) of the Northeast Quarter (NE¼), of Section Thirty-six (36) except the North 1 rod and except A part of the NE¼ of the NE¼ of Sec. 36-T84-R24W of the 5th P.M., Story County, Iowa, described as follows: Beginning at a point on the east line, 16.5 feet south of the NE Corner of said NE¼ of the NE¼; thence N88°41’W 925.0 feet, parallel and 16.5 feet distant from the north line of said NE¼ of the NE¼, thence South 275.0 feet, thence S88°41’E 925.0 feet to the east line of said NE¼ of the NE¼; thence North 275.0 feet to the point of beginning, ORDINANCE NO. 4487 AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY ENACTING A NEW SECTION 29.406(f) THEREOF, FOR THE PURPOSE OF REDUCING REQUIRED PARKING FOR NONRESIDENTIAL USES WITHIN COMMERICAL AND INDUSTRIAL BASE ZONE DISTRICTS, REPEALING ANY AND ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH CONFLICT; AND ESTABLISHING AN EFFECTIVE DATE. BE IT ENACTED, by the City Council for the City of Ames, Iowa, that: Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by enacting a new Section 29.406(f) as follows: “Sec. 29.406. OFF-STREET PARKING. … (2)Required Parking Spaces. Off-street parking spaces must be provided in accordance with the minimum requirements set forth in Table 29.406(2) below, for any new building constructed and for any new use established. … (f) On any Commercial or Industrial Base Zone District site that has required parking of 100 vehicle parking spaces, the Planning and Housing Director, at the request of a developer, may authorize a reduction of up to 20% of the required parking spaces as part of the Site Development Plan review process for Office, Trade and Wholesale, and Industrial use categories within Table 29.406(2), provided that such reduction does not reduce the number of parking spaces below one hundred (100) spaces. This allowance to reduce parking is subject to the following limitations: (i) Special Purpose Districts are not included in this allowance. The full required parking standards must be adhered to. (ii) Existing sites must have one hundred (100) conforming parking spaces to request the 20% reduction in required parking. (iii) Additional parking reductions and adjustments, e.g., landscaping, bicycle parking, compact stalls may be approved by the Planning and Housing Director after accounting for the 20% reduction.” 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 , 2023. _________________________________ ____________________________________ Renee Hall, City Clerk John A. Haila, Mayor ITEM #: _______ DATE: 12-13-22 COUNCIL ACTION FORM REQUEST: ZONING TEXT AMENDMENT TO ALLOW A 20% REDUCTION IN REQUIRED PARKING FOR CERTAIN COMMERCIAL AND INDUSTRIAL USES ON SITES WITH MORE THAN 100 PARKING STALLS BACKGROUND: On October 11th, the City Council referred a zoning text amendment request to staff from Strand Associates on behalf of a regional furniture store operator requesting a change in the required parking for Wholesale Trade and Display stores which include furniture stores. The request was to change from the current 1 space per 500 square feet to a 1 space per 750 square feet. At that meeting, the City Council directed staff to move forward with a broader parking reduction option for a comprehensive 20% reduction allowance for required parking for commercial and industrial sites exceeding 100 spaces. (Attachment A-Draft Standards) This option allows for, at the request of a developer, any new site or addition to an existing site that has 100 or more parking space to qualify to have 20% of the required parking waived, provided that the waiver does not reduce the number of stalls below 100 spaces. This option also is the numeric equivalent to the original request from Strand Associates to reduce parking on Wholesale Trade and Display Store sites. Typically, sites with large parking lots include very large retail outlets, large industrial employers, or large commercial office employers. Examples of parking provided at existing business in the City are listed below and whether or not they would qualify for the reduction option if proposed under the new standard. Fareway- Grocery Store- 24,247 sq ft @ 1/300=81 spaces- No Reduction Super Walmart North- 156,833 sq ft @ 1/300=523 spaces- Reduction Option Allowed Workiva- Office- 118,503 sq ft. @ 1/300=395 spaces- Reduction Option Allowed Amcor Warehouse- 575,276 sq ft. @ 1/5000=115 spaces-Reduction Option Allowed Uses allowed to take advantage of the reduction will be limited to the categories of Office, Trade and Wholesale, and Industrial within Table 29.406(2). (See Attachment B) The proposed text amendment would not apply to residential sites as parking rates for residential sites are based on occupancy and seen as more critical to parking on site for those that live there. The proposed text amendment would not 48 reduce any of the parking ratio requirements currently in place i n the parking standards located in Section 29.406(2). The proposed text amendment would not apply to