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HomeMy WebLinkAbout~Master - Regular Meeting of the Ames City Council 11/13/2001MINUTES OF THE REGULAR MEETING OF THE AMES CITY COUNCIL CITY OF AMES, IOWA NOVEMBER 13, 2001 The Ames City Council met in regular session at 6:30 p.m. on the 13 day of November, 2001, inth the City Council Chambers in City Hall, 515 Clark Avenue, pursuant to law with Mayor Ted Tedesco presiding and the following Council members present: Campbell, Cross, Goodhue, Hoffman, Quirmbach, and Wirth. PRESENTATION OF CERTIFICATES OF APPRECIATION: Mayor Tedesco presented Certificates of Appreciation to Jan Beran in recognition of her work with the Dialogues discussion group and her efforts pertaining to the F.A.C.E.S. celebration. He also recognized Aiddy Phomvisay, in absentia, for his efforts to successfully coordinate the F.A.C.E.S. activities. Accepting the Certificate for Mr. Phomvisay was Elaine Dunn, Chairperson of the Human Relations Commission. Ms. Dunn presented Mayor Tedesco, on behalf of the City, a framed poster as a reminder of the successful F.A.C.E.S. celebration. PRESENTATION OF HUMAN RELATIONS COMMISSION ANNUAL REPORT: Elaine Dunn introduced Ken Smith and Jan Beran, members of the Commission who were present. Ms. Dunn presented the Commission’s Annual Report covering the period July 1, 2000, to June 30, 2001. She highlighted several of the Commