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Home My WebLink About~Master - April 19, 2022, Special Meeting of the Ames City CouncilAMENDED* AGENDA SPECIAL MEETING OF THE AMES CITY COUNCIL CITY COUNCIL CHAMBERS - CITY HALL 515 CLARK AVENUE APRIL 19, 2022 CALL TO ORDER: 6:00 p.m. CITY COUNCIL WORKSHOP: 1. Watersheds Update 2. Water and Sewer Rate Overview* a. First passage of ordinance adjusting sewer rates by 5%, effective July 1, 2022 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. April 19, 2022 Ames City Council Workshop: Watersheds Update 1 Watersheds Update It Takes Collaboration and Teamwork! April 19, 2022 City Council Workshop Watersheds Update City of Ames Public Works Department: John Joiner, Director Tracy Peterson, Municipal Engineer Cesar Cintron, Civil Engineer II Liz Calhoun, Stormwater Resource Analyst Jake Moore, Stormwater Specialist City of Ames W&PC Department: John Dunn, Director Neil Weiss, Asst Director Maryann Ryan, Laboratory Supervisor Ashley Geesman, Enviro. Engineer Dustin Albrecht, Enviro. SpecialistPrairie Rivers of Iowa: Penny Brown Huber, Executive Director Jessica Butters, Pollinator Conservation Specialist Dan Haug, Water Quality Specialist 1 2 April 19, 2022 Ames City Council Workshop: Watersheds Update 2 Watersheds Update Onion Creek: 880 feet Clear Creek: 6,565 feet College Creek: 6,880 feet Worle Creek: 5,450 feet Ioway Creek: 9,387 feet South Skunk River: 7,730 feet Total =36,892 feet or 6.99 miles Streams in Ames UPDATE TO COUNCIL: WATER QUALITY MONITORING IN STORY COUNTY Dan Haug, Water Quality Specialist2022-04-19 3 4 April 19, 2022 Ames City Council Workshop: Watersheds Update 3 On this day in Ioway Creek, E. coli bacteria was 10x the primary contact recreation standard. Accomplishments, 2021 5 6 April 19, 2022 Ames City Council Workshop: Watersheds Update 4 Partners Kits Lab Training Database Events Data analysis $$ $$ $ $$$ Lab testing 7 8 April 19, 2022 Ames City Council Workshop: Watersheds Update 5 Volunteer testing in the field 9 10 April 19, 2022 Ames City Council Workshop: Watersheds Update 6 Volunteer “Snapshots” AMES STRATFORD Ioway 11 12 April 19, 2022 Ames City Council Workshop: Watersheds Update 7 Interpreting and communicating the data Findings, 2021 13 14 April 19, 2022 Ames City Council Workshop: Watersheds Update 8 Key findings from 2021 monitoring Low nitrate almost everywhere NORMAL FLOW LOW FLOW CREP Wetland 15 16 April 19, 2022 Ames City Council Workshop: Watersheds Update 9 High phosphorus High phosphorus: volunteer results Nevada STP Nevada STP Colo STP + Mobile Home Park Huxley STP Mobile Home Park ?? Ames WPCF 17 18 April 19, 2022 Ames City Council Workshop: Watersheds Update 10 Outfall from Ames WPCF High phosphorus: lab testing 19 20 April 19, 2022 Ames City Council Workshop: Watersheds Update 11 Low flows not important for Gulf Is effluent affecting creek critters? 21 22 April 19, 2022 Ames City Council Workshop: Watersheds Update 12 Is effluent affecting creek critters? Below Nevada STP Below Ames STP Key findings from 2021 monitoring 23 24 April 19, 2022 Ames City Council Workshop: Watersheds Update 13 Bacteria results, 2021 South Skunk River Ioway Creek Lakes are safer for swimming than rivers Bacteria results, 2021 25 26 April 19, 2022 Ames City Council Workshop: Watersheds Update 14 Narrowing down bacteria sources Narrowing down bacteria sources 27 28 April 19, 2022 Ames City Council Workshop: Watersheds Update 15 Narrowing down bacteria sources Too High (for most people) Suitable Too Low OK Key findings from 2021 monitoring Rivers too low to see influence of streambank erosion and stabilization 29 30 April 19, 2022 Ames City Council Workshop: Watersheds Update 16 Ioway Creek @ 6th St TSS (mg/L) E. coli (CFU/100 mL) Total Phosphorus (mg/L) June 16, baseflow 7 904 0.14 July 9, storm event 1,316 25,200 1.42 July 21, baseflow 7 441 0.17 Many pollutants worse after rain… Nitrate‐ N (mg/L) 5.50 0.60 1.00 …from areas not treated by ponds TSS 1 mg/L E. Coli 20 CFU/100mL Phosphorus 0.02 mg/L TSS 1006 mg/L E. Coli 53,200 CFU/100m Phosphorus 0.79 mg/L 31 32 April 19, 2022 Ames City Council Workshop: Watersheds Update 17 Connection between storm sewers and creeks W&PC WATERSHED UPDATE 33 34 April 19, 2022 Ames City Council Workshop: Watersheds Update 18 Watershed-based Nutrient Reduction $200K/Year Investment “Outside the Fence” Iowa Nutrient Reduction Exchange DNR Memorandum of Understanding Dotson Wetland Project •Ducks Unlimited, Story County, IDALS •20.4‐acre wetland treating over 2,200 acres •22,000 lbs/year nitrogen removal •Design/permitting through 2022 and construction 2023 35 36 April 19, 2022 Ames City Council Workshop: Watersheds Update 19 Story County Edge‐ of‐Field Project •Story County, Polk County, JEO Consulting Group, Heartland Co‐op, Natural Resource Conservation Service, IDALS, and Iowa State University. •Central Fiscal Agent Funding Model •25+ Bioreactor/Saturated Buffer Sites •Construction Summer/Fall 2022 •Landowner outreach already starting for 2nd round Soil and Water Outcomes Fund Partnership with Iowa Soybean Association Cover Crops placed on 4000+ acres in Story County Nutrient Reductions (2020,2021) 120,000 lbs Nitrogen 7,000 lbs Prosperous 37 38 April 19, 2022 Ames City Council Workshop: Watersheds Update 20 Land Retirement – Moore Memorial Park Partnership with Ames Parks & Recreation Department 40 Acres Prairie Restoration IFA Grant Funding Seeding Anticipated Early Summer 39 40 April 19, 2022 Ames City Council Workshop: Watersheds Update 21 Ames was the 15th city to be granted the award. Award aligns with the City’s principles of promoting, restoring and protecting our waterways and the Prairie Rivers of Iowa’s mission to promote economic development through the restoration and conservation of Iowa’s cultural and natural resources. Public Works Update Iowa River Town of the Year 2021 3 access points to the newly designated Skunk River Water Trail S. Skunk River low-head dam mitigation project in North River Valley Park Over 9 miles of shared use paths along streams Streambank stabilization projects using methods from the newly developed Iowa River Restoration Toolbox Watershed signs at bridges to encourage stewardship and discourage dumping Annual cleanup events that have removed 17 tons of trash from local rivers Efforts to Promote Streams 41 42 April 19, 2022 Ames City Council Workshop: Watersheds Update 22 Watersheds Update Low Head Dam Modification: Ioway Creek @ Lincoln Way Completed in 2017 Modified grade-control sheet pile with concrete cap with v-notch weir Series of rock weirs below sheet pile Bank regrading and stabilization Bench at base of bank slope for safety Watersheds Update Sanitary Sewer Improvements Annual projects since 2015 CIP Program Annual Avg $4,466,600 Fix fractures: Spot Repair Lining MHs Upcoming: High School Area Veenker Golf Worle Creek Manatt’s/Dayton Basin 12 43 44 April 19, 2022 Ames City Council Workshop: Watersheds Update 23 Watersheds Update S. 5th St. and S. Grand Ave. Wetland (92 Acre Watershed, treats WQ and Channel Protection Volumes (3.08” rain) Water Quality Basin (WQ Vol. for 1.25” rain), Bioswales along roadway, and all Native Vegetation $100,000 WQI Grant IDALS Watersheds Update Welch Avenue Tree Trenches and Permeable Pavers Treats Water Quality Volume for 1.25” rain $100,000 WQI Grant IDALS 45 46 April 19, 2022 Ames City Council Workshop: Watersheds Update 24 Watersheds Update Homewood Slope Stabilization Stabilized extreme erosion added Native Vegetation Watersheds Update Ioway Creek Restoration And Flood Mitigation $3.75M FEMA Grant Pocket Wetlands Removed approx. 750 tons trash, car parts, and tires Tree Logs use for: Rootwads on project, Furniture, Trim, Pallets, and Homebuilding 47 48 April 19, 2022 Ames City Council Workshop: Watersheds Update 25 Watersheds Update Ioway Creek Brookside Park $100,000 WQI IDALS Grant $500,000 WIF Grant $336,609 SRF Sponsored Project Grant Concept Plan 2021 Preliminary Plan 2022 Watersheds Update Ioway Creek Brookside Park 3 Public Meetings Summer 2021 Feedback Rec’d Worked w/ Stakeholders New Alignment 3 Public Meetings March/April 2022 Concept Plan 2021 Preliminary Plan 2022 49 50 April 19, 2022 Ames City Council Workshop: Watersheds Update 26 Watersheds Update Ioway Creek Brookside Park Relieve pressure from stream on east slope New oxbow to improve water quality from storm sewer outlet Use on-site wood and soil to rebuild east slope and stabilize stream banks Reuse material on-site (cut/fill) Reconnect floodplain