Special Purpose District, therefore uses in these zones will not be able to utilize the 20% reduction allowance. Special Purpose District have unique sta ndards specifically designed for those districts and staff does not believe a blanket reduction is appropriate. Any development within those areas will need to abide by the full parking standards that apply to each specific use. Examples of Special Purpose Districts include: Hospital/Medical, Downtown Gateway Commercial, South Lincoln Mixed Use, and Government/Airport. OTHER REDUCTIONS: The City allows for other parking reductions related to, cross access, bicycle parking and landscaping. The current allowance to reduce required parking by 10% in exchange for additional landscaping will stay in place and be a separate standard applied in addition to the new proposal for a 20% reduction allowance. The bicycle parking allowance allows for up to 5 parking stalls to be removed for bike parking. Three parking stalls may be removed in order to facilitate cross access between properties. These reductions will be applied after 20% reduction in required parking. This means that a site with 100 required parking spaces could be reduced to 82 parking spaces using the other three reductions. ADDITIONS & ALTERATIONS TO PRE-EXISTING SITES: Additions made to current sites will have the standard for the allowance applied based on the final number of parking stalls required after the addition is calculated for the use. This means an addition to an existing site must add enough parking to the total existing parking that it will surpass a minimum of 100 stalls total before the waiver can be allowed. JOINT-USE & REMOTE PARKING AGREEMENTS: Any previously approved Joint-use Parking or Remote Parking Agreements will not be affected by this change. City Council must individually approve such agreements or amendment to the agreement. Any application of the 20% reduction in required parking in future agreements must be enumerated in the agreement and approved by City Council. PLANNING & ZONING COMMISSION RECOMMENDATION: At the November 16th Planning & Zoning Commission meeting the Commission reviewed the text amendment and voted 4-1 to recommend the City Council approve the proposed text amendment to allow a 20% reduction in required parking for commercial and industrial uses in base zones when exceeding 100 parking stalls. One dissenting viewpoint expressed concerns over having adequate parking during peak parking periods. Staff addressed the issue stating that in large parking lot scenarios the vast majority of businesses do not utilize them to their maximum capacity. ALTERNATIVES: 1. The City Council can approve on first reading an allowance to reduce required parking by up to 20% for certain office, trade, wholesale, and industrial uses within commercial and industrial base zone districts (excludes Special Purpose Districts) that require more than 100 parking spaces provided such allowance does not reduce the number of parking spaces below 100. 2. The City Council can modified language as alternative to reducing parking requirements in commercial and industrial base zones. 3. City Council can take no action to modify parking standards. CITY MANAGER’S RECOMMEDNED ACTION: The ability to waive required parking when requested by developers is seen as beneficial to assist in reducing the amount of impervious coverage in the City, which assists in discouraging excess stormwater runoff. In some cases, depending on the developmen t proposal, it could potentially help in promoting smaller sites to assist in reducing overall development footprint of the City as growth occurs, which is one of the goals of the Ames Plan 2040 Comprehensive Plan. In addition, the proposed change could allow somewhat larger building footprints on lots to use land area more efficiently for building purposes. A larger building footprint could help reduce excess lot size that would otherwise be needed to accommodate the same building size with more parking. Increasingly developers have indicated that they find that meeting parking standards in some cases is inefficient where high levels of parking are not warranted for the typical use of the property. Staff finds that the comprehensive allowance of a 20% redu ction in required parking for parking lots over 100 spaces in base commercial and industrial zones is reasonable to ensure typical minimum parking needs are met while providing for flexibility to larger uses. Residential sites will not be included in the allowance as the residential parking standards are designed using occupancy as the basis for residential parking requirements. The waiver would also help to reduce impervious surfaces and promote smaller sites within the City. Staff’s observations and discussions with developers over the past couple of years support creating this allowance. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative #1. Attachment A-Proposed Text Amendment Attachment B- Table 29.406(2)