HomeMy WebLinkAbout~Master - July 27, 2023, Regular Meeting of the Ames City CouncilAGENDA
REGULAR MEETING OF THE AMES CITY COUNCIL
COUNCIL CHAMBERS – CITY HALL
JULY 27, 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.
CONSENT AGENDA: All items listed under the Consent Agenda will be enacted by one motion.
There will be no separate discussion of these items unless a request is made prior to the time the
Council members vote on the motion.
1. Motion approving payment of claims
2. Motion approving Summary of Minutes of Regular Meeting on July 11, 2023
3. Motion approving Report of Change Orders for period July 1-15, 2023
4. Resolution approving contract renewal with EMC Risk Services, LLC, Des Moines, Iowa, to
provide third-party administration of the City’s Worker’s Compensation and Municipal Fire
and Police “411 System” claims for August 1, 2023, through July 31, 2024
5. Resolution approving award of contract to RK Demolition, of Slater, Iowa, for demolition of
City-owned property located at 621 Grand Avenue in conjunction with the City’s Community
Development Block Grant (CDBG) in the amount not to exceed $77,380
6. Resolution approving award of contract for CyRide FY 2024 Fuel Purchase to Renewable
Energy Group of Ames, Iowa, for fuel purchases from August 1, 2023, until June 30, 2024, at
an amount not to exceed $1,572,500
7. Resolution approving preliminary plans and specifications for CyRide 2023 Shop
Rehabilitation Project, setting August 23, 2023, as the bid due date and September 12, 2023,
as the date of Public Hearing
8. Resolution approving contract and bond for the Furman Aquatic Center Pool Basin Repainting
project with Amusement Restoration Companies, of Burnet, Texas
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.
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PARKS & RECREATION:
9. Fitch Family Indoor Aquatic Center Update
ELECTRIC:
10. Resolution authorizing staff to approve amending the contract with Macquarie Energy LLC,
Houston, Texas, to extend the existing natural gas supply contract for a term of not less than
one but not more than three years at a price of not more than $4/MMBtu and a total cost of
not more than $14,900,000, and further authorizing a transfer of funds from the Electric Fund
to Resource Recovery Fund to offset the shortfall in net revenues due to the reduction in
natural gas purchased for the remainder of FY 2023/24
HEARING:
11. Hearing on a Zoning Text Amendment to allow for a Sports Practice Facility as a use within
the General Industrial (GI) Zoning District of Section 29.901 of the Ames Municipal Code
a. First reading of ordinance
ORDINANCES:
12. Second reading of an ordinance amending Ames Municipal Code Section 11.4 regarding
Urination and Defecation
13. Third reading and adoption of ORDINANCE NO. 4506 on rezoning of 314 Borne Avenue
from General Industrial (GI) to Government/Airport District (S-GA)
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.
SUMMARY OF MINUTES OF THE MEETING OF THE AMES AREA
METROPOLITAN PLANNING ORGANIZATION (AAMPO) TRANSPORTATION
POLICY COMMITTEE AND REGULAR MEETING OF THE AMES CITY COUNCIL
AMES, IOWA JULY 11, 2023
The Ames Area Metropolitan Planning Organization (AAMPO) Transportation Policy Committee
meeting was called to order by Ames Mayor and voting member John Haila at 6:0 0 p.m. on the
11th day of July, 2023. Other voting members present were: Bronwyn Beatty-Hansen, City of
Ames; Amber Corrieri, City of Ames; Tim Gartin, City of Ames; Rachel Junck, City of Ames;
Anita Rollins, City of Ames; and Linda Murken, Story County Board of Supervisors.
IOWA DISTRIBUTION FORMULA FOR METROPOLITAN PLANNING
ORGANIZATION (MPO) PLANNING FUNDS: Transportation Planner Kyle Thompson
discussed how the current formula compared to the proposed formula, highlighting that the
AAMPO would expect an approximate $2,000 increase in funding in FY 2025 if the proposed PL
funding allocation methodology were used.
Moved by Gartin, seconded by Murken, to support the proposed Iowa distribution formula for
MPO transportation PL funds.
Vote on Motion: 7-0. Motion declared carried unanimously.
HEARING ON FINAL FY 2024-2027 TRANSPORTATION IMPROVEMENT
PROGRAM: Transportation Planner Thompson shared that there were no substantial
amendments to note.
Ames Mayor John Haila opened and closed the Public Hearing when no one came forward to
speak.
Moved by Junck, seconded by Murken, to adopt RESOLUTION NO. 23-393 approving FY 2024-
2027 Transportation Improvement Program.
Vote on Motion: 7-0. Resolution declared adopted, signed by the Chair, and hereby made a
portion of these Minutes.
POLICY COMMITTEE COMMENTS: There were no comments made.
ADJOURNMENT: Moved by Murken, seconded by Junck, to adjourn the meeting at 6:06 p.m.
Vote on Motion: 7-0. Motion declared carried unanimously.
SUMMARY OF MINUTES OF THE
REGULAR MEETING OF THE AMES CITY COUNCIL
AMES, IOWA JULY 11, 2023
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The Regular Meeting of the Ames City Council was called to order by Mayor John Haila at 6:07
p.m. on the 11th day of July, 2023, in the City Council Chambers in City Hall, 515 Clark Avenue,
pursuant to law. Present were Council Members Bronwyn Beatty-Hansen, Amber Corrieri, Tim
Gartin, Rachel Junck, and Anita Rollins. Ex officio Tabitha Etten was also present. Council
Member Gloria Betcher was absent.
PROCLAMATION FOR “PARKS AND RECREATION MONTH,” JULY 2023: Parks and
Recreation Director Keith Abraham accepted the proclamation with Recreation Superintendent
Courtney Kort.
PRESENTATION COMMEMORATING AMES’ 30-YEAR ANNIVERSARY AS SISTER
CITY WITH KOSHU CITY, JAPAN: Cindy Hicks, Chair of the Ames International Partner
Cities Association, provided the presentation along with Eric Smidt, Vice President of Marketing
and Communications for the Ames Chamber of Commerce.
CONSENT AGENDA: Mayor Haila noted that the agenda had been amended to include an
Additional Item setting July 27, 2023, as a Regular City Council Meeting. He also stated that staff
had requested to pull Item No. 7.
Moved by Beatty-Hansen, seconded by Corrieri, to approve the consent agenda as amended less
Item No. 7.
3. Motion approving payment of claims
4. Motion approving Summary of Minutes of Special Meeting on June 20, 2023, and Summary
of Regular Meeting on June 27, 2023
5. Motion approving Report of Change Orders for period June 16 – 30, 2023
6. Motion approving Civil Service Candidates
Additional Item: Motion setting July 27, 2023, as an additional Regular City Council meeting
beginning at 6:00 p.m.
7. Motion approving new Special Class C Retail Alcohol License – Alluvial Brewing Company,
3715 West 190th Street, Pending Dramshop Review
8. Motion approving new Class C Retail Alcohol License – Rinconcito Hispano Tienda Y
Taqueria, 838 Wheeler Street Suite #1
9. Motion approving ownership updates for Class F Retail Alcohol License – Green Hills
Residents’ Association, 2200 Hamilton Drive, Suite 100
10. Motion approving five-day license (July 24 – 28, 2023) Special Class C Retail Alcohol License
– Thirsty Pigs, LLC, 3600 University Boulevard, Pending Favorable Inspection
11. Motion approving the renewal of the following Beer Permits, Wine Permits, and Liquor
Licenses:
a. Class C Liquor License – Applebee’s Neighborhood Grill & Bar, 105 Chestnut Street
b. Class C Liquor License with Living Quarters – Sportsman’s Lounge, 123 Main Street
c. Class E Liquor License – AJ’s Liquor II, 2515 Chamberlain Street
d. Special Class C Liquor License – Huhot Mongolian Grill, 703 S. Duff Avenue
Suite#105
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e. Class C Liquor License – 313 Bar, 115 5th Street
12. RESOLUTION NO. 23-394 authorizing the expenditure of $5,000 ($4,000 Council Operating
Budget and $1,000 Ames Human Relations Commission) in support of the 2023 Symposium
on Building Inclusive Organizations
13. RESOLUTION NO. 23-395 approving contract renewal for the purchase of oils, lubricants,
and fluid analysis with Diamond Oil Company of Des Moines, Iowa for the Fleet Services and
Transit in accordance with unit prices bid for FY 2023/24
14. RESOLUTION NO. 23-345 approving contract renewal with Pioneer Industrial Corporation,
Kansas City, Missouri, for the Valve Maintenance, Related Services and Supplies Contract in
an amount not to exceed $85,000
15. RESOLUTION NO. 23-396 approving contract renewal with MPW Industrial Water Services,
Inc. of Hebron, Ohio for Bottle Exchange Program and Related Services Contract for the
Power Plant, for one year period from date of award through June 30, 2024, in an amount not
to exceed $50,000
16. RESOLUTION NO. 23-397 approving Change Order 2, the balancing Change Order, for the
2020/21 Right of Way Restoration (Standard Vegetation), a contract reduction in the amount
of $42,408.46
17. Water Pollution Control Facility Biosolids Disposal
a. RESOLUTION NO. 23-398 accepting completion of the FY 2022/23 biosolids contract
in a final amount of $89,200.30
b. RESOLUTION NO. 23-399 awarding the FY 2023/24 contract for biosolids disposal
to Wulfekuhle Injection and Pumping, Peosta, Iowa, with payment based on the unit
prices bid of $5,000.00 lump sum for mobilization/demobilization and $0.0275/gallon
for biosolids hauling operations, with the total contract amount not to exceed
$92,187.50
Roll Call Vote: 5-0. Motions/Resolutions declared carried/adopted, signed by the Mayor, and
hereby made a portion of these Minutes.
PUBLIC FORUM: Mayor Haila opened the Public Forum.
Rick Exner, 1014 Murray Drive, Ames, spoke in regards to the proposed Minimum Property
Maintenance Ordinance, sharing his support to lower the 10-foot clearance above the sidewalk.
Ken Platt, 3620 Woodland Street, Ames, shared his concern regarding the removal of the stop
signs at the intersection of Woodland Street and West Street, urging the City Council to consider
reinstallation to ensure pedestrian safety.
Mayor Haila closed the Public Forum when no one else came forward to speak.
REQUESTS FROM AMES MAIN STREET FOR RAGBRAI ON MAIN ON TUESDAY,
JULY 25: Crystal Davis of the Ames Chamber of Commerce and Kevin Bourke of Discover Ames
were available for questions.
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The Public Input was opened and closed by Mayor Haila when no one came forward to speak.
Moved by Corrieri, seconded by Junck, to approve a blanket Temporary Obstruction Permit for
closed area.
Vote on Motion: 5-0. Motion declared carried unanimously.
Moved by Beatty-Hansen, seconded by Gartin, to approve 5-day (July 25-29) Class C Liquor
Retail Alcohol License with Outdoor Service for Ames Main Street for closed area.
Vote on Motion: 5-0. Motion declared carried unanimously.
Moved by Gartin, seconded by Rollins, to adopt RESOLUTION NO. 23-400 approving closure of
the following: Main Street, from just east of the Wells Fargo drive through entrance to the east
entrance to the CBD lot on the 100 Block; Burnett Avenue, from Main Street to the U.S. Bank
drive-through entrance; Kellogg Avenue, from the CBD lot to Main north to 5th Street; Douglas
Avenue, between Main Street and 5th Street; Tom Evans Plaza.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
Moved by Gartin, seconded by Junck, to adopt RESOLUTION NO. 23-401 approving closure of
147 metered parking spaces, suspension of parking regulations and waiver of fees within closed
area form 6:00 a.m. Tuesday July 25, until 9:00 a.m. Wednesday July 26.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
Moved by Rollins, seconded by Junck, to adopt RESOLUTION NO. 23-402 approving usage and
waiver of electrical fees for event.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
Moved by Rollins, seconded by Gartin, to adopt RESOLUTION NO. 23-403 approving waiver of
enforcement of Section 17.16 of Municipal Code related to minors prohibited on certain premises
with respect only to proposed downtown entertainment area for event.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
Moved by Gartin, seconded by Beatty-Hansen, to adopt RESOLUTION NO. 23-404 approving
waiver of enforcement of Section 17.17 of Municipal Code related to alcohol consumption in parks
with respect only to Tom Evans Plaza for event.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
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HEARING ON PROPOSAL TO ENTER INTO A SEWER REVENUE LOAN AND
DISBURSEMENT AGREEMENT TO BORROW MONEY THEREUNDER IN A
PRINCIPAL AMOUNT NOT TO EXCEED $2,150,000: Mayor Haila opened and closed the
Public Hearing when no one came forward to speak.
Moved by Rollins, seconded by Junck, to adopt RESOLUTION NO. 23-405 instituting proceeding
to take additional action for the authorization of a Loan and Disbursement Agreement and the
issuance of not-to-exceed $2,150,000 Sewer Revenue Bonds (SRF Loan).
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
Moved by Junck, seconded by Corrieri, to adopt RESOLUTION NO. 23-406 approving final plans
and specifications and awarding contract to Jet Drain Services, LLC in the amount of
$1,353,819.00 for the Sanitary Sewer Rehabilitation – US HWY 69 Spot Repairs.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
Moved by Junck, seconded by Gartin, to adopt RESOLUTION NO. 23-407 approving contract
and bond with Jet Drain Services, LLC.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
HEARING ON PROPOSAL TO VACATE THE EXISTING FIFTEEN FEET (15’) PUBLIC
UTILITY EASEMENT LOCATED BETWEEN LOTS TWO (2) AND THREE (3), NORTH
DAYTON INDUSTRIAL SUBDIVISION, FIRST ADDITION, AMES, IOWA: The Public
Hearing was opened and closed by Mayor Haila when no one came forward to speak.
Moved by Gartin, seconded by Junck, to adopt RESOLUTION NO. 23-408 approving vacating
Public Utility Easement.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
HEARING ON REZONING OF 314 BORNE AVENUE FROM GENERAL INDUSTRIAL
(GI) TO GOVERNMENT/AIRPORT DISTRICT (S-GA): Mayor Haila opened the Public
Hearing.
Rod Mumm, 5620 McFarland Avenue, Ames, shared his concerns as the property owner of an
adjacent parcel regarding water runoff and storm sewer intake. He further discussed pollution and
litter from the Resource Recovery Plant, which he urged the City Council to address.
Ralph Goebel, 1518 Wilson Avenue, Ames, shared that he was also a property owner of an
adjacent parcel, and he had similar concerns regarding water runoff and land damage from erosion.
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Mayor Haila closed the Public Hearing when no one else came forward to speak.
Moved by Gartin, seconded by Beatty-Hansen, to pass on first reading an ordinance rezoning 314
Borne Avenue from General Industrial (GI) to Government/Airport District (S-GA).
Roll Call Vote: 5-0. Motion declared carried unanimously.
HEARING ON ZONING TEXT AMENDMENT TO THE PARKING STANDARDS FOR
RETAIL SALES AND SERVICES-GENERAL TO TWO SPACES PER 1000 SQUARE
FEET: The Public Hearing was opened and closed by Mayor Haila when no one came forward to
speak.
Moved by Beatty-Hansen, seconded by Junck, to pass on first reading an ordinance on a Zoning
Text Amendment to the parking standards for retail sales and services -general to two spaces per
1000 square feet.
Roll Call Vote: 5-0. Motion declared carried unanimously.
ZONING AGREEMENT FOR 4098 E 13TH STREET: Planning and Housing Director Kelly
Diekmann shared that the agreement was consistent with the original proposal and staff was
recommending approval.
Moved by Beatty-Hansen, seconded by Gartin, to adopt RESOLUTION NO. 23-409 approving
Zoning Agreement for adoption of the Master Plan for 4098 E 13th Street.
Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
THIRD READING AND ADOPTION OF ORDINANCE NO. 4505 ON REZONE WITH
MASTER PLAN FOR 4098 E 13TH STREET (JT WAREHOUSE): Moved by Gartin,
seconded by Rollins, to pass on third reading and adopt ORDINANCE NO. 4505.
Roll Call Vote: 5-0. Motion declared carried unanimously.
DISPOSITION OF COMMUNICATIONS TO COUNCIL: Mayor Haila noted there were nine
items to consider.
The first was a letter from Ken Platt, Ames Resident about safety concerns regarding removal of
stop sign.
Moved by Gartin, seconded by Junck, to request a memo from staff.
Vote on Motion: 5-0. Motion declared carried unanimously.
A letter from Bill Zinnel, Erich Kretzinger, and Shawn Bryant, Boone County Board of
Supervisors, was the second item regarding diverting construction and demolition waste from the
Boone County landfill. Mayor Haila noted that the item was for information only.
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The third item was a letter from Sam Stagg and Crystal Davis of Ames Main Street regarding
Design Services for Downtown Enhancements Partnership.
Moved by Corrieri, seconded by Junck, to place the item on a future agenda with additional
information from staff outlining the scope of services and requested funding amount.
Vote on Motion: 5-0. Motion declared carried unanimously.
An email from Richard Gladon of Ascension Lutheran Church regarding the installation of traffic
light at Hyde Avenue and Bloomington Road was the fourth item.
Moved by Gartin, seconded by Rollins, to request a memo from staff.
Vote on Motion: 5-0. Motion declared carried unanimously.
The fifth item was a memo from Director Diekmann regarding the presentation of feedback of
Downtown Public Input Meetings on August 22, 2023. Mayor Haila noted that the item was for
information only and no action was needed at this time.
A letter from Ana McCracken, Ames Writers Collective requesting an Amendment to Art Capital
Grant was the sixth item.
Moved by Gartin, seconded by Rollins, to request a memo from staff.
Vote on Motion: 5-0. Motion declared carried unanimously.
The seventh item was an email from Dévon Lewis, Dennis and Carol Barrick, Helen Jensen, and
Robert Ewald regarding an application for the National Register of Historic Places for the
Chautauqua Park and Brookridge Addition Neighborhood.
Moved by Gartin, seconded by Rollins, to direct the Planning and Housing Director to respond to
the email requesting an update be provided to the City Council when the neighborhood had
completed outreach.
Vote on Motion: 5-0. Motion declared carried unanimously.
A memo from Chief of Police Geoff Huff regarding Urination and Defecation in Public was the
eighth item.
Moved by Corrieri, seconded by Gartin, to request the City Attorney return with the proposed
changes as outlined in an ordinance.
Vote on Motion: 5-0. Motion declared carried unanimously.
The last item was a memo from Director Diekmann regarding a request for a waiver to subdivide
land in Story County within the Ames Urban Fringe.
Moved by Gartin, seconded by Junck, to place the item on a future agenda.
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Vote on Motion: 4-1, Corrieri dissenting. Motion declared carried.
COUNCIL COMMENTS: The Mayor and Council Members reported on various meetings
attended, upcoming meetings, community events, and items of interest.
Moved by Gartin, seconded by Corrieri, to designate a City staff member to serve in lieu of the
appointed member of the City Council for the Ioway Creek Watershed Management Authority and
Headwaters of the South Skunk Watershed Management Authority.
Vote on Motion: 5-0. Motion declared carried unanimously.
Moved by Gartin, seconded by Corrieri, to place discussion of a sidewalk maintenance policy on
a future agenda.
Vote on Motion: 4-1, Beatty-Hansen dissenting. Motion declared carried.
ADJOURNMENT: Moved by Gartin, seconded by Beatty-Hansen, to adjourn the meeting at
7:28 p.m.
Vote on Motion: 5-0. Motion declared carried unanimously.
__________________________________ ____________________________________
Carly M. Watson, Deputy City Clerk John A. Haila, Mayor
__________________________________
Renee Hall, City Clerk
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)
Electric
Services
Ames Plant to Northeast
Ankeny 161 kva
Transmission Line
Relocation, Iowa DOT I-35
Project 2023
1 $2,171,669.20 Primoris Electric, Inc $0.00 $0.00
Change
Completion
Date to
10/24/24
C. Spence KS
Public Works ESRI Software Renewal 1 $66,000.00 ESRI $0.00 $500.00 M. Ritter KS
Public Works Ames Downtown Plaza 6 $4,633,000.00 Henkel Construction
Company
$-(83,891.53) $5,806.49 K. Abraham KS
Electric
Services
Emergency Utility Repair
and Related Services
Contract
3 $50,000.00 Ames Trenching &
Excavating, Inc
$3,000.00 $194.78 D. Kom AM
$ $ $
$ $ $
Period: 1st – 15th
16th – End of Month
Month & Year: July 2023
For City Council Date: July 27, 2023
Item No. 3
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ITEM # ___4___
DATE: 07/27/23
DEPT: ___HR__
COUNCIL ACTION FORM
SUBJECT: CONTRACT RENEWAL FOR WORKERS’ COMPENSATION AND
MUNICIPAL FIRE AND POLICE SYSTEM MEDICAL CLAIMS
ADMINISTRATION
BACKGROUND:
The City contracts with EMC Risk Services, LLC, of Des Moines, Iowa, to provide third
party administration of workers’ compensation and Municipal Fire and Police “411
System” injury medical claims. The City’s current contract with EMC for these services
will expire July 31, 2023. EMC has provided a renewal contract for the same services
for the period from August 1, 2023 to July 31, 2024.
Services provided by EMC in this contract include workers’ compensation claims
administration for all City employees, medical bill review, self-insured loss fund
management, and pharmacy and medical expense consultation. EMC also performs
regulatory filings and maintains an online claims database accessible to City staff.
Additionally, EMC collects for medical bill review and savings identified through that
process. The fees, along with actual claims expenses are charged to individual
departments.
The table below compares the FY 2022/23 fees to the proposed FY 2023/24 fees.
There are slight increases for medical claim set up and lost time claim set up.
Fee Component Fee Components
FY 2022/23
Fee Components
FY 2023/24 Change
Claim Set Up, Incident Only $35 per claim $35 per claim 0%
Claim Set Up, Medical Only $215 per claim $240 per claim 12%
Claim Set Up, Lost Time $1,099 per claim $1,122 per claim 2%
Medical Bill Review Fees &
Reimbursement
$9.50/claim
30% of Savings
$10,000/bill cap
$9.50/claim
30% of Savings
$10,000/bill cap
0%
0%
0%
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ALTERNATIVES:
1. Approve the contract renewal with EMC Risk Services, LLC, of Des Moines Iowa,
to provide third party administration of the City’s worker’s compensation and
municipal fire and police “411 System” claims for August 1, 2023 through July 31,
2024.
2. Reject the EMC renewal option and direct City staff to seek other claim s
administration alternatives.
CITY MANAGER’S RECOMMENDED ACTION:
EMC Risk Services, LLC, has been an effective provider of professionally administered
workers’ compensation claims and associated services. Its staff has been responsive
and sensitive to the needs of City employees in managing their injury and disability
claims. The online claims system makes cost and other data accessible to City staff and
provides a frequently utilized tool for analyzing injury types and safety program
effectiveness.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, as described above.
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ITEM #: 5
DATE: 07-27-23
DEPT: P&H
COUNCIL ACTION FORM
SUBJECT: AWARD OF CONTRACT FOR DEMOLITION OF BUILDING AT 621
GRAND AVENUE IN CONJUNCTION WITH COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM (CDBG)
BACKGROUND:
As part of the City’s 2022-23 Community Development Block Grant (CDBG) Slum and
Blight Removal Program, the property at 621 Grand Avenue was purchased in March
2023. The property had been declared a dangerous building by the Inspection Division.
Due to long-term abandonment, water damage from a leaky roof, and the habitation of
animals, the property became contaminated with black mold, animal feces, animals, and
other potential contaminants.