with bench Preliminary Plan 2022 Reduce tree removal on private property Stabilize eroded banks Add natural in-stream practices like rock and log riffles, j hook vanes, cross vanes, toe wood Reduce flow from top of bank Watersheds Update Ioway Creek Brookside Park Work with Adjacent Property Owners & Parks staff 75% Design Public Meetings Summer 2022 Permitting Construction Winter 2022/23Concept Plan 2021 Preliminary Plan 2022 51 52 April 19, 2022 Ames City Council Workshop: Watersheds Update 27 Watersheds Update Construction Site Runoff Control Program Tracking SWPPP Reviews/Approvals 2019-2020 2020-2021 2021-22 Single Family Homes 59 84 60 Commercial Reviews 13 10 12 Preliminary Plats 1 4 6 Plat additions with Public Improvements 2 2 2 City Project SWPPP Reviews 10 5 2 NOIs Filed for GP #2 Total Projects 24 14 9 City Projects 5 4 1 Iowa State University Projects 6 2 1 Story County Projects 1 0 0 School District Projects 1 0 0 Private Projects (Gas Stations, Subdivision, Apartments, Hotels, Building Additions, Commercial Businesses) 11 8 7 Weekly (City Project) & Quarterly Inspections (Private Sites) Total Conducted 471 563 544 City Projects 248 418 299 Private Projects (Commercial) 161 88 121 Single Family Inspections (Home Lots) 62 57 124 Enforcement Actions Number of Compliance Issues (Private Projects) 165 60 70 Watersheds Update Post Construction Pro ram Plan Review and Approval Type of Development 2019-2020 2020-2021 2021-2022 # Plans Reviewed # Plans pproved # Plans Reviewed # Projects pproved # Plans Reviewed # Projects pproved New Development 5 5 11 8 7 1 Redevelopment 0 0 4 4 4 4 Total 5 5 15 12 11 5 In addition, 25 site plans and subdivisions were reviewed and determined that they were part of a regional watershed that considered the proposed conditions or the proposed development was below ordinance thresholds for stormwater management. 53 54 April 19, 2022 Ames City Council Workshop: Watersheds Update 28 Watersheds Update Coming Soon! Storm Drain Art Ames Public Art Commission (7 designs from 6 persons) (3 Campustown, 4 Downtown) Building Community through Conservation Stone Brooke Subdivision Management Plan Watersheds Update Friends of Parks GroupsAmes High Bee Club Plants Natives in 24th Street Bio-Cell 55 56 April 19, 2022 Ames City Council Workshop: Watersheds Update 29 Watersheds Update 2021 Smart Watersheds Cost Share Rebate Program Rebate Program 2019‐2020 2020‐2021 2021‐2022 Rain Barrels 16 27 18 Composters 47 22 15 Soil Quality Restoration (1 approved but not completed)3 12 6 Native Landscaping (1 approved but not planted)1 6 6 Rain Gardens 2 1 0 Tree Voucher Event‐Partnership with Ames Trees Forever (not held in 2020or 2021) 100 0 0 Native Tree Rebate N/A 35 applications, 58 trees 59 applications, 84 trees Total Rebate Applications 69 103 104 Watersheds Update 2021 Watershed Outreach Events Month Article Topic April o Virtual Earth Day on KHOI announcement o Virtual EcoChat announcement focusing on trees and tree rebate May o Skunk River Low Head Dam project celebration announcement o 10 Year Story County Water Monitoring Report announcement June o Iowa Creek Flood Mitigation Project Moving Forward o Native Tree Rebate Jul o Ames Named “Tree Cit USA” August o Canoes, Kayaks, & Paddle Board Rentals at Ada Hayden Park September o Ioway Creek Stabilization Plans o Pregracke Talk Rescheduled October o Rummage RAMPage helps Non-Profits; recycles Materials community” o Rebates Offered for Water Conservation February o City Partners to Monitor Health of Local Waterwa s DATE & SUBJECT # LIKES, SHARES AND COMMENTS Apr 2- Prairie burn in Christofferson Park 51 Apr 10 Stash the Trash Continues 3 Apr 11 Earth Day Appreciation on the Air KHOI 3 Apr 11, Apr 17, Apr 24, Apr 30 Low Head Dam Celebration Announcements 187 Apr 29 Yard Waste Day Annoucement 11 Ma 4 EcoChats Resource Recover 1 May 9 Tree Planting Announcement 18 May 27 Smart Watersheds rebates 49 June 1 EcoChats Water 3 June 7 College Creek Cleanup 9 June 9, June 13 and June 18 No- Charge Waste Day 39 June 13 Native Tree Rebate 26 June 26, July 17 Rummage RAMPage Announcement 168 July 5 EcoChats-Watersheds 9 July 28 Outdoor Water Conservation Tips 18 Aug 25 Iowa State University WelcomeFest 9 Aug 31 Water Conservation drought 40 Sep 5 and Sep 29 Chad Pregracke Announcement 78 Sep 16, Sep 18 River Town of the Year Events Announcement 29 Sep 28 Watershed Month Proclamation 4 Sep 30 Prairie River of Iowa Wild and Scenic Film Festival 6 Oct 1 Stream Cleanup Annoucement 12 Oct 6, Oct 11 Fall Tree Plantin s 15 Oct 7 Iowa Creek cleanup 12 Oct 8, Oct 22, Nov 9 Fall No-Charge Waste Days 34 Oct 12 Volunteer for Water Quality Snapshot 9 Oct 18 Native Landscapin Pro am 23 Oct 22 Ada Hayden Fishing Pier Ribbon Cuttin 79 Oct 24, Oct 25 Nov 3, Nov 1, Nov 18, Nov 23, Nov 28, Nov 30, Dec 3, Dec 10, Dec 20, Mar 7, Mar 9, Mar 11 Climate Action Plan 184 Dec 18, Jan 18, Feb 23 Dog Waste Pickup 93 Feb 7 Ecochats are Back 2 Feb 13 Storm Drain Art Call to Artists 42 Feb 17, Feb 22 ISU Sustainapolloza 9 Feb 23-Dog waste pickup 35 Mar 1 , Mar 3, Mar 9 Ioway Creek Restoration/Brookside Park Project Public Outreach Meetings 49 TOTAL 1359 CitySide Articles Social Media Posts KASI and KHOI Radio Interviews 57 58 April 19, 2022 Ames City Council Workshop: Watersheds Update 30 Watersheds Update 2021 Watershed Outreach Events Iowa State University Sustainapoolza Event Smart Trash Program Partnership Distribution of Deicer Brochure to Local Snow Removal Businesses Distribution of Letter to Local Carpet Cleaners Update to the Inspection and Maintenance Practices of Non-City Owned Stormwater Practices form Date EcoChat Sub ect # ttendees Apr 2021 Trees 29 May 2021 Reduce/Reuse/ Rec cle 39 Jun 2021 Water 26 Jul 2021 Watersheds 42 Feb 2022 Climate Action Plan 10 Mar 2022 Watersheds 17 Watersheds Update 2021 Watershed Outreach Events October 2021 Watershed Awareness Month Proclamation 59 60 April 19, 2022 Ames City Council Workshop: Watersheds Update 31 Watersheds Update 2021 Watershed Outreach Events Thu., September 30 Speaker: Chad Pregracke, Living Lands and Water- City Auditorium Fri., October 1 -Film Festival Collaboration with Prairie Rivers of Iowa – City Auditorium Sat., October 2: Stream Cleanup, Ioway Creek Watersheds Update 2021 Watershed Outreach Events Event/Group Date # Participants Weight of Trash Collected Stash the Trash April 10 237 1,940 pounds (1 tire) Ioway Creek Cleanup October 2 29 2,500 pounds (13 car tires) Outdoor Alliance/ Workiva Corp. March 17 12 1,220 pounds March 17 Workiva- Outdoor Alliance cleanup 61 62 April 19, 2022 Ames City Council Workshop: Watersheds Update 32 Watersheds Update 2021 Watershed Outreach Events Ioway Creek Clean-up Oct. 2, 2022 Watersheds Update Upcoming Watershed Events Wed., April 20: Pollinator Task Force Thurs., April 28: EcoChat @ Library, Birds, Bees & Pollinators April 29 to April 30: Stash the Trash Sat., April 30: Ioway Creek Cleanup Sat., October 1: EcoFair Go to Prairie Rivers of Iowa website www.prrcd.org to register and for more upcoming watershed related events www.cityofames.org/stormwater 63 64 For Questions about the Report: Dan Haug, Water Quality Specialist * Prairie Rivers of Iowa dhaug@prrcd.org * 515-232-0048 Water Quality Monitoring in Story County: 2021 Highlights Accomplishments in 2021  Local partners released a 10-year plan for water quality monitoring in Story County. Prairie Rivers of Iowa gave 12 presentations about the plan to stakeholders.  Staff and volunteers from 9 organizations met 7 times in 2021 to implement the plan and provide direction and support for monitoring efforts.  The City of Ames Water & Pollution Control laboratory tested water samples from 15 stream sites monitored monthly and 3 sites monitored weekly.  Story County Conservation launched a volunteer monitoring pr ogram. Staff, 17 volunteers, and one business used field kits to monitor streams and lakes around the county.  Story County Conservation partnered with Iowa DNR to do weekly bacteria testing of 2 swimming beaches at county lakes: Peterson Park West and Hickory Grove Lake.  Local partners engaged new volunteers through 2 water monitoring events, a training event with the Izaak Walton League, and a cleanup of trash in Ioway Creek. In addition, local partners organized 4 in-person events and 3 webinars that offered opportunities for Story County residents to learn about water quality issues and solutions.  Prairie Rivers of Iowa used special equipment to collect 40 samples of runoff from creeks and storm sewers during 5 rainstorms, with the help of volunteers.  