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HomeMy WebLinkAboutA001 - January 16, 2024, Special Meeting of the Ames City Council, Full Minutes1 MINUTES OF THE SPECIAL MEETING OF THE AMES CITY COUNCIL AMES, IOWA JANUARY 16, 2024 The Special Meeting of the Ames City Council was called to order by Mayor John Haila at 5:15 p.m. on the 16th day of January, 2024, 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 Jeff Clark was absent. Council Member Gloria Betcher entered the meeting at 6:01 p.m. WORKSHOP: City Manager Steve Schainker began the staff presentation of the recommended five-year Capital Improvements Plan (CIP) for fiscal years (FY) 2024-2028. Staff divided the presentation into five categories: 1) Public Safety, 2) Utilities Program, 3) Transportation Program, 4) Culture and Recreation Programs, and 5) Other. He noted that a staff had done a great job prioritizing the projects in the CIP, and that each project includes a description of the work as well as the financing strategy. City Manager Schainker stated that staff was not seeking direction on the projects contained within the CIP at this meeting. Direction would be sought at the Budget Wrap-Up meeting in February as public input on the matter was still needed. He emphasized that the theme of this CIP is catch up because rising costs, interest rates, and delays in receiving equipment have pushed back completion dates from projects that were approved in the previous CIPs. Council Member Gartin inquired about increased rates of borrowing and high bond rates for municipalities. Finance Director Corey Goodenow shared that last year staff conservatively estimated that the City would use 5% as a borrowing cost. The borrowing cost turned out to be roughly 4%, thus staff has projected a 5% borrowing cost again this year. He shared that staff tries to avoid borrowing money before it is necessary, which aids the thought process of emphasizing the theme of catch up. The Fitch Family Indoor Aquatic Center was noted as the primary component of the City’s borrowing for FY 24/25. PUBLIC SAFETY: Fire Fire Chief Rich Higgins shared that the Fire Department has a total of three projects in this five - year CIP. The first project scheduled was the replacement of Fire Engine #2 in FY 25/26. He noted that a cost increase was required due to new emission standards from the Environmental Protection Agency (EPA) going into effect in 2027. These standards will reduce the nitrous oxide that is allowed for emissions by 75%, which comes at a cost increase for the motor of 8.6%. Due to the build time of 40-48 months for fire apparatuses, compliance with the 2027 EPA standards is necessitated even if ordered in FY 2024/25. There are also National Fire Protection Association (NFPA) standards related to the braking and traction control systems that have seen price increases as well. With the vehicle replacement plan implemented by the department, the current apparatus will be held on reserve status for an additional 10 years. City Manager Schainker noted that the project costs for the replacement include the refurbishing costs to maintain the current apparatus to serve under reserve status, and Chief Higgins added that Iowa State University pays 25% of the debt service that the Department carries on apparatuses. 2 The apparatus for future Fire Station #4 was noted by Chief Higgins as the second item in the Department’s CIP. He stated that all the aforementioned emission standards and cost increases would be applicable to this apparatus as well, and the projected costs reflected such. He emphasized that this project was scheduled for five years out, though staff does have the flexibility to push the project out or advance it forward to match the speed of development in areas identified in Ames Plan 2040. The Station Alerting System was the final project for the Fire Department in CIP. Chief Higgins explained that this project had been seen in the previous CIP and temporary modifications to the system had been made by the Information Technology (IT) Division to ensure the system stayed operational though some functionality had been lost. He noted that the system was 15 years old and the replacement costs included all three current fire stations. Mayor Haila inquired about the delivery and payment schedule for the replacement apparatus for Fire Station #2. Chief Higgins clarified that the apparatus would be ordered in FY 2024/25; however, payment and delivery of the apparatus would not be anticipated until FY 2028/29. UTILITIES PROGRAM: Electric Services Director of Electric Services Donald Kom reviewed that Electric Services divides projects into major groups which include: 1) Beneficial Electrification, 2) Transmission/Distribution, and 3) Power Plant. Advanced metering infrastructure and Electric vehicle infrastructure comprise the beneficial electrification group, which accounts for 11% of the five-year budget. Director Kom noted that these infrastructure improvements provide benefits to both the customer and utility. Council Member Gartin inquired about the electric vehicle infrastructure, wondering if the project was responsive to the community needs. Director Kom replied in the affirmative, noting that expanding infrastructure also served as an incentive to customers as the utility continues to see electricity sales for vehicles increase month over month. Transmission/Distribution accounted for 44% of the five-year budget, with dollars directed toward transmission reconstruction, fiber optic line replacement, streetlight and line relocation, and reliability improvements for the substations located at Mortensen Road, Dayton Avenue, and Vet Med. Director Kom highlighted that the fiber optic line replacement project was new to the CIP this year, as the Ames Electric system has its own fiber optic network that operates the Department’s Supervisory Control and Data Acquisition (SCADA) system. The Power Plant accounted for the remaining 45% of the 5-year budget. Director Kom explained that combustion turbine improvements are needed as well as major and minor turbine overhauls for Unit #7 and Unit #8. Infrastructure improvements are also needed though building modifications to enhance energy efficiency and security in addition to necessary maintenance activities. Director Kom discussed the removal of decommissioned generating units that are no longer operable, which included Unit #5 and Unit #6. Other generation related items reviewed were refuse derived fuel (RDF) bin modifications, coal yard reclamation, and a plant controlled wi-fi network. Director Kom concluded by noting that the shift in capital dollars toward improvements in 3 transmission and distribution is to maintain the reliability of the City’s electric grid while still allocating funds to beneficial electrification to create a foundation from which the utility can manage peaks while supporting the approved Climate Action Plan (CAP). Mayor Haila inquired about the utility's black start capability – the ability of generation to restart the power system to recover from a blackout. Director Kom explained that Combustion Turbine #1 (CT1) had black start capability, which had been tested procedurally by Power Plant staff to where staff believes CT1 could restart the power system without having to rely on transmission. Council Member Gartin wondered about the City’s solar array. Director Kom shared that Sun Smart Ames is a 2-megawatt system with roughly 80% of the power packs purchased by customers. He encouraged Ames electric customers to purchase a power pack but noted that the 20% that is unspoken for at this time is brought back into the electric portfolio for the benefit of all residents. Water Production/Treatment Director of Water and Pollution Control John Dunn walked through the projects planned for the Department in the area of Water Production and Treatment. He highlighted facility improvements including an addition on the technical services complex, water plant improvements that encompassed major maintenance activities, lime lagoon improvements that comprised underdrain and decant pump replacement, and advance metering infrastructure that is scheduled to be completed in FY 2024/25. Council Member Gartin inquired about the technical services complex addition, wondering if the CAP was a calculus in any of the revisions. Director Dunn replied in the affirmative, noting that LEED like design is desired by staff. Various other activities were reviewed by Director Dunn, which included: the Ada Hayden Water Quality Study; Well Field Standby Power Project that was funded via a FEMA Hazard Mitigation Grant; SAM Pump Station Improvements, Physical and Cyber Security Improvements; Prairie View Industrial Center Elevated Tank construction that was necessary to maintain pressure and for fire protection; Wellhead Rehabilitation that would segregate the low and high voltage components; new Water Treatment Plant Pumps and Drives to add additional pumping capacity and variable frequency drives; and repainting the MAC Water Tower that was constructed in 2003. He noted the projects that could be delayed depending on urban development or equipment conditions. Water Pollution Control Director Dunn shifted the presentation to focus on the other component of the municipal water cycle: the Water Pollution Control Facility. He highlighted the major project at the facility, the Nutrient Reduction Modifications, and noted that cost estimates for the project remain consistent with the May 2023 presentation. He added that the design phase for the project is roughly 90% complete, then the project would advance to the permitting and bid phase. Facility improvement projects were then reviewed by Director Dunn, which included Cogeneration System maintenance, Watershed Based Nutrient Reduction, Lift Station improvements, Clarifier maintenance, and assorted equipment repairs, maintenance, replacement, and upgrades for areas not impacted by the Nutrient Reduction project. 4 Water Distribution Director of Public Works John Joiner reviewed the Water Distribution improvements scheduled in the CIP after presenting a video that highlighted the Department’s completed projects from the previous fiscal year. City Manager Schainker noted that the citizens of Ames are fortunate that the Mayor and City Council are willing to appropriate funds to the street system as a proactive investment. He shared that, in other cities, budget cuts often lead to decreased infrastructure improvements; however, delaying those improvements increases the overall cost. He furthered that City staff realizes that citizens are frustrated with the inconvenience of reconstruction projects, but staff hopes citizens remain patient knowing that the relatively short inconvenience results in long lasting improvements. Mayor Haila inquired about lead services and asked for elaboration on the topic. Director Joiner noted that by ordinance, the homeowner is responsible for the service line from the tap of the water main all the way into the home. He furthered that, however, when the City completes a Water System Improvement project and encounters a lead service, the City replaces the service line to the water meter as part of the project. He highlighted that the general estimate