The property still contained furniture, numerous appliances, clothing, garbage, and trash
in the entire house, including the basement, and contained asbestos materials. In April
2023, staff solicited bids for the removal of the trash and debris. That work was separate
from this bid, which includes asbestos removal and demolition.
On June 14, 2023, an Invitation to Bid (ITB) document was posted to AmesBids, the
electronic bidding site. A total of 26 potential bidders viewed the bid opportunity. On July
14, 2023, bids were received as follows:
Staff has reviewed the bids and determined that the low bid from RK Demolition is
acceptable. A contract award to RK Demolition must be contingent on receiving
acceptable performance and payment bonds. CDBG funding under the Slum and Blight
program will pay for the demolition.
ALTERNATIVES:
1. Award a contract to RK Demolition of Slater, IA for the asbestos removal and
demolition of 621 Grand Avenue in connection with the City’s 2022-23 CDBG Slum
Bidder Base Bid Project Completion Date
RK Demolition, Slater, IA $77,380.00 September 30, 2023
Keith Cooper & Sons, Inc., Ames, IA $77,675.00 August 31, 2023
J. Pettiecord, Inc., Boudurant, IA $88,750.00 August 31, 2023
Servpro Of Ames, Ames, IA $96,543.36 September 22, 2023
LinnCo, Inc., Sartell, MN $110,000.00 August 11, 2023
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and Blight Removal Program, in the amount not to exceed $77,380 (contingent on
receipt of acceptable performance and payment bonds).
2. Award the contract to another bidder.
3. Reject the bids and do not proceed with demolition of the building.
CITY MANAGER’S RECOMMENDED ACTION:
By awarding the contract to RK Demolition of Ames, IA, the City-owned dangerous
building property at 621 Grand Avenue will be demolished and no longer be a health and
safety issue in this vial core neighborhood. The demolition will allow the property to be
used for a future residential use. Therefore, it is the recommendation of the City Manager
that the City Council adopt Alternative No. 1, as described above.
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ITEM#: 6
DATE: 07-27-23
DEPT: Transit
COUNCIL ACTION FORM
SUBJECT: CYRIDE AWARD OF CONTRACT FOR FY 2024 FUEL PURCHASES
BACKGROUND:
Since 2015, CyRide has been buying fuel using twelve-month contracts that determine
the purchase price based on a market rate plus a markup (or less a deduction). Bidding
fuel contracts for a twelve-month period reduces administrative costs while still allowing
CyRide to take advantage of competitive bidding. CyRide released a fuel bid in May of
this year which resulted in a single bid response. The single bid was rejected by the
Transit Board and staff was directed to rebid the fuel contract to seek additional
competition.
On June 29, 2023, CyRide, with the assistance of the Purchasing Division, released an
Invitation to Bid for the purchase of diesel fuel from August 1, 2023, through June 30,
2024. The procurement documents set a contract not -to-exceed amount equal to
CyRide’s fuel budget of $1,572,500 for fiscal year 2023/24. Bids were due July 13, 2023,
and three suppliers submitted bids. The table below reflects the markup/deduction each
supplier offers from the market rates.
Bid No. 2023-228
(8/1/23 – 6/30/24)
#1 Dyed
ULSD Diesel
#2 Dyed
ULSD Diesel
Biodiesel
Magellan’s
Cold Flow
Improver
Renewable
Energy Group
(REG)
$0.0275 $0.0300 -$1.0000 $0.0100
Mansfield Oil
Company -$0.0071 $0.0261 -$0.5770 $0.0300
New Century FS $0.3000 $0.3000 $0.3000 $0.0400
Upon reviewing the three responses, the bid was determined to be competitive and a
reflection of current market conditions. CyRide staff performed a bid analysis based on
the quantities of fuel consumed from July 1, 2022, through June 30, 2023. Based upon
this analysis (attached), Renewable Energy Group was determined to be the lowest
overall bidder. While Mansfield Oil Company had the larger discount on #1 and #2 diesel,
REG provided the best total price overall due to a more substantial discount on biodies el.
The Transit Board of Trustees approved award of contract and the not-to-exceed amount
at its meeting on July 20, 2023.
2
ALTERNATIVES:
1. Award a contract to Renewable Energy Group of Ames, Iowa, for fuel purchases
from August 1, 2023, until June 30, 2024, at a not-to-exceed amount of
$1,572,500.
2. Reject all bids and do not award a fuel contract.
CITY MANAGER’S RECOMMENDED ACTION:
The bid from Renewable Energy Group of Ames, Iowa reflects the lowest price for CyRide
to purchase fuel for the FY 2023/24 budget year while reducing administrative costs.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, as described above.
#1 ULSD #2 ULSD 5% Biodiesel
Magellan's Cold
Flow Improver
$0.0275 $0.0300 -$1.0000 $0.0100
-$0.0071 $0.0261 -$0.5770 $0.0300
$0.3000 $0.3000 $0.3000 $0.0400
#1 ULSD #2 ULSD Biodiesel
Magellan's Cold
Flow Im rover
Total Gallons
Diesel &
Biodiesel
Total Budget
Amount
20,000 260,000 16,000 84,000 296,000 $814,000.00
$3.20 $2.70 $5.89
$64,550 $709,800 $78,240 $840 $853,430.00
$63,858 $708,786 $85,008 $2,520 $860,172.00
$70,000 $780,000 $99,040 $3,360 $952,400.00
Pro Forma Fuel Budget
Annual Gallons
PriceAssumptions
Bid No. 2023-228
New Century FS
Responses
Mansfield Oil Company
Renewable Energy Group
Renewable Energy Group
Mansfield Oil Company
New Century FS
1
ITEM#: 7
DATE: 07-27-23
DEPT: Transit
COUNCIL ACTION FORM
SUBJECT: CYRIDE 2023 SHOP REHABILITATION PROJECT PLANS AND
SPECIFICATIONS
BACKGROUND:
In September 2022, CyRide received $581,566 in Iowa DOT Public Transit Infrastructure
Grant (PTIG) funding for the Shop Rehabilitation project. The shop area was originally
constructed in 1983 and is no longer fully meeting CyRide’s needs. This project aims to
consolidate bus parts into one location, improve maintenance employees’ work
environment, support employee efficiency, and adjust workspaces to enhance safety. The
scope of this project includes the following improvements:
• Remove existing half-walls within the maintenance fabrication area.
• Install new precast concrete floor panels to connect the east and west
maintenance mezzanines, creating additional second-floor storage space adjacent
to the shop.
• Construct a ground-level wall and add two doors to isolate the repair bays from the
office and parts areas to help control sound pollution and vapors between the
spaces.
• Move the mop sink, wash fountain, and supplies closer to the shop repair bays to
improve the mechanics’ workflow.
• Move the eye wash closer to the repair bay work areas to improve safety.
• Switch the welding and fabrication area with the parts room to isolate airborne
particulates, noise pollution, and visual welding hazards to improve safety.
Additionally, this modification allows easier de livery of parts, with the parts room
being directly inside the vendor delivery area.
• Rework the maintenance office area to create a more practical layout for the
current number of employees and create a space for the Maintenance Coordinator
to have supervisory conversations.
• Improve the fire alarm and suppression system to bring the reworked spaces up
to code.
The cost estimate from the architectural and engineering consultant is $750,000,
including an 8.7% contingency fund.
CyRide has the following funding available for this project, which was included in the FY
2023/24 Capital Improvements Plan:
2
Funds Available Dollars
State PTIG Funds $581,566
Local Funds $168,434
Total Project Funding $750,000
If approved by Council, CyRide staff will work with the Purchasing Division to bid the
project. Listed below is the proposed schedule for this project.
Date Project Element
July 27, 2023 City Council approval of plans & specifications
July 28, 2023 Project release
August 23, 2023 Bids due
August 31, 2023 Transit Board report of bids and award of contract
September 12, 2023 City Council report of bids award of contract
At the July 20, 2023, meeting, the Transit Board approved project plans and specifications
for the CyRide 2023 Shop Rehabilitation Project. Architectural drawings and
specifications are now on file in the City Clerk’s Office.
ALTERNATIVES:
1. Approve the release of plans and specifications for the CyRide 2023 Shop
Rehabilitation project, set the bid due date as August 23, 2023, and establish
September 12, 2023, as the date of report of bids to the City Council.
2. Do not approve the plans and specifications for this project.
CITY MANAGER’S RECOMMENDED ACTION:
Approval of the plans and specifications would allow CyRide to update outdated shop
areas to significantly improve safety, air quality, noise pollution, storage space, and office
layouts. Therefore, it is the recommendation of the City Manager that the City Council
adopt Alternative No. 1, as described above.
MEMO
City Clerk’s Office
To: Mayor and Members of the City Council
From: City Clerk’s Office
Date: July 27, 2023
Subject: Contract and Bond Approval
There is no Council Action Form for Item No. 8. City Council approval of the contract
and bond for this project is simply fulfilling a State Code requirement.
/cmw
1
Staff Report
FITCH FAMILY INDOOR AQUATIC CENTER UPDATE
July 27, 2023
BACKGROUND:
There are three design phases when proceeding with a large project such as the Fitch
Family Indoor Aquatics Center:
Schematic Design (SD)
Design Development (DD)
Construction Documents (CD)
In each phase, the design of the facility is further refined, along with the cost estimates.
Included in the 2023-28 Capital Improvement Plan (CIP) is a total estimated budget for the
Fitch Family Indoor Aquatic Center of $33,705,972.
SCHEMATIC DESIGN PHASE:
On March 28, 2023, staff reviewed with Council the results of the Schematic Design (SD)
Phase of the project. The estimated construction cost, excluding the walking track addition,
at that time was $23,658,905, which was $3,158,905 above the budgeted $20,500,000. At
that meeting, the City Council clarified its priorities for the project so staff could use these
to make decisions to reduce the estimated construction cost. The priorities of the Council
included:
Quality and longevity of materials
Energy efficiency
Minimizing maintenance
Impact on operations
Service levels
Sustainability
Through Schematic Design value engineering, the design team was able to reduce
the estimated construction cost by $3,039,023 to a new estimate of $20,619,882,
excluding the walking track addition. The value engineering changes include, but
are not limited to, the following:
1. Changing floor finishes
2. Eliminating two universal/family change rooms
3. Having painted concrete walls instead of studs and drywall
4. Having painted exposed structure instead of Acoustical Ceiling Tiles
5. Reducing the square footage of the building
2
6. Staining the exterior of the pre-cast concrete panels in lieu of stone veneer
7. Reducing interior glass
8. Reducing exterior glass
9. Reducing HVAC budget
10. Lowering all walls and structure one foot
11. Reducing width of aisles in parking lot
DESIGN DEVELOPMENT PHASE:
During the most recent Design Development phase, several steps occurred to better
define what the building will look like and begin identifying equipment needs and material
quantities. These steps include reconciling differences between cost estimates and
developing a second set of value engineering options.
FLOOR PLAN OPTIONS:
The Design Development Phase also included the refinement of two floor plan options:
1) A Base Bid (which includes the aquatic components and related amenities), and 2) A
Base Bid and Add Alternate (which adds a walking track and multipurpose space). At a
previous meeting, City Council directed staff to split the project as described due to
concerns regarding whether there was sufficient funding to build the larger version of
the project.
Spaces in the base bid include a six-lane 25-yard lap pool, zero-depth entry pool with a
current channel, therapy pool, one body slide, men’s and women’s locker rooms, six
universal/family change rooms, wet classroom/party room, check-in area, lobby with two
universal restrooms, and support spaces. The add alternate includes a walking track,
multipurpose space, and two additional universal restrooms. The two floor plans are
shown below:
Base Bid – 31,950 Gross Square Feet
3
Base Bid Plus Alternate – 38,900 Gross Square Feet
BUILDING RENDERINGS:
A majority of the building is currently designed with a combination of colored and non-
colored pre-cast concrete insulated panels. A portion of the south facing wall will be a
combination of glass and concrete, as this will be the most visible side of the building.
Some glass will have a treatment to minimize glare on the pool surfaces. The structure
is designed to support solar panels on the roof as well as HVAC equipment. Floor
finishes include brushed concrete, polished concrete, ceramic tile, carpeting, and
resilient flooring (add alternate only). Interior walls will include pre-cast concrete panels,
concrete block, and gypsum board. Lighting will be LED and supplemented with natural
light where possible.
Renderings below from different angles show the base bid and the base bid with
alternate. Final colors are yet to be determined.
Base Bid – Looking North
4
Base Bid Plus Alternate – Looking North
Base Bid – Looking Northwest
Base Bid Plus Alternate – Looking Northwest
5
Base Bid – Looking South
Base Bid Plus Alternate – Looking South
Base Bid – Looking Southwest
6
Base Bid Plus Alternate – Looking Southwest
DESIGN DEVELOPMENT COST ESTIMATE:
In the Design Development Phase, the estimated construction cost for the base bid only
has been revised to $21,481,717, or $981,717 more than the $20,500,000 originally
budgeted for the construction of the project (excluding the construction of the walking
track addition). This amount is indicated in Table 1, below, in the “Design Development
Estimate” column.
This estimate was created using today’s prices and adding a 2% escalator since bidding
will not occur until later this year. All the other items are either actuals (land), contracted
amounts (design, construction manager), or allotments set by staff (the remainder of the
items).
Following the Design Development phase, a second round of value engineering
occurred to identify cost-reducing opportunities that save a total of $888,224 (see
Attachment A). This effort resulted in a new estimate of $20,593,493, or $93,493
more than what is budgeted for construction excluding the walking track addition
(see column 3 of Table 1, below).
WALKING TRACK ADD ALTERNATE:
In April 2022, the cost estimate from Stecker-Harmsen for the walking track add
alternate was $3,000,000. At the end of Schematic Design, the estimate was revised
to $2,391,236. The estimated cost for the add alternate is now $1,800,000. This
amount has been added to the overall project costs in Table 1. This estimate
assumes the Alternate is added to the base bid and completed at the same time.
7
Table 1.
Fitch Family Indoor Aquatic Center Estimated Expenses
Table 2 outlines the funding sources for the project. Column one (“Original Budget”)
reflects the information included in the CIP, which was sufficient to finance the
construction of the Base Bid portion of the project (using estimates known at that time).
The second column shows the potential funding based on the most recent information.
The difference between the two columns in funding comes from three sources, 1) G.O.
Bonds, 2) Donations, and 3) American Rescue Plan Act (ARPA) funds.
Original Budget Potential Funding
Hotel/Motel Tax $ 64,893 $ 64,893
G.O. Bonds 19,334,284 *20,854,146
Geitel Winakor Donation Fund 1,950,000 1,950,000
Donations 8,356,795 8,361,745
Community Attraction & Tourism (CAT) Grant **500,000 --
Story County Contribution 500,000 500,000
ARPA Funding -- 868,681
Total $ 30,705,972 $ 32,599,465
*Council authorized up to $21,200,000 in G.O. bonds on September 14, 2021
Donations have increased by $4,950. As explained during CIP presentations, $868,681
in ARPA funds was set aside for this project, but not included in the Original Budget.
While Council authorized issuing up to $21,200,000 in G.O. Bonds, only
$19,334,284 is reflected in the original budget. Therefore, the authority exists to
Projected
Budget
Design
Development
Estimate
Design
Development
with Value
Engineering
Conceptual Design/ Environmental Testing $ 64,893 $ 64,893 $ 64,893
Land 2,900,000 2,900,000 2,900,000
Relocate Electric Lines 75,000 75,000 75,000
Design 1,783,850 1,783,850 1,783,850
Remediation/Mitigation 1,000,000 1,000,000 1,000,000
Construction Manager (CM) 1,392,229 1,392,229 1,392,229
Soils, Survey, Testing (SST) 390,000 390,000 390,000
Construction 20,500,000 21,481,717 20,593,493
Furniture, Fixtures, & Equipment (FFE) 500,000 500,000 500,000
Base Bid Project Subtotal 28,605,972 29,587,689 28,699,465
Contingency 2,100,000 2,100,000 2,100,000
Add Alternate – Walking Track Addition 3,000,000 1,800,000 1,800,000
Total Project $ 33,705,972 $ 33,487,689 $ 32,599,465
Table 2.
Fitch Family Indoor Aquatic Center Estimated Revenues
8
issue an additional $1,865,716 in bonds for this project.
CAT Grant Funding – The original budget included an anticipated $500,000 CAT grant
to support the project. Staff submitted an application for these funds, but was recently
notified that the City did not receive an award. Staff has been encouraged to reapply in
August 2023. However, based on the most recent Design Development cost estimates,
there appears to be sufficient funding without the CAT grant to construct the project.
CAT grant funds are not typically awarded except as “last dollar” funds necessary to
cover any gap in the funding and allow a project to proceed. Therefore, the “Potential
Budget” column of Table 2 reflects receiving no CAT grant funds and issuing another
$1,519,862 in G.O. Bonds.
Although the CAT grant funds would not likely be awarded to the project at this stage due
to the construction estimates indicating the project can be built within the existing funding,
staff believes it is important to remain prepared to apply for a CAT grant. This is for
several reasons: 1) the project cost estimates may still fluctuate before the design is
finalized, 2) the actual construction bids received may exceed the design estimates, and
3) there exists potential for environmental remediation costs exceeding the budgeted
amount for remediation as the project moves forward. If any of these situations occur, the
project cost could begin to exceed the available funding and justify a CAT grant
application.
ADDITIONAL MISCELLANEOUS ACTIVITIES:
In the past few months, staff also has been working on several miscellaneous activities
related to the overall project. Two of these activities are explained below.
Geothermal Wells – The Iowa Department of Natural Resources (IDNR) determined that
vertical geothermal wells will not be allowed at the site due to the potential risk of
contaminating the aquifer below the property. However, IDNR indicated horizontal wells
may be a possibility; but required five additional borings to be drilled to a depth of 45 feet
prior to deciding whether horizontal wells could be feasible.
On May 22-23, Impact7G drilled the borings with one of the borings remaining as a
monitoring well. After reviewing the results, IDNR has given limited approval to
proceed with a horizontal well field in accordance with the details included in
Attachment B. This limited approval confines the geothermal well field to the northwest
portion of the site. In addition, approval is required from Story County, and the IDNR
requires specific construction methods to be used during the installation of the wells.
In conversations with KCL Engineering (sub-consultant), there is an energy efficiency
benefit to pursuing geothermal wells. Therefore, the geothermal wells are included in
the project design.
9
Stormwater Management – Discussions continue between City staff and consultants
regarding managing stormwater. The options for stormwater management are either: 1)
on-site management or 2) combination of on-site and off-site management. In both
options, a bioretention cell will be situated in the southwest corner of the site. With Option
1, managing all stormwater on-site is possible if permeable pavers and underground
storage is part of the design. The cost of the pavers and underground storage alone is
approximately $192,000. The second option of managing some stormwater off-site within
the same watershed has an estimated cost of $60,000. Therefore, staff is continuing to
pursue Option 2, and as a result the estimated project cost currently reflects this
lower cost option.
STAFF COMMENTS:
If the Design Development estimates hold true for a total project cost of $32,549,465, it
appears that there are sufficient funds to finance the base project along with the walking
track addition, and only need to issue a total of $20,854,146 out of the $21,200,000 in G.O.
Bonds authorized by the City Council. This total is $345,854 less than the maximum
amount of bonds that the Council has the authority to issue.
Although it appears with the current estimates that there is sufficient funding for the project
(including the walking track add alternate) under the current bond authorization, Council
should remember that one final project cost estimate will be prepared at the completion of
the Construction Document phase, prior to soliciting construction bids. Council is not
being asked to make any decisions on July 27, but is instead asked to learn and
understand what has been happening regarding this project.
NEXT STEPS:
Moving forward, staff and the Design Team will work on the following items:
Begin the Construction Documents Phase.
Seek approval from Story County for the geothermal well field.
Finalize the stormwater management plan, with a preference for partial off-site
management, if possible.
Secure final Iowa Department of Public Health (IDPH) approval for the aquatics
portion of the design.
Submit plans to the City’s Development Review Committee (DRC) for approval.
Provide Council with updated cost estimates at the end of the Construction
Documents phase.
10
o If the cost estimates that the end of the Construction Documents phase
exceed the available budget, staff will present options to the City Council
for alterations or cuts to the project to meet the available funding.
o In the event that cost estimates are significantly less than the available
funding, staff will identify possible add-alternates to incorporate into the bid
package.
Cost Reduction/Value Analysis
Fitch Family Indoor Aquatics Center
Ames, Iowa
Description Amount
Raise Height of Bottom Elevation of Equipment Screen $ (5,964)
Lower Height of Top Elevation of Equipment Screen $ (7,946)
Reduce Strip Exterior Curtain Wall/Storefront $ (27,730)
Modify Angle of South Face $ (18,919)
Reduce Interior Aluminum Storefront $ (12,929)
Standard Side Folding Partition in Lieu of Vertically Folding Partition $ (126,432)
Delete 10 Parking Stalls $ (9,363)
Seed in lieu of Sod $ (36,575)
Delete permeable pavers, rock storage layers, detention, subdrainage $ (191,995)
Offsite Stormwater Management $ 63,630
4" Slab on Grade in lieu of 5" $ (14,600)
Remove Stain from Precast $ (98,009)
Add Integral Color to Precast (Everywhere but East, West and North
Natatorium) $ 52,451
Eliminate Exterior Door in Double Door Location $ (24,728)
Single Wall Aluminum Spiral Duct Non-Insulated in Natatorium $ (86,961)
Pendants in lieu of custom lighting @ lounge area $ (12,726)
Omit tile boarder at Recreation and Lap Pools $ (98,096)
Carefully Manage Design Contingency Thru CD's $ (231,332)
TOTAL OF COST REDUCTIONS $ (888,224)
Design Development Phase Construction Cost Estimate $ 21,481,717
Total of Cost Reductions $ (888,224)
Design Development Construction Cost Estimate with VE $ 20,593,493
WALLACE BUILDING, 502 E 9TH ST, DES MOINES IA 50319
Phone: 515-725-8200 www.IowaDNR.gov Fax: 515-725-8202
June 26, 2023
Mr. Keith Abraham
515 Clark Ave
Ames, IA 50010
Dear Mr. Abraham,
The Iowa DNR Private Well Program has completed their assessment for the potential to install a horizontal
geothermal system for the future Ames Aquatic Center located at 122 North Oak Avenue, Ames, Iowa. The
original idea of a vertical geothermal system is not approved by the DNR due to concerns with contamination
from nearby sites migrating downward when drilling through the glacial till and into the underlying sand and
gravel aquifer, which is the Ames community water supply source delineated within the 2-year capture zone
(Figure 1 – attached). The location is south and west of multiple historical manufacturing, oil, and gas facilities
(Figure 2 from LSI by Impact 7G, 06/14/2023). Limited Subsurface Investigations (LSI) were performed on April
2, 2022 and June 7, 2022 by Impact 7G, which revealed petroleum contamination of the groundwater at the
northeast corner of the site, including volatile organic compounds (VOCs), total extractable hydrocarbons
(TEHs), and polycyclic aromatic hydrocarbons (PAHs). The DNR requested additional borings in order to better
delineate the extent and boundaries of contamination in the soil and groundwater. The latest LSI was performed
on May 23-24, 2023. In summary of all LSIs, groundwater contamination for petroleum related chemicals above
state-wide standards (SWS) has been found at TMW-1 (VOCs), TMW-2 (VOCs and TEHs), Sump #2 (VOCs), Sump
#3 (TEHs), TMW-4 (VOCs and PAHs), and TMW-10 (VOCs and SVOCs).
Based on the findings of the LSIs, the DNR gives a limited approval for horizontal geothermal application on the
northwest portion of the property (see the marked-up Figure 3 from LSI by Impact 7G, 06/14/2023). This
approval is conditional upon the following:
•Story County must approve and permit the geothermal system
•Installation and drilling in the red shaded area of Figure 3 is prohibited
•System depth must not exceed 45 feet or penetrate into the sand and gravel aquifer, whichever is
shallower
•If contamination is suspected at anytime during drilling or system installation, the contractor must
immediately cease work and notify the DNR Spill Hotline 515-281-8694
•The boreholes must be fully grouted and checked for subsidence 24 and 48 hours upon completion
•Any subsidence must be addressed by grouting back to the ground surface and rechecking in 24 hours
If you have any further questions, please feel free to call me.
Kind regards,
Erik Day
Environmental Specialist Senior
Water Supply Engineering Section
515-402-7981
CC: Carmily Stone – Water Supply Engineering Supervisor – Iowa DNR
Deb Williams – Geologist 3 – Iowa DNR
Kimberly Grandinetti –Environmental Health Director – Story County
Matthew Cory – Environmental Specialist – Story County
Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus
DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community,
Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P,
NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri
(Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User
Community
0 180 36090
Feet
Property Location Map
Figure 2. Property Location Map
Iowa DOT Property
122 N. Oak Avenue
Ames, Iowa 50010
[
North
Property
Foororororororororororomememmemerererrrermeerm
Sample Location Map
North
Fig. 3 Sample Location Map
The City of Ames
122 N. Oak Avenue Ames,
Iowa 50010
1st Round LSI Borings
2nd Round LSI Boring/Sump Locations
3rd Round Borings for Geothermal
1
ITEM #: __10__
DATE: 07-27-23
DEPT: _ELEC._
COUNCIL ACTION FORM
SUBJECT: AMENDMENT TO ELECTRIC SERVICES NATURAL GAS SUPPLY
CONTRACT
BACKGROUND:
The Power Plant typically burns between 8,000 and12,000 MMBtu of natural gas daily in
either of its two boilers. The natural gas, along with refuse-derived fuel (RDF), are
combusted to generate electricity. On October 15, 2015, Macquarie Energy LLC was
awarded a 5-year fixed price contract for the purchase of 12,000 MMBtu/per day of
natural gas for Electric Services. Subsequently, a 3-year extension was added which
brings the current contract period through December 31, 2023.
The contract has created efficiency, flexibility, and affordability in the purchase of a
valuable commodity, ensuring that the City has reliable service while creating stable
generation costs.
In consultation with the City’s natural gas consultant, City staff has determined that
between now and September is a prudent time to secure a price and add one to three
years of supply to the existing contract. There are several aspects of a natural gas
contract extension which need to be explained further. These include the price volatility,
impact on electric rates, and impacts to the Resource Recovery utility.
The challenge in arranging a contract extension or soliciting bids on a new gas
contract is determining the price at which to commit. In the natural gas market,
quoted prices expire within a 24-hour period, which is less time than is necessary
to provide notice of a City Council meeting and approve the contract.
When staff negotiated the original contract, the process was handled similarly to the sale
of the City’s bonds. The Council Action Form did not have prices, nor did it identify the
preferred supplier. Bidders faxed their prices to staff hours before the City Council
meeting and a summary report was handed out during the Council meeting where a
decision was made. Although this approach provides competitive pricing between
several suppliers at a single point in time, it may lock the City into a price that would have
been much lower if solicited at a different time of the year.
For the 2024 contract, staff is proposing an alternative to the bid-and-award
system previously used. The current contract has a fixed price for natural gas set at
$2.77 per MMBtu. Future price estimates for one-to-two years out show natural gas
futures in the $3.50 - $5.60 MMBtu range. The prices are higher than the current contract
for a variety of reasons: customer demand, supply constraints, production cost increases,
the uncertainty related to the Russia-Ukraine war, weather forecasts, and other factors.
2
As these prices fluctuate between Council meetings, staff is requesting the
authority to commit the City to a one-, two-, or three-year extension with a goal to
keep cost increases to electric customers to no more than 5%. At current natural
gas contract prices, the potential increase is dependent on market timing and the amount
of gas purchased.
It is important to note that the daily gas allotment, if unused by the Electric utility due to
scheduled or unscheduled outages, can be sold back to the market at spot prices. At
times when the gas can be sold back and spot prices are high, this can be advantageous
to the Electric utility. However, if the spot prices are very low, then the gas must be sold
by the Electric utility to the market at a loss.
IMPACT TO ELECTRIC CUSTOMER BILLS:
The natural gas purchased by Electric represents more than 20% of the overall Electric
utility budget. These natural gas fuel purchases (and sales, if they occur), along with the
cost of purchased power from the market (and sales to the market) are summed monthly
on a rolling 12-month basis, and are converted into an Energy Cost Adjustment (ECA).
The ECA can be either positive or negative, and is an adjustment to the electric rates
adopted by the City Council, applied to customers’ bills each month. The approved FY
2023/24 operating budget includes $13,980,000 for the purchase of natural gas to
operate the Power Plant. This amount reflects an anticipated 3% cost increase to
Electric customers through the ECA compared to the current gas pricing of
$2.77/MMBtu.
If, for example, staff was able to sign a natural gas contract at $3.65/MMBtu for the
purchase of 12,000 MMBtu per day, Electric customers would experience an
approximately 7.2% increase in electric bills (as adjusted through the ECA) compared to
the current gas contract (or an additional 4.2 percentage point increase compared to
what was budgeted).
In another example, at $4/MMBtu the increase to customers’ electric bills would be closer
to 10.2% (an additional $3.5 million to the Electric Services budget). This rate sensitivity
was first shared with City Council in a Manager’s Alert memo dated August 16, 2022,
and has been the topic of detailed discussion at EUORAB for the past year.
IMPACT TO RESOURCE RECOVERY/HAULERS/BOONE COUNTY LANDFILL:
The 12,000 MMBtu of natural gas per day that is currently procured is sufficient to operate
the Power Plant’s Unit #8. This larger unit can consume approximately 30,000 tons of
RDF per year if RDF is available and the unit is operating continually. Unit #7 consumes
up to 8,000 MMBtu/day which would consume closer to 20,000-24,000 tons/year of RDF.
Unit #8 is relied upon to operate more frequently by the Power Plant because it is able
to dispose of RDF at a faster pace than Unit #7. If Unit #7 is operating because Unit #8
is unavailable, the volume of RDF produced oftentimes outpaces the ability to burn it all,
3
resulting in periods where Resource Recovery is unable to process all of the MSW which
would result in additional material being diverted to the Boone County Landfill (BCL).
Typically, this diversion is handled by instructing the haulers to transport MSW directly to
the Boone County Landfill. It is possible, however to also accommodate this situation by
increasing the reject rate at Resource Recovery.
If haulers are diverted, there are a variety of impacts: First, although haulers save
$5.50/ton on tipping fee costs at the Boone County Landfill compared to Resource
Recovery, they must drive longer distances, resulting in higher labor and fuel costs.
Second, the additional material being sent to the Boone County Landfill places additional
pressure on the landfill operation (both in terms of using available capacity and the
additional staffing the landfill needs to arrange to handle the influx of Story County
garbage trucks). Third, recyclable material is not being removed from the solid waste
through processing before it is landfilled.
Additionally, hauler diversions result in losses of revenue for the Resource Recovery
operation since tipping fees are not being collected and RDF and recyclable materials
are not being sold. Although there is less expense for Resource Recovery since it is not
processing (less electricity and maintenance expenses), the fixed costs remain for the
operation, and therefore the overall impact to the Resource Recovery utility can be
significant.
ALTERNATIVES:
There are several alternative strategies that could be pursued to purchase the
natural gas, each of which has different advantages and disadvantages. Under
Alternatives 1, 2, and 4, the City Council would authorize staff to approve an
amendment to the contract with Macquerie Energy LLC, Houston, TX, to extend
the existing natural gas supply contract for a term of not less than one but not
more than three years for the gas quantities described in each alternative.
If staff is authorized to approve such an amendment, staff would then report back
to the City Council after the contract has been approved. The report would include
staff’s estimates of cost impacts to the Electric customers and Resource Recovery
Utility. The alternatives are:
ALTERNATIVE # 1: Purchase 12,000 MMBtu/day
In this option, enough natural gas would be purchased to combust a theoretical
30,000 tons of RDF in a year, meaning that any diversions of refuse haulers to the
landfill would only be the result of planned or unplanned outages at either the
Power Plant or at Resource Recovery. This option provides the most predictability
to Resource Recovery, along with the haulers and Boone County Landfill, but will
likely result the highest cost alternative to Electric customers. Gas allotments that
are not used for the day can be sold back on the spot market; however, this
alternative results in very little of the utility’s gas allotment being sold back.
4
It is important to note that the adopted FY 2023/24 Electric Fuels budget
contains only enough funding to purchase this quantity of gas if it was at or
below $3.19/MMBtu. Based on current pricing, staff believes it is unlikely
that gas can be secured at this price. If the 12,000 MMBtu/day was
purchased at the anticipated price of approximately $3.65/MMBtu, then the
annual cost would be $15,987,000, which exceeds the Electric Fuels budget
by $2,000,000. This excess cost would be offset by increased revenue from
customers through the ECA; the result of this option is an approximately
7.2% increase in customer electric bills through ECA adjustments compared
to the current natural gas contract.
ALTERNATIVE # 2: Purchase only 8,000 MMBtu/day
In this option, enough gas would be purchased to guarantee the operation of Unit
#7 for the entirety of the year (or at a reduced load level on Unit #8). This would
allow for 20,000-24,000 tons of RDF to be consumed by the Power Plant, at a
minimum. This reduction in RDF throughput by approximately 1/3 would result in
garbage haulers being diverted to the landfill approximately two days per week.
These diversions would have the negative impacts to the haulers, Boone County
Landfill, and the Resource Recovery operation as described earlier in this report.
Alternatively, Resource Recovery could adjust the later steps of the processing to
allow for more rejects to be created from the MSW received. This would allow for
the haulers to continue to unload at Resource Recovery and for the recyclables to
be separated rather than being directly hauled to Boone County Landfill. BCL
would receive a lower volume of waste compared to sending unprocessed waste
directly to BCL.
If the 8,000 MMBtu/day could be secured at the anticipated price of
$3.65/MMBtu, the Electric Fuels budget would have approximately $3.3
million remaining. This funding could be held in reserve and used in one of two
ways:
1) To purchase additional gas on the spot market when the pricing is
favorable (most likely in summer months), increasing the amount of
RDF that could be consumed from time to time. The result would be
consumption of some amount of RDF greater than 20,000-24,000 tons
per year.
2) Alternatively, if the long-term contract pricing for natural gas was to drop
considerably, the $3.3 million could be used to purchase an additional
supply of up to 4,000 MMBtu/day for the year. However, staff does not
have confidence that such a dramatic price drop is likely to occur.
This option results in the least potential for electric bill increases, but results
5
in the greatest amount of material being sent to the landfill, impacting the
haulers, Resource Recovery, and Boone County.
ALTERNATIVE # 3: Purchase gas only on the spot market
(no secure gas contract)
This option would eliminate the use of a secure contract and would require the
daily gas needs to be purchased on the spot gas market. The Electric Utility
would be subject to considerable volatility in gas prices, particularly in the
winter months when demand for gas is the highest. It is not possible to
project the potential cost to customers for this alternative.
Because of the time required to startup and shutdown the Electric boilers and
Resource Recovery operation, it would not likely be feasible to plan for purchasing
electricity on the market when electric grid prices are low and burning RDF only
when electric grid prices are high. Therefore, this option exposes the City to
extreme volatility with little potential benefit. The only real benefit that can be seen
today is that spot gas prices have remained below $2.75/MMBtu since early
February 2023.