Prairie Rivers of Iowa published 12 articles about water quality and watersheds on their blog, as well as posting regular water quality updates and real-time data streams on a web page dedicated to monitoring efforts in Story County Find the full report and updates on water quality in Story County at: www.prrcd.org/story-county-water-monitoring For Questions about the Report: Dan Haug, Water Quality Specialist * Prairie Rivers of Iowa dhaug@prrcd.org * 515-232-0048 Key Findings from 2021 monitoring Issues Metrics Findings Recreation and waterborne illnesses Escherichia coli (E. coli) bacteria E. coli was usually low at swimming beaches and parts of the South Skunk River, but high in most creeks. We can narrow down likely sources of contamination by checking whether bacteria is highest during low flows or high flows. Gulf Hypoxia and nutrient losses Nitrogen and phosphorus load This year was too dry to have much influence on Gulf Hypoxia. Focusing on normal-to-wet periods will help to identify hot spots where conservation practices are needed and evaluate whether conservation practices are working. Nutrient enrichment and algae blooms in lakes and streams Total phosphorus, orthophosphate, nitrate During dry conditions, the highest nutrient levels are below wastewater treatment plants. Fish and the insects they eat, stream and lake ecology Index of benthic macroinvertebrates, dissolved oxygen, chloride Low dissolved oxygen is harming invertebrates in some streams. Effluent from wastewater treatment plants could be a factor, but some patterns are still unexplained. Erosion and sediment impacts on aquatic life Total suspended solids, transparency Untreated stormwater from older neighborhoods can have extremely high levels of sediment, phosphorus, and bacteria. 515.239.5150 main 515.239.5496 fax 18 00 E 13th Street P.O. Box 811 Ames, IA 50010 www.CityofAmes.org/Water Water and Pollution Control Department Administrative Division Memo Mayor and Council: At your workshop next Tuesday evening, I will share with you the rationale supporting a recommended five percent (5%) sewer rate adjustment that would be effective for bills due on or after July 1, 2022. The presentation will include a review of recent trends in water and sewer rates in Ames, across Iowa, and throughout the US. I will share the projected balances in the Sewer Fund over the next ten years based on the anticipated operating and capital expenses, and a likely pattern of rate increases that would be needed to fully fund the anticipated expenses. Finally, I will make the staff recommendation to move forward with a five percent increase in sewer rates on July 1. Note that no adjustment to water rates are proposed for the coming year. As a preview to the discussion, I have attached a set of slides that graphically present the current and projected rates. I will present a subset of these slides at the April 19 workshop. I look forward to discussing with you the plan to meet the financial needs of the water and sewer utilities as we strive to fulfill the expectations of our community into the future. To: Mayor and City Council From: John Dunn Date: April 15, 2022 Subject: Sewer Rate Workshop 4/7/2022 1 FY 2022-23 Water & Sewer Rates April 19, 2022 1 •National & State-wide Trends in Rates •Projected Need for Revenue Increase •Translating Revenue Needs to Rates •Customer Perspective •Council Direction Outline 2 4/7/2022 2 National and State Trends Data sources include: •2020 Cost of Clean Water Index National Association of Clean Water Agencies •2021 Water and Wastewater Rate Survey American Water Works Association •2021 Iowa Water and Wastewater Rate Survey City of Ames Water and Pollution Control 3 2020 Cost of Clean Water Index, NACWA Average annual wastewater bill has doubled nationally in last 16 years ($527 in 2020 versus $262 in 2004) Average national wastewater sewer charges increased by 2.9% from 2019 to 2020 2.4x the rate of inflation (2020 was the 19th consecutive year that sewer rates nationally have outpaced inflation) National Trends 4 4/7/2022 3 2021 Water & Wastewater Rate Survey, American Water Works Association •Water utilities continue to shift away from declining block rate structures (12%) and