of staff is that there are around 300 lead service lines remaining in City limits. Sanitary Sewer System Director Joiner noted that the Sanitary Sewer improvement projects have decreased funding for the first two years of the five-year CIP, as there are inflow and infiltration projects currently underway that are SRF funded. Staff is working through the SRF requirements to complete the projects, explained Director Joiner. Stormwater Management There were three programs of note highlighted by Director Joiner in the area of Stormwater Management. He reviewed the site map for each program, briefly describing the anticipated results of the improvements. Resource Recovery The budget for the Resource Recovery Plant (RRP) was compiled with waste to energy “business as usual” in mind, though City staff continues to evaluate options in regards to solid waste management, which may impact future budgets. Director Joiner highlighted the projects planned for the RRP that included serval items to help the City continue moving forward on recycling initiatives. Council Member Gartin noted that there was lots of community excitement and interest in recycling and inquired about anticipated expense increases for the program. Director Joiner shared that the cost increases had been minimal with dollars spent toward additional roll off containers for collection. He highlighted that City staff were able to transport the collected cardboard. Thus, the City nets revenue on that material stream as well as metals. Director Joiner noted that staff will have to continue to monitor the revenues and expenditures as the program expands. TRANSPORTATION PROGRAM: Street Improvements Director Joiner presented the map of all five years of the transportation projects, which included streets, signals, and the intelligent transportation system (ITS). City Manager Schainker focused 5 on the South 16th Street Road widening, which will be widened to match the cross-section from the Vet Med Trail to University Boulevard. This project will result in four lane travel with turn lanes and shared use path facilities on both sides of the roadway. The traffic signals are included and scheduled in the Traffic Improvements portion of the budget. City Manager Schainker emphasized that this is an institutional road, which means it is not the responsibility of the City to improve; however, traffic pressure on this roadway is due to the City project that extended Grand Avenue to South 16th Street. He noted that staff believes there is a responsibility on the City’s part to mitigate the congestion and pay for the project. Council Member Betcher inquired about the signal at the Vet Med Trail crossing. Traffic Engineer Damion Pregitzer noted that the signal was specially designed for that crossing and would remain with the project. Shared Use Paths The Shared Use Path activities were presented by Director Joiner, which included system expansion, multi-modal roadway improvements, and path maintenance. He presented the map of the planned Shared Use Path projects, highlighting that funds in FY 2027/28 are reserved for a location to be determined by the Bicycle and Pedestrian Master Plan finalization. Council Member Gartin shared his excitement and requested that a ribbon cutting ceremony be held to celebrate the completion of the shared use path extension that goes underneath Duff Avenue. Director Joiner noted that staff would coordinate the ribbon cutting ceremony and engaged with the City Council in questions regarding projects currently underway. Traffic Improvements Director Joiner reviewed the Traffic Improvements that encompassed the ITS, Traffic System Capacity improvements, Traffic Signal program, and Street Rehabilitation. He highlighted that full replacement of the Lincoln Way bridge would need to be considered and staff has funding scheduled beginning in FY 2028/29. Airport The Airport Improvement projects concluded the Transportation Program for the Public Works Department. Director Joiner shared that these projects included Airside Improvements, Airport Entryway Improvements, and Airport Facility Improvements. City Manager Schainker noted that outside funding from federal and state grants account for approximately 80% of the project costs, though a local match is required. He elaborated that local match funds are normally withdrawn from the Airport Improvements fund; however, the Airport Improvements fund does not a balance to cover the local match requirement. Thus, staff is recommending the use of GO Bonds to pay for the remainder of the local match, which is built into the long-range forecasting for the debt service. Engineer Pregitzer concluded with discussion of project specifics with the City Council members. Transit System Transit Director Barbara Neal presented the Transit System CIP, which was approved by the Transit Agency Board of Trustees at its December 2023 meeting. She noted that as staff developed the CIP, they took a conservative financial approach to ensure adequate funding while sill focusing on the goal of connecting people to community with safe and efficient 6 transportation. She furthered that implementation of the CIP is dependent on federal, state, and local funding. Staff prioritized projects by putting the greatest emphasis on Vehicle Replacement and Rehabilitation and Building Improvements and Expansion. Director Neal detailed the projects that fell within these categories and engaged with questions from the City Council. She then presented the Technology Improvements planned, which included passenger facing technology, infotainment monitors, shop and office equipment, and bus stop