ALTERNATIVE # 4: Purchase 8,000 MMBtu/day for November through
March, and 12,000 MMBtu/day for April through October
at a cost not to exceed $4/MMBtu (with slight variations
due to market conditions) and either:
(A) Divert haulers directly to Boone County
Landfill approximately 2 days/week in winter
months, OR
(B) Continue to accept hauled waste during the
winter months but increase the volume of reject
materials
This option allows the seasonal differences in gas prices to be “smoothed out” to
arrive at a consistent price per MMBtu. This option would allow RDF to be burned
at full capacity for April through October, and at reduced capacity for November
through March (see chart below).
6
Impact to Electric Customers:
The adopted amount in the natural gas fuels budget would allow for this gas
to be purchased for calendar year 2024 at a price of $3.68/MMBtu, which is
the lowest price staff has seen recently. Assuming this price is attained,
customers would experience the anticipated Electric bill increase of 3%.
Actual expenditures will not be known until a contract is executed.
Please note from the attached memo, this option is the preferred strategy by
EUORAB (Attachment 1). However, some of the example pricing in the memo is
different than this Council Action Form, illustrating the changes in market pricing
over the course of the last several months (also note that the memo uses the unit
“dekatherms,” which is equivalent to MMBtu).
Impact to Resource Recovery, Haulers, and Boone County Landfill:
Staff believes approximately 27,000-27,500 tons of RDF (2,500-3,000 tons of RDF
less than Alternative #1) could be consumed by this approach. During the time
when capacity is reduced (November through March), Resource Recovery would
have to increase the proportion of MSW being converted into rejects, or haulers
would have to divert directly to the landfill approximately two days each week.
Although this option does not provide the guaranteed ability to burn all of the RDF
generated, it makes the timing of diversions more predictable. The Power Plant
and Resource Recovery could also use this timing predictability to schedule
planned outages at optimal times (Unit 7 in the summer, Unit 8 and/or Resource
Recovery in the winter).
7
With insufficient gas to consume all the RDF generated during January-March and
November-December 2024 under this alternative, there are economic impacts to
the Resource Recovery Utility. Attachment 2 details these potential financial
impacts.
ALTERNATIVE 4A: If haulers are not allowed to tip their MSW approximately two
days per week during the reduced-throughput winter months because of the high
price of gas, the Resource Recovery utility would experience a net negative budget
impact of $98,000 (estimated) in FY 2023/24. This impact takes into consideration
lost tipping fee revenue, lost RDF sales, lost recyclable sales, and decreased
operating expenses. Haulers and the Boone County Landfill would be negatively
impacted as a result of drive times to the landfill and increased material quantities
disposed of there, respectively.
ALTERNATIVE 4B: As an alternative to sending the haulers directly to Boone
County Landfill two days per week, it would be possible for Resource Recovery to
continue to accept and process the MSW, but increase the percentage of material
that is converted into rejects (as opposed to RDF). This accomplishes several
things: 1) It significantly reduces the amount/times haulers would be asked to
directly divert to BCL, 2) Resource Recovery would be able to remove recyclable
metals from the MSW, and 3) BCL would receive ground material, which takes up
less volume in the landfill. However, this approach would increase Resource
Recovery’s hauling and disposal costs. This results in an estimated loss of up to
$125,000 in revenue for Resource Recovery for the remainder of FY 2023/24
($246,913 annually).
CITY MANAGER'S RECOMMENDED ACTION:
Over the past several years, the City has benefited from extremely advantageous
guaranteed natural gas prices through the expiring long-term contract. The natural gas
futures pricing is considerably higher than the expiring terms. Staff is concerned that the
window for prices to drop is closing, and prices will again begin rising as cold weather
and market uncertainty approach.
There does not appear to be a risk-free option available to the City Council. The strategy
with the least impact to electric customers also has the highest impact to Resource
Recovery System, and vice versa.
Staff believes the best strategy is Alternative #4B, which calls for a blended cost not
to exceed $4/MMBtu, and secures enough natural gas on contract to burn 90% of the
RDF that could be consumed in a typical year. This would include approval to
increase the natural gas fuels budget from $13,980,000 to $14,900,000. At
$14,900,000 this represents a 5.0% increase which would be passed on to Electric
customers through the Energy Cost Adjustment. This increase is 2 percentage
points more than was anticipated with the adopted FY 2023/24 fuels budget.
8
Alternative #4B calls for continued acceptance and processing of MSW during the
winter months at the Resource Recovery Plant rather than sending haulers directly
to Boone County Landfill for part of the time. The portion of material being
converted to rejects (as opposed to RDF) would be increased.
If Alternative #4B is supported by the City Council, it becomes increasingly
important to reduce the volume of waste being received at the Resource Recovery
Plant immediately and subsequently allow Resource Recovery to divert haulers as little
as possible by increasing rejects when necessary. Staff would time future planned
outages at the Power Plant and Resource Recovery Plant to occur in the winter months
when there is less available natural gas.
Additionally, staff would immediately pursue options for reducing the volume of
waste received through recycling and other waste diversion programs. These
options could potentially include adding sites for residents to drop off recyclable materials
such as cardboard or plastics, implementing curbside recyclable collection (either
through a Citywide contract or by requiring haulers to offer those services), and
It should be emphasized that due to lost RDF sales and increased hauling and disposal
fees, the cost to the Resource Recovery System under Alternative #4B, with increased
rejects sent to the landfill is estimated to be up to $125,000 for the remainder of FY
2023/24, or $246,913 for the calendar year (See Attachment 2). The actual shortfall
amount due specifically to the reduction in natural gas purchased will be determined at
the end of the FY 2023/24 and reported back to EUORAB and City Council. This
projected shortfall could be addressed by one of the following:
1) Increasing the Resource Recovery tipping fee by 8.4% or $5.22/ton (from
$62.50/ton to $67.72/ton on January 1, 2024).
2) Transferring the actual calculated shortfall due to the reduction in natural gas
purchased from the Electric Utility to Resource Recovery for FY 2023/24.
3) A combination of these approaches.
Given the fact that the other governmental partners in the Resource Recovery
System, as well as haulers have been notified that the tipping fee will remain
unchanged for FY 2023/24, staff would recommend that the actual shortfall
generated by Alternative #4B be reimbursed by a transfer from the Electric Utility.
This transfer will further increase the cost to Electric customers through the Energy Cost
Adjustment but would be substantially less than the increased cost Electric customers
would experience if Electric had to purchase 12,000 MMBtu/day year-round. Staff will
consider different financial adjustments to recommend during the preparation of the FY
2024/25 Budget.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 4B, thereby authorizing the Electric Director to approve an
amendment to the contract with Macquerie Energy LLC, Houston, TX, to extend
9
the existing natural gas supply contract for a term of not less than one but not
more than three years at a price of not more than $4/MMBtu and a total cost of not
more than $14,900,000, and further authorizing a transfer of funds from the Electric
Fund to the Resource Recovery Fund, once determined by Electric, to offset the
shortfall in net revenues due to the reduction in natural gas purchased for the
remainder of FY 2023/24.
ATTACHMENT 1
Date: May 22, 2023
To: Donald Kom
Director, Electric Services
From: EUORAB
Re: Recommenda ons for Natural Gas Procurement
In the past couple of EUORAB mee ngs, one of the discussion points was the procurement of natural
gas. Electric Services needs 12,000 dekatherms (Dth) per day of natural gas to operate Unit 8 at a load
sufficient to burn 30,000 tons per year of refuse derived fuel (RDF) which is the typical annual
produc on of RDF from the Resource Recovery Plant. Electric Services needs 8,000 Dth per day of
natural gas to operate Unit 7, but this only allows 20,000 tons per year of RDF to be burned.
Electric Services currently holds a long-term natural gas contract for 12,000 dekatherms (Dth) per day at
a price $2.75 per Dth. This a very good price, but unfortunately, this gas contract expires on December
31, 2023. Electric Services needs to procure addi onal natural gas contracts to support the opera on of
the power plant and to consume the RDF produced by the Resource Recovery Plant for 2024 and
beyond. Electric Services has had preliminary conversa ons with its gas consultant and can expect
natural gas prices to increase in any future contracts. Electric Services staff presented the following
three near-term op ons to EUORAB for their considera on:
Op on 1 – Lock in 12,000 Dth/day of natural gas for one year at a predicted price of $4.00 per Dth.
Would result in a 9.2% increase in electrical rates through an Energy Rate Adjustment of +$0.007
If gas could be obtained at $3.50 per Dth, the rate increase would be 5.5%
If gas came in at $5.00 per Dth, the rate increase would be 16.5%
Would allow the power plant to burn 30,000 tons of RDF.
Op on 2 – Lock in 8,000 Dth/day of natural gas for one year at a predicted price of $4.00 per Dth, with
addi onal natural gas purchased on the spot market.
The electrical rates would not change
Would allow the power plant to burn 20,000 tons of RDF, primarily by running Unit 7.
Unit 8 would run to burn addi onal RDF, only when the spot gas price is less than or equal to
$4.00 per Dth.
Would result in a strong incen ve to reduce garbage intake.
Op on 3 – Lock in 8,000 Dth/day of natural gas for one year at a predicted price of $4.00 per Dth, with
an addi onal 4,000 Dth/day of natural gas purchased on a monthly basis.
Electrical rates would not change unless the monthly strip price exceeds $4.00 per Dth.
Would allow the power plant to burn 20,000 tons of RDF, but would allow consump on of
addi onal RDF on a more predictable basis.
Would likely s ll result in a strong incen ve to reduce garbage intake.
EUORAB Comments:
ATTACHMENT 1
Natural gas prices are seasonal in nature. Natural gas prices are highest in the winter (hea ng) months,
which are the months of November through March. Natural gas prices are lower in the summer (non-
hea ng) months, which are April through October. It appears from the informa on above, that
con nuing to lock in 12,000 Dth of natural gas to burn all the RDF generated by the Resource Recovery
Plant will have a nega ve impact on Electric Services customers. Therefore, Op on 1 should not be
considered. Op ons 2 & 3 are similar and would likely have minimal impact on Electric Services
customers, but would reduce the amount of RDF burned by the power plant and increase the amount
going to the landfill.
EUORAB Recommenda ons:
A er considera on, EUORAB is recommending a combina on of the op ons noted above. Electric
Services should lock in 8,000 Dth of natural gas for the en re year. That amount of natural gas would
allow the consump on of 20,000 tons of RDF for the year.
For the summer months of April through October, Electric Services should lock in an addi onal 4,000
Dth/day of natural gas. By purchasing a summer strip, it is likely natural gas can be purchased for less
than $4.00 per Dth. This approach would allow the power plant to burn 100% of the RDF for the
summer months for a total of approximately 26,000 tons of RDF for the year.
Electric Services should work with their gas consultant on the best approach to locking in this gas.
Some mes it can be advantageous to purchase natural gas with combina ons of summer/winter strips
versus an annual contract. Natural gas purchases can also be layered to take advantage of different
pricing. The gas consultant should be able to provide advice on the best path forward.