towards inclining block structures (47%) •Wastewater utilities are predominately uniform block structures •Monthly billing intervals are most common (68.3%), followed by bi- monthly (14.9%) and quarterly (12.6%) •Charges were highest in the Northeast. Water charges were lowest in the South, and wastewater charges were lowest in the West. National Trends 5 National Trends 2016-2021 Sources: 2016 Water and Wastewater Rate Survey, AWWA/Raftelis Financial Consultants 2021 Water and Wastewater Rate Survey, AWWA/Raftelis Financial Consultants Nationwide average for residential service, 1,000 cf/mo., 5/8” meter, 6 Water National Average Annual Increase: 3.7% Sewer National Average Annual Increase: 4.5% Average Annual Increase in CPI: 2.6% 4/7/2022 4 •Drinking Water: 77% (30 of 39) •More than 5%: 46% (18 of 39) •More than 10%: 26% (10 of 39) •Wastewater: 75% (32 of 43) •More than 5%: 58% (25 of 43) •More than 10%: 28% (12 of 43) 2019 versus 2021 Iowa Water & Sewer Rate Survey, City of Ames, Iowa Percent of Iowa Utilities serving >10,000 with a rate increase in past two years: Iowa Trends 7 Iowa vs. National Trends 2016-2021 Water National Average Annual Increase: 3.7% Iowa Average Annual Increase: 4.5% Sewer National Average Annual Increase: 4.5% Iowa Average Annual Increase: 6.3% Average Annual Increase in CPI: 2.6% Iowa Sources: 2016 Water and Sewer Rate Survey, City of Ames, IA 2021 Water and Sewer Rate Survey, City of Ames, IA Iowa average for residential service, 600 cf/mo., 5/8” meter, 8 4/7/2022 5 Recent Rate Adjustments in Ames 9 Water Sewer FY 17/18 -- -- FY 18/19 3.5% 3% FY 19/20 7% -- FY 20/21 2% 5% FY 21/22 6% -- Annual Average 3.7% 1.6% Ames vs. Iowa & National Trends 2016-2021 10 Water National Average Annual Increase: 3.7% Iowa Average Annual Increase: 4.5% Ames Average Annual Increase: 3.7% Sewer National Average Annual Increase: 4.5% Iowa Average Annual Increase: 6.3% Ames Average Annual Increase: 1.6% Average Annual Increase in CPI: 2.6% 4/7/2022 6 Iowa Trends in Water Rates 1 9 9 9 - 2 0 20 , C it ie s w it h p op u lat ion >1 0 ,0 0 0 w it h lim e s of te nin g , 6 0 0 cf p e r m ont h Statewide Median Ames Rates 11 ** Ames is at the 30th percentile, based on 2021 rates ** $0 $10 $20 $30 $40 $50 $60 1998 2003 2008 2013 2018 Water Rates in Iowa, 1999-2021 Cities >10,000 600 cubic feet per month Ames vs. Ankeny 12 ** Ames is at the 30th percentile, based on 2021 rates ** $0 $10 $20 $30 $40 $50 $60 1998 2003 2008 2013 2018 Water Rates in Iowa, 1999-2021 Cities >10,000 600 cubic feet per month Statewide Median Ames Water Rates Ankeny Water Rates 4/7/2022 7 Ames versus Iowa City 13 ** Ames is at the 30th percentile, based on 2021 rates ** $0 $10 $20 $30 $40 $50 $60 1998 2003 2008 2013 2018 Water Rates in Iowa, 1999-2021 Cities >10,000 600 cubic feet per month Statewide Median Ames Water Rates Iowa City Water Rates Iowa Trends in Sewer Rates 1 9 9 9 - 2 0 21 , C it ie s w it h p op u lat ion >1 0 ,0 0 0 , 6 0 0 cf p e r m ont h Statewide Median Ames Rates 14 ** Ames is at the 21st percentile, based on 2021 rates ** $0 $10 $20 $30 $40 $50 $60 $70 $80 1998 2003 2008 2013 2018 Sewer Rates in Iowa, 1999 - 2021 Cities >10,000 600 cubic feet per month 4/7/2022 8 Ames versus Ankeny Statewide Median Ames Sewer Rates Ankeny Sewer Rates 15 ** Ames is at the 21st percentile, based on 2021 rates ** $0 $10 $20 $30 $40 $50 $60 $70 $80 1998 2003 2008 2013 2018 Sewer Rates in Iowa, 1999 - 2021 Cities >10,000 600 cubic feet per month Ames versus Iowa City 16 ** Ames is at the 21st percentile, based on 2021 rates ** $0 $10 $20 $30 $40 $50 $60 $70 $80 1998 2003 2008 2013 2018 Sewer Rates in Iowa, 1999 - 2021 Cities >10,000 600 cubic feet per month Statewide Median Ames Sewer Rates Iowa City Sewer Rates 4/7/2022 9 17 Current Water Rates ($/cf) Existing Winter All customers; all consumption $0.0243 Summer Residential Block 1 (First 1,000 cf) $0.0243 Block 2 (Next 1,500 cf) $0.0428 Block 3 (Over 2,500 cf) $0.0644 Irrigation & Yard Water Block 1 (First 2,000 cf) $0.0350 Block 2 (Next 3,000 cf) $0.0644 Block 3 (Over 5,000 cf) $0.1072 Non-Residential All consumption $0.0318 Non-Peaking Industrial All consumption $0.0243 18 Current Sewer Rates 5.0% Existing Increase Total Minimum Charge $11.58 $0.58 $12.16 All customers, per month Prorated Minimum $4.45 $0.22 $4.67 Consumption, per 100 cubic feet $2.96 $0.15 $3.11 All customers, all consumption 4/7/2022 10 Add a footer 19 Forces Driving Capital Expenses •Nutrient Reduction Modifications •Infrastructure Renewal/ Replacement •What’s not impacting rates: Ames Plan 2040 – $9.4 million in American Rescue Plan Act funding 5% -25,000 -20,000 -15,000 -10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 En d i n g B a l a n c e ( $ 1 , 0 0 0 ' s ) Ending Fund Balance Operating Reserve Percentage Rate Increase Sewer Fund Rate Model – No Adjustments 20 4/7/2022 11 •Rate increases should be done with smaller percentage increases on a more frequent basis, as opposed to larger increases on a less frequent basis. •Slowly grow the operating reserve in each Fund over time until it reaches 25% of the Fund’s annual operating expenses Guiding Philosophy on Rates 21 Water and Sewer Rate Projections Last Year Current Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 Water Fund 2% 6% 8% 8% 9% 8% 8% Sewer Fund 5% 5% 7% 8% 8% 8% 22 4/7/2022 12 5%5%7%8%8%8% 0 5,000 10,000 15,000 20,000 25,000 30,000 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 En d i n g B a l a n c e ( $ 1 , 0 0 0 ' s ) Ending Fund Balance Operating Reserve Percentage Rate Increase Sewer Fund Rate Model 23 Water •Over the next four years between 43% and 50% of utilities anticipate a rate increase in any given year Sewer •Over the next four years between 26% and 40% of utilities anticipate a rate increase in any given year Iowa Trends 24 4.3% 4.7% 3.8% 4.7% 5.5% 4.9% 4.3% 3.8% 0% 1% 2% 3% 4% 5% 6% 7% 8% 2022 2023 2024 2025 Projected Iowa Annual Change in Cost, Based on Approved and Anticipated Increases City of Ames Survey Water - Average Magnitude of Increase Sewer - Average Magnitude of Increase 2021 Iowa Water & Sewer Rate Survey, City of Ames, Iowa 4/7/2022 13 Rate Projections vs. Statewide Trends 25 $32.38 $34.03 $35.76 $37.59 $39.51 $41.53 $43.66 $45.90 $48.26 $50.75 $53.36 $97.88 $103.43 $109.30 $115.51 $122.07 $129.03 $136.38 $144.16 $152.40 $161.11 $170.34 $57.91 $59.38 $61.66 $63.82 $66.29 $68.92 $71.92 $74.77 $77.68 $80.75 $83.89 $71.77 $75.70 $79.85 $84.23 $88.86 $93.75 $98.91 $104.37 $110.13 $116.22 $122.66 $- $25.00 $50.00 $75.00 $100.00 $125.00 $150.00 $175.00 $200.00 $225.00 $250.00 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Statewide Range Ames Residential Statewide Median 26 Proposed Sewer Rates 5.0% Existing Increase Total Minimum Charge $11.58 $0.58 $12.16 All customers, per month Prorated Minimum $4.45 $0.22 $4.67 Consumption, per 100 cubic feet $2.96 $0.15 $3.11 All customers, all consumption 4/7/2022 14 •High strength surcharge rates; Fats, Oils, and Grease (FOG) rates; and laboratory analysis fees would also increase by 5% •Meter setting fees would be adjusted based on actual cost recovery •These would happen as a part of the City-wide fee schedule adjustment later in the spring Associated Rates and Fees 27 Sample Customer Bill Median Use Residential Includes both Sewer and Storm Water adjustments Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 600 kWh and 600 cf $81.10 $4.95 $28.57 $29.34 $143.96 Electric ECA -$4.50 -$4.50 Totals $76.60 $4.95 $28.57 $29.34 $139.46 Increase Due to Rate Change $0.00 $0.25 $0.00 $1.47 $1.72 Totals $76.60 $5.20 $28.57 $30.81 $141.18 % Impact on Total Bill 1.23% 28 4/7/2022 15 Recommended Action & Timeline •Direct staff to prepare an ordinance to: •Adjust Sewer Rates by 5% •New rates effective for bills mailed on or after July 1, 2022 •Timeline •First reading on April 26 •Second reading on May 10 •Third reading and adoption on May 24 29 Questions & Direction 4/7/2022 16 Sample Customer Bill Minimal Use Residential Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 100 kWh and 100 cf $20.45 $4.95 $15.72 $14.54 $55.66 Electric ECA -$0.75 -$0.75 Totals $19.70 $4.95 $15.72 $14.54 $54.91 Increase Due to Rate Change $0.00 $0.25 $0.00 $0.73 $0.98 Totals $19.70 $5.20 $15.72 $15.27 $55.89 % Impact on Total Bill 1.78% 31 Sample Customer Bill Median Use Residential Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 600 kWh and 600 cf $81.10 $4.95 $28.57 $29.34 $143.96 Electric ECA -$4.50 -$4.50 Totals $76.60 $4.95 $28.57 $29.34 $139.46 Increase Due to Rate Change $0.00 $0.25 $0.00 $1.47 $1.72 Totals $76.60 $5.20 $28.57 $30.81 $141.18 % Impact on Total Bill 1.23% 32 4/7/2022 17 Sample Customer Bill Large Residential Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 1,000 kWh and 1,000 cf $129.62 $4.95 $38.85 $41.18 $214.60 Electric ECA -$7.50 -$7.50 Totals $122.12 $4.95 $38.85 $41.18 $207.10 Increase Due to Rate Change $0.00 $0.25 $0.00 $2.06 $2.31 Totals $122.12 $5.20 $38.85 $43.24 $209.41 % Impact on Total Bill 1.12% 33 Sample Customer Bill Small Commercial (GP) Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 2,000 kWh and 600 cf $254.40 $4.95 $33.37 $29.34 $322.06 Electric ECA -$15.00 -$15.00 Totals $239.40 $4.95 $33.37 $29.34 $307.06 Increase Due to Rate Change $0.00 $0.25 $0.00 $1.47 $1.72 Totals $239.40 $5.20 $33.37 $30.81 $308.78 % Impact on Total Bill 0.56% 34 4/7/2022 18 Sample Customer Bill Small Commercial (GP) Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 5,000 kWh and 1,000 cf $612.60 $4.95 $46.85 $41.18 $705.58 Electric ECA -$37.50 -$37.50 Totals $575.10 $4.95 $46.85 $41.18 $668.08 Increase Due to Rate Change $0.00 $0.25 $0.00 $2.06 $2.31 Totals $575.10 $5.20 $46.85 $43.24 $670.39 % Impact on Total Bill 0.35% 35 Sample Customer Bill Small Commercial (GP) Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 10,000 kWh and 3,000 cf $1,209.60 $9.90 $127.39 $100.38 $1,447.27 Electric ECA -$75.00 -$75.00 Totals $1,134.60 $9.90 $127.39 $100.38 $1,372.27 Increase Due to Rate Change $0.00 $0.50 $0.00 $5.02 $5.52 Totals $1,134.60 $10.40 $127.39 $105.40 $1,377.79 % Impact on Total Bill 0.40% 36 4/7/2022 19 Sample Customer Bill Commercial (LP) Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 20,000 kWh and 5,000 cf $2,181.81 $9.90 $194.79 $159.58 $2,546.08 Electric ECA -$150.00 -$150.00 Totals $2,031.81 $9.90 $194.79 $159.58 $2,396.08 Increase Due to Rate Change $0.00 $0.50 $0.00 $7.98 $8.48 Totals $2,031.81 $10.40 $194.79 $167.56 $2,404.56 % Impact on Total Bill 0.35% 37 Sample Customer Bill Commercial (LP) Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 60,000 kWh and 15,000 cf $6,221.55 $14.85 $558.10 $455.58 $7,250.08 Electric ECA -$450.00 -$450.00 Totals $5,771.55 $14.85 $558.10 $455.58 $6,800.08 Increase Due to Rate Change $0.00 $0.75 $0.00 $22.78 $23.53 Totals $5,771.55 $15.60 $558.10 $478.36 $6,823.61 % Impact on Total Bill 0.35% 38 4/7/2022 20 Sample Customer Bill Commercial (LP) Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 100,000 kWh and 20,000 cf $10,284.95 $44.55 $779.20 $603.58 $11,712.28 Electric ECA -$750.00 -$750.00 Totals $9,534.95 $44.55 $779.20 $603.58 $10,962.28 Increase Due to Rate Change $0.00 $2.25 $0.00 $30.18 $32.43 Totals $9,534.95 $46.80 $779.20 $633.76 $10,994.71 % Impact on Total Bill 0.30% 39 ORDINANCE NO. AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING SECTION 28.304(3) THEREOF, FOR THE PURPOSE OF ESTABLISHING SEWER RATES 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 28.304(3) as follows: “Sec. 28.304. SEWER RATES ESTABLISHED. . . . (3) For each monthly billing on or after July 1, 2022, each customer shall be charged a minimum monthly charge. The minimum charge for each location shall be twelve dollars and sixteen cents ($12.16). The minimum monthly charge may be prorated, based on a 30-day billing period, for the customer’s initial and/or final bills, provided that in no case shall the prorated minimum monthly charge be less than four dollars and sixty-seven cents ($4.67). In addition, for all water metered beginning with the first cubic foot each month, each user shall pay three dollars and eleven cents ($3.11) per 100 cubic feet. (Ord. No. 3168, Sec. 1, 4-28-92; Ord. No. 3326, Sec. 2, 5-9-95; Ord. No. 3834, 5-24-05; Ord. No. 3956, 06-10-08; Ord. No. 4037, 5-11-10; Ord. No. 4144, 5-14-13; Ord. No. 4814, 5-27-14; Ord. No. 4215, 5-12- 15; Ord. No. 4351, 5-8-18; Ord. 4408, 4-14-2020).” Section Two. All ordinances, or parts of ordinances, in conflict herewith are hereby repealed to the extent of such conflict, if any. Section Three. This ordinance shall be in full force and effect from and after its passage and publication as required by law. Passed this day of , . _____________________________________________________________________________ Diane R. Voss, City Clerk John A. Haila, Mayor