improvements. Council Member Beatty-Hansen inquired about the use of benches and shelters in bus stop improvements. Assistant Director of Fleet and Facilities James Rendall noted there were approximately 48 shelters in the system, with benches being less frequently utilized due to size requirements to proper placement. Director Neal explained that staff aims to place shelters in high traffic areas, with benches being more difficult to place. She explained that benches are most often placed at the request of a property owner before elaborating on costs of each bus stop facility. City Manager Schainker noted that Transit staff does an excellent job of securing federal, state, and local grants, emphasizing the focus on leveraging non-tax paying dollars to fund the transit system. He stated that the Transit Department also has the opportunity to utilize grants to offset operating costs. CULTURE AND RECREATION PROGRAM: Parks and Recreation Director of Parks and Recreation Keith Abraham examined the CIP for Parks and Recreation related activities. He highlighted the approximately 80% of the funding allocated in the CIP is directed toward the construction of the Fitch Family Indoor Aquatic Center. He provided a brief synopsis of following projects also included in the CIP, which had been topics of recent City Council discussion: • Community Center Gym Floor Replacement • Parking at North River Valley • Canoe Access Points on the Skunk River • Splash Pad Construction at Daley Park • Playground Equipment Improvements • ADA Transition Plan Improvements • Ada Hayden Heritage Park Improvements • Moore Memorial Park Pedestrian Bridge • Homewood Golf Course Hole #9 Bridge Replacement • Furman Aquatic Center Facility Improvements The City Council engaged in questions with Director Abraham, and Council Member Corrieri inquired about status updates for already approved projects. Director Abraham provided an update on the agility course and mini pitch. Mayor Haila noted that amenities are important to the community, and the City Council has an interest in the completion of projects previously approved. Cemetery Director Abraham noted two CIP projects scheduled for cemetery activities, which included new fencing for the Ontario Cemetery and a new columbarium at the Municipal Cemetery. Mayor Haila inquired about the fencing project for the Inis Grove Tennis Courts. Director Abraham 7 noted that the project had been rescheduled to take place at the time of the basketball court reconstruction. OTHER: Library City Manager Schainker highlighted the scheduled carpet replacement project. He noted that the project is a major undertaking and staff has seen cost increases to complete the project, for which funding has been adjusted for in the CIP. Downtown and Campustown Façade Program and Neighborhood Improvement Program City Manager Schainker noted there were no changes to the programs that required consideration by the City Council. Transmittal Letter City Manager Schainker emphasized that there are five projects not included in the CIP; however, at this time next year, these projects will have to be prioritized by the City Council. These projects included: Animal Control Shelter (new), Fire Station #2 (relocation), Fire Station #4 (new), Indoor Recreation Center (new), and Ontario Park Development (new). City Manager Schainker noted the likelihood of a bond issue being necessary for funding, thus, staff would be compiling more information for City Council consideration to help make wise decisions in relation to these projects. Director Goodenow presented the projection of debt capacity, noting that the state limits the City’s total debt capacity to 5% of actual valuation. He briefly discussed the City policy for reserves before reviewing the debt capacity comparison with peer cities. City Manager Schainker concluded by noting that Public Input on the CIP would begin at the next regular City Council meeting with the Budget Wrap-Up meeting scheduled for the first regular meeting in February. DISPOSITION OF COMMUNICATIONS TO COUNCIL: Mayor Haila noted that there was one item from Lee Anne Wilson regarding the Climate Action Plan which did not require action by the City Council. COUNCIL COMMENTS: Council Member Gartin shared his excitement surrounding the CIP, noting that there are a lot of great projects being incorporated. He extended kudos to Housing Coordinator Vanessa Baker-Latimer for her involvement in coordinating the Martin Luther King (MLK) Jr. Day Celebration event. He noted that it was a wonderful event with a large number of attendees. He concluded by discussing the federal debt, highlighting the City projects that require federal funding. Council Member Rollins echoed praise for the MLK Jr. Day Celebration event. She also noted that the community of Perry, Iowa, continued to be in thoughts and prayers after the tragic event at the local school. Council Member Beatty-Hansen also echoed congratulations for the MLK Jr. Day Celebration event, extending a thank you to everyone that served on the organizing committee. 8 Mayor Haila provided one point of clarification on Council Member Gartin’s comment, noting that the City is self sufficient in terms of funding operations, though the City does receive federal funding for serval projects and programs. ADJOURNMENT: Moved by Betcher, seconded by Corrieri, to adjourn the meeting at 7:58 p.m. Vote on Motion: 6-0. Motion declared carried unanimously. __________________________________ ____________________________________ Carly M. Watson, Deputy City Clerk John A. Haila, Mayor __________________________________ Renee Hall, City Clerk