Alternative 1 & Alternative 2 - 30,000 Tons of RDF
MSW Tons
Hauled Directly
to BCL / Tons TF Revenue
Metal Tons
Recovered
Metal
Revenue
Process
Tons RDF Tons RDF Payment
Front End
Rejects
Tons
Process
Rejects
Tons
Front End &
Process Rejects
Cost
RRP
Operating
Exp Running Total
Net Impact of
Fund Balance
from Base Case
Average Number
of Days/Week
Haulers go to BCL
Number of Trips to
BCL to Dispose of
Loads Taken
Directly
Miles Driven to
BCL to Dispose of
Loads Taken
Directly
Increase to Tip
Fee to Offset
Reduction of
RDF Burned
52,000 4,711 2,955,563$ 1,615 181,247$ 46,154 30,000 909,304.29$ 1,135 14,539 1,147,768$ 2,898,345.87$ 0.00 0.45 457 21,019 0
Alternative 4 - 27,000 Ton RDF - Direct Hauler Diverision
MSW Tons
Hauled Directly
to BCL / Tons TF Revenue
Metal Tons
Recovered
Metal
Revenue
Process
Tons RDF Tons RDF Payment
Front End
Rejects
Tons
Process
Rejects
Tons
Front End &
Process Rejects
Cost
RRP
Operating
Exp Running Total
Net Impact of
Fund Balance
from Base Case
Average Number
of Days/Week
Haulers go to BCL
Number of Trips to
BCL to Dispose of
Loads Taken
Directly
Miles Driven to
BCL to Dispose of
Loads Taken
Directly
Increase to Tip
Fee to Offset
Reduction of
RDF Burned
52,000 9,440 2,660,000$ 1,454 163,122$ 41,539 27,000 818,371.94$ 1,021 13,085 1,032,989$ ($93,310)2,701,815.16$ ($196,531)0.91 916 42,118 4.62$
Alternative 4 - 30,000 Ton RDF - 2,500 Tons of RDF during the Winter Months With Higher Amount of Rejects
Time of
Year MSW Tons
Hauled Directly
to BCL / Tons TF Revenue
Metal Tons
Recovered
Metal
Revenue
Process
Tons RDF Tons RDF Payment
Front End
Rejects
Tons
Process
Rejects
Tons
Front End &
Process Rejects
Cost
RRP
Operating
Exp Running Total
Net Impact of
Fund Balance
from Base Case
Average Number
of Days/Week
Haulers go to BCL
Number of Trips to
BCL to Dispose of
Loads Taken
Directly
Miles Driven to
BCL to Dispose of
Loads Taken
Directly
Increase to Tip
Fee to Offset
Reduction of
Revenues
Summer 31,000 2,950 1,753,125$ 958 107,509$ 27,377 17,795 539,364.03$ 673 8,624 680,811$ $0 $1,719,186 0.28 286 13,162 -$
Winter 21,000 1,761 1,202,438$ 657 73,738$ 18,777 9,821 297,659.63$ 462 8,300 641,589$ $0 $932,246 0.17 171 7,857 -$
Total 52,000 4,711 2,955,563$ 181,247$ 46,154 27,615 837,023.66$ 1,135 16,923 1,322,400$ -$ 2,651,433$ ($246,913)0.45 457 21,019 5.22$
Gross MSW available
tons 52,000
Tip Fee RRP 62.50$
Bulky Items %2.40%
Fe Metal Recovery %3.38%3.50%Blended Metal Recovery
Fe Metal $/Ton 80.00$ 112.20$ Blended Metal Price/Ton
NF Metal Recovery %0.12%
NF Metal $/Ton 1,000.00$
Summer
RDF % of Process
Tons 65.00%
Winter
RDF % of Process
Tons 52.30%
Tip Fee BCL/Ton 57.00$ 73.23$ Blended Reject Cost/Ton
Hauling to BCL/Ton 16.23$
RDF $/Ton 30.31$
Average Load to BCL 10.31
Trip Miles BCL 46
Assumptions
Amendment to Electric Services Natural Gas Supply Contract Impacts Haulers and RRP
1
ITEM #: 11
DATE: 07-27-23
DEPT: P&H
COUNCIL ACTION FORM
SUBJECT: TEXT AMENDMENT TO THE ALLOWABLE USES IN GENERAL
INDUSTRIAL (GI) ZONING DISTRICT TO PERMIT INDOOR SPORTS
PRACTICE FACILITIES
BACKGROUND:
At the meeting on June 27, 2023, Council reviewed a request from Savage Gymnastics
Academy about options for sites that they could re -establish a gymnastics facility (see
Attachment A). The Academy was recently asked to leave the building it had been using
on the Iowa State University campus. The Academy searched for a new location and
found a vacant building for lease meeting their size needs in the General Industrial “GI”
Zoning District at 1914 E. Lincoln Way. GI zoning, however, does not allow for eithe r
“Entertainment, Restaurant and Recreation – General”, a category which includes “Health
clubs and gyms” (in addition to other sports uses), or “Sports Practice Facilities” which is
narrowly defined type of sport facility that is not for general recreation (see below).
Staff determined that a gymnastics academy could be considered either a recreation use
or a “Sports Practice Facility”. These use categories are allowed within various
commercial zoning districts but not GI (Attachment B). The applicant is requesting to be
allowed to operate a gymnastics facility in GI zoning.
Sports Practice Facilities are defined as the following in Table 29.501(4)-7:
An indoor facility dedicated solely to the training and development of sports teams.
Uses shall not include the playing of scheduled games, matches, championships,
or tournaments. The facility may have limited observation seating for family and
associates of the players who wish to watch the practice, but it is not open to the
public; nor is the facility used for other assembly-type uses when not otherwise
used for sports practice. The facility may also include ancillary offices.
Gymnastics does have unique requirements for a space, primarily the height of the
ceiling. The Academy also needs an open floorplan of sufficient size. In looking around
Ames, the Academy found few available buildings that meet their physical requirements.
The applicant has stated that no appropriate commercial or retail spaces were available.
The Academy’s desired location on E. L incoln Way most recently housed McDonald
Supply, a distributor of plumbing and HVAC supplies (McDonald moved to a new, larger
location in Ames). The size of the structure, 5,400 square feet, meets the needs of the
gymnastics academy.
Any text amendment will apply to all of the General Industrial zoning district area in the
City; it is not specific to one site.
2
Proposed Ordinance:
City Council considered three options as part of its initial discussion on June 27th. Two
options were for amendments to the General Industrial zoning standards, while the third
option was to consider rezoning the site to Highway Oriented Commercial. City Council
directed the applicant to pursue Option 2 for a text amendment to allow for the use
upon approval of a Special Use Permit within General Industrial Zoning Districts.
Savage Gymnastics filed the text amendment application as directed by City Council .
Approval of the proposed text amendment would amend the Zoning Ordinance to allow
for Sports Practice Facilities within GI through the Special Use Permit (SUP) process.
SUPs are reviewed by the Zoning Board of Adjustment. Requiring an SUP process would
add a level of scrutiny concerning compatibility of uses and could help to prevent too
many industrial properties from being converted to non-industrial uses in the future.
The use would still need to meet all development requirements such as minimum parking
and requirements of the Building Code. (The minimum parking for a Spo rts Practice
Facility is 2 spaces per 1,000 square feet of gross floor area.)
The SUP criteria are shown in Attachment D.
PLANNING AND ZONING COMMISSION RECOMMENDATION:
The Planning and Zoning Commission met on July 19, 2023, to consider the proposed
text amendment. The Commissioners discussed how a Special Use Permit would apply
to a Sports Practice Facility and the process of review by the Zoning Board of Adjustment.
The Commission also reviewed what qualifies as a Sports Practice Facility.
The Commission voted 6-0-0 to recommend that the City Council amend the General
Industrial (GI) Zoning District allowable uses in Table 29.901(2) to permit Sports Practice
Facilities (Indoor) via a Special Use Permit.
ALTERNATIVES:
1. Approve on first reading a text amendment to the General Industrial (GI) Zoning
District allowable uses in Table 29.901(2) to permit Sports Practice Facilities
(Indoor) via a Special Use Permit.
2. Direct staff to initiate a rezoning process for the property to highway commercial
rather than approve a zoning text amendment.
3. Do not approve the proposed text amendment.
CITY MANAGER’S RECOMMENDED ACTION:
The City has an interest in maintaining industrial land for a variety of employment and
processing activities that meet a diverse set of economic development needs for the City.
By opening up industrial property to other uses, there is the potential to erode the land
3
set aside for this important economic function. The City does not allow
entertainment/recreation uses in this zone, but does allow for limited amounts of retail
and personal service uses, including requirements for larger facilities with a Special Use
Permit, and other uses such as daycare that are not traditional uses within industrial
areas. The purpose of General Industrial zoning is described below.
Sec. 29.901. states the following about the purpose of the General Industrial Zone:
(1) Purpose. This Zone is intended to provide a limited development review
procedure, involving only developer- and staff-coordinated efforts to satisfy the
planning and permitting requirements. This District applies to those areas where
there is a need to provide a desirable industrial environment and to promote
economic viability of a type generally not appropriate for or compatible with retail
sales areas. A site plan review process is required in order to assure such
development and intensity of use in a way that assures sa fe, functional, efficient
and environmentally sound operations.
Due to the unique requirements for a gymnastics academy, industrial buildings are well -
suited to host their use due to large open areas within their floor plans and high ceiling
height. It is unlikely that any significant changes will be made to an industrial building by
a gymnastics academy that would prevent a return to an industrial function. While special
equipment will need to be installed (uneven bars, balance beams, etc.), these do not
require physical alterations to the structure. Staff believes it is not uncommon for older
industrial buildings to be used for sports facilities because of building configurations.
Review of the individual plans for a site would occur with a Special Use Pe rmit.
Staff is aware of other types of sports facilities in the area. Larger, new commercial
facilities have also been built to suit specific sports needs, such as All Iowa Attack in
Ames. Another example is Kingdom Hoops, which has a facility within an industrial
building in north Des Moines and a new facility within a commercial zone in Grimes. These
facilities are much larger in scope that what is desired by Savage.
The GI zoning district is the most common industrial district within the City. The properties
zoned GI in some parts of the City tend to have older, smaller buildings that would suit
the needs of a gymnastics academy due to the open floor space and ceiling heights.
These types of buildings are uncommon within the City’s commercial zones. Wh ile an
industrial zone is not an ideal location for a sports use in many instances, the applicant’s
goals could be accomplished with minimal impact to the City’s industrial base through
review of a Special Use Permit.
Unique to this request, staff believes the preferred site works well for the intended use
based upon the Ames Plan 2040 General Commercial designation and businesses that
exist in this area but has concerns about broader implications of changes to GI zoning.
Therefore, having an SUP process will allow for a greater degree of scrutiny for
compatibility with industrial neighbors. The SUP review by the Zoning Board of
Adjustment will also add a level of review that can prevent economically important
industrial land from being given to other uses. Therefore, it is the recommendation of the
City Manager that the City Council approve Alternative No. 1.
4
Attachment A
Initial Request to Council
5
6
7
8
9
10
Attachment B
Current Zoning Code Requirements for “GI” General Industrial Zoning
USE CATEGORY STATUS APPROVAL
REQUIRED
APPROVAL
AUTHORITY
RESIDENTIAL USES N -- --
OFFICE USES Y SDP Minor Staff
TRADE USES
Retail Sales and Services - General
Uses Greater than one 3,000 sf use
per site require a Special Use Permit
from the ZBA.
Y SDP Minor/SP Staff/ZBA
Automotive and Marine Craft
Uses greater than one 10,000 sf use
per site require a Special Use Permit
from the ZBA.
Y SDP Minor/SP Staff/ZBA
Entertainment, Restaurant and
Recreation – General
N -- --
Banquet halls, and Exhibition and
meeting areas
Y when in
combination
with
manufacturing
and processing
industrial uses
on the same lot
or parcel
SDP Minor Staff
Wholesale Trade Y SDP Minor Staff
INDUSTRIAL USES
Manufacturing/Processing
*Except Major Industrial Groups 28
& 29
Y* SDP Minor Staff
Resource Production/Extraction Y SDP Minor Staff
Warehousing/Freight Storage Y SDP Minor Staff
Industrial Service (except Salvage
Yards)
Y SDP Minor Staff
Salvage Yards
See Sections 29.1306 and 29.1503
Y SP ZBA
Waste-Processing and Transfer Y SP ZBA
INSTITUTIONAL USES
Child Day Care Facilities and
Vocational/Technical High Schools
Y SDP Minor Staff
Colleges and Universities Y SP ZBA
TRANSPORTATION,
COMMUNICATIONS, AND
ESSENTIAL SERVICES
*Except Passenger Terminals
Y* SDP Minor Staff
11
USE CATEGORY STATUS APPROVAL
REQUIRED
APPROVAL
AUTHORITY
Personal Wireless Communication
Facilities
Y SP ZBA
MISCELLANEOUS USES
Adult Entertainment Facilities N -- --
Commercial Outdoor Recreation N -- --
Detention Facilities Y SP ZBA
Major Event Entertainment N -- --
Vehicle Servicing Facilities Y SDP Minor Staff
Y = Yes: permitted as indicated by required approval.
N = No: prohibited
SP = Special Use Permit required: See Section 29.1503
SDP Minor = Site Development Plan Minor: See Section 29.1502(3)
SDP Major = Site Development Plan Major: See Section 29.1502(4)
ZBA = Zoning Board of Adjustment
12
Attachment C
Proposed Zoning Code Requirements for “GI” General Industrial Zoning
USE CATEGORY STATUS APPROVAL
REQUIRED
APPROVAL
AUTHORITY
RESIDENTIAL USES N -- --
OFFICE USES Y SDP Minor Staff
TRADE USES
Retail Sales and Services - General
Uses Greater than one 3,000 sf use
per site require a Special Use Permit
from the ZBA.
Y SDP Minor/SP Staff/ZBA
Automotive and Marine Craft
Uses greater than one 10,000 sf use
per site require a Special Use Permit
from the ZBA.
Y SDP Minor/SP Staff/ZBA
Entertainment, Restaurant and
Recreation – General
N -- --
Banquet halls, and Exhibition and
meeting areas
Y when in
combination
with
manufacturing
and processing
industrial uses
on the same lot
or parcel
SDP Minor Staff
Wholesale Trade Y SDP Minor Staff
INDUSTRIAL USES
Manufacturing/Processing
*Except Major Industrial Groups 28
& 29
Y* SDP Minor Staff
Resource Production/Extraction Y SDP Minor Staff
Warehousing/Freight Storage Y SDP Minor Staff
Industrial Service (except Salvage
Yards)
Y SDP Minor Staff
Salvage Yards
See Sections 29.1306 and 29.1503
Y SP ZBA
Waste-Processing and Transfer Y SP ZBA
INSTITUTIONAL USES
Child Day Care Facilities and
Vocational/Technical High Schools
Y SDP Minor Staff
Colleges and Universities Y SP ZBA
TRANSPORTATION,
COMMUNICATIONS, AND
ESSENTIAL SERVICES
*Except Passenger Terminals
Y* SDP Minor Staff
13
USE CATEGORY STATUS APPROVAL
REQUIRED
APPROVAL
AUTHORITY
Personal Wireless Communication
Facilities
Y SP ZBA
MISCELLANEOUS USES
Adult Entertainment Facilities N -- --
Commercial Outdoor Recreation N -- --
Detention Facilities Y SP ZBA
Major Event Entertainment N -- --
Vehicle Servicing Facilities Y SDP Minor Staff
Sports Practice Facilities (Indoor
Only)
Y SP ZBA
Y = Yes: permitted as indicated by required approval.
N = No: prohibited
SP = Special Use Permit required: See Section 29.1503
SDP Minor = Site Development Plan Minor: See Section 29.1502(3)
SDP Major = Site Development Plan Major: See Section 29.1502(4)
ZBA = Zoning Board of Adjustment
14
Attachment D
Special Use Permit Requirements and Criteria
Sec. 29.1503. SPECIAL USE PERMIT.
(1) Purpose. This Section is intended to provide a set of procedures and standards for specified uses
of land or structures that will allow practical latitude for the investor or developer, but that will, at
the same time, maintain sound provisions for the protection of the health, safety, convenience, and
general welfare. This Section permits detailed review of certain types of land use activities that,
because of their particular and unique characteristics, require special consideration in relation to
the welfare of adjacent properties and to the community as a whole. Land and structural uses
possessing these characteristics may be authorized within designated Zones by the issuance of a
Special Use Permit. This Section also provides for the use of Single Family Dwellings, Two Family
Dwellings, and Single Family Attached Dwellings by a Functional Family.
(2) Submittal Requirements. In accordance with Section 29.1503, Applicants must submit an
Application for a Special Use Permit to the Planning and Housing Department for co nsideration
by the Zoning Board of Adjustment. The Application for a Special Use Permit shall be
accompanied by:
(a) A statement of supporting evidence that the general and specific standards as delineated in
this Article will be fulfilled;
(b) A Site Plan meeting all the submittal requirements stated in Section 29.1502(2), unless no
site improvements are required; and
(c) Preliminary plans and specifications for all construction, as applicable.
(3) If a proposed Special Use is within an existing building and improved site, plans for use of the site
and building must be submitted in lieu of the Site Plan requirements.
(4) Procedure for Special Use Permits.
(a) Zoning Board of Adjustment. The Zoning Board of Adjustment shall consider the
application at a public hearing conducted as part of a regularly scheduled meeting.
Notification of the public hearing shall be made by mail, posting, and publication, in
accordance with Sections 29.1500(2)(d)(i), (ii) and (iii) above. The Zoning Board of
Adjustment must approve, deny, or modify the Special Use Permit application within 60
days of the public hearing.
(5) Review Criteria. Before a Special Use Permit application can be approved, the Zoning Board of
Adjustment shall establish that the following general standards, as well as the specific standards
outlined in subsections (b), (c), and (d) below, where applicable, have been or shall be satisfied.
The Board's action shall be based on stated findings of fact. The conditions imposed shall be
construed as limitations on the power of the Board to ac t. A mere finding that a use conforms to
those conditions or a recitation of those conditions, unaccompanied by specific findings of fact,
shall not be considered findings of fact for the purpose of complying with this Ordinance.
(a) General Standards. The Zoning Board of Adjustment shall review each application for the
purpose of determining that each proposed use meets the following standards, and in
addition, shall find adequate evidence that each use in its proposed location will:
(i) Be harmonious with and in accordance with the general principles and proposals
of the Land Use Policy Plan of the City;
(ii) Be designed, constructed, operated, and maintained so as to be harmonious in
appearance with the existing or intended character of the general vicinity and that
such a use will not change the essential character of the area in which it is proposed;
(iii) Not be hazardous or disturbing to existing or future uses in the same general
vicinity;
(iv) Be served adequately by essential public facilities and services such as highways,
streets, police, fire protection, drainage structure, refuse disposal, water, and
sewage facilities, and/or schools;
15
(v) Not create excessive additional requirements at public cost for public facilities and
services;
(vi) Not involve uses, activities, processes, materials, equipment, or conditions of
operation that will be detrimental to any person, property, or general welfare by
reason of excessive production of traffic, noise, smoke, fumes, glare, or odors; and
(vii) Be consistent with the intent and purpose of the Zone in which it is proposed to
locate such use.
(b) Residential Zone Standards. The Zoning Board of Adjustment shall review each
application for the purpose of determining that each proposed use in a residential zone
meets the following standards, as well as those set forth in Section 29.1503(4)(a) above
and, in addition, shall find adequate evidence that each use in its proposed location will:
(i) Not create excessively higher levels of traffic than the predominant pattern in the
area and not create additional traffic from the proposed use that would change the
street classification and such traffic shall not lower the level of service at area
intersections;
(ii) Not create a noticeably different travel pattern than the predominant pattern in the
area. Special attention must be shown to deliveries or service trips in a residential
zone that are different than the normal to and from work travel pattern in the
residential area;
(iii) Not generate truck trips by trucks over 26,000 pounds g.v.w (gross vehicular
weight) to and from site except for food delivery vehicles, waste collection
vehicles and moving vans;
(iv) Not have noticeably different and disruptive hours of operation;
(v) Be sufficiently desirable for the entire community that the loss of residential land
is justifiable in relation to the benefit;
(vi) Be compatible in terms of structure placement, height, orientation, or scale with
the predominate building pattern in the area;
(vii) Be located on the lot with a greater setback or with landscape buffering to minimize
the impact of the use on adjacent property; and
(viii) Be consistent with all other applicable standards in the zone.
(c) Commercial Standards. The Zoning Board of Adjustment shall review each application for
the purpose of determining that each proposed use located in a commercial zone meets the
following standards as well as those set forth in Section 29.1503(4)(a) above and, in
addition, shall find adequate evidence that each use in its proposed location will:
(i) Be compatible with the potential commercial development and use of property
planned to occur in area;
(ii) Represent the sufficiently desirable need for the entire community that the loss of
commercial land is justifiable in relation to the benefit; and
(iii) Be consistent with all other applicable standards in the zone.
(d) Special Use Permits for Functional Families.
(i) Purpose. This Section is to provide for the regulation of Functional Families that
may request to reside in a Single Family Dwelling, Two Family Dwelling or Single
Family Attached Dwelling. The regulations are also intended to prohibit larger
groups of unrelated persons from residing in Single Family Dwellings, Two
Family Dwellings, or Single Family Attached Dwellings. Larger groups of
unrelated persons have frequently shown to have a detrimental affect on Single
Family neighborhoods since larger groups of unrelated persons do not live as a
family unit and do not have significant economic or emotional ties to a
neighborhood.
(ii) Standards of Functional Families. The Zoning Board of Adjustment shall review
each application for a Special Use Permit for a functional family as provided for
16
in this section after having determined that the application meets the following
standards:
a. The functional family shares a strong bond or commitment to a single
purpose (e.g., religious orders);
b. Members of the functional family are not legally dependent on others not
part of the functional family;
c. Can establish legal domicile as defined by Iowa law;
d. Share a single household budget;
e. Prepare food and eat together regularly;
f. Share in the work to maintain the premises; and
g. Legally share in the ownership or possession of the premises.”
(e) Conditions. The Board may impose such additional conditions as it deems necessary for
the general welfare, for the protection of individual property rights, and for ensuring that
the intent and objectives of this Ordinance will be observed.
(6) Lapse of Approval. All Special Use Permits shall lapse 12 months after the date of issuance unless
the use is undertaken, or a building permit has been issued and actual construction started. Where
unusual circumstances may prevent compliance with this time requirement, the Zoning Board of
Adjustment may, upon written request by the affected permittee, extend the time for required start
of construction an additional 60 days. Excavation shall not be considered construction for the
purpose of enforcing this Section.
(7) Successive Applications. In the event that the Board denies an application for a Special Use
Permit, a similar application shall not be refiled for 12 months from the advertised public hearing
date. The Board, on petition by the applicant, may permit a refiling of this application after 6
months from the original hearing date when it determines that significant physical, economic or
land use changes have taken place within the immediate vicinity, or a significant zoning ordinance
text change has been adopted, or when the reapplication is for a different use than the original
request. The applicant shall submit a detailed statement setting out those changes that he or she
deems significant or upon which he or she relies for refiling the original application.
(8) Site Plans approved as part of a Special Use Permit. All site plans approved as part of an
approved Special Use permit may only be amended pursuant to the same procedures for approving
Minor Changes to a Major Site Development Plan as provided in Section 29.1502(6).
ORDINANCE NO. __________
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF
THE CITY OF AMES, IOWA, BY AMENDING SECTION
29.901(2) THEREOF, FOR THE PURPOSE OF INCLUDING
SPORTS PRACTICE FACILITIES AS AN ALLOWABLE USE
IN GENERAL INDUSTRIAL (GI) ZONE USES 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 29.901(2) as follows:
“(2) Permitted Uses. The uses permitted in the GI Zone are set forth in Table 29.901(2)
below:
Table 29.901(2)
General Industrial (GI) Zone Uses
Y = Yes: permitted as indicated by required approval.
N = No: prohibited
SP = Special Use Permit required: See Section 29.1503
SDP Minor = Site Development Plan Minor: See Section 29.1502(3)
SDP Major =Site Development Plan Major: See Section9.1502(4)
ZBA = Zoning Board of Adjustment
Section Two. All ordinances, or parts of ordinances, in conflict herewith are hereby repealed to theextent 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
USE
CATEGORY
STATUS APPROVAL
REQUIRED
APPROVAL
AUTHORITY
…
MISCELLANEOUS USES
…
Sports Practice Facilities (Indoor Only)Y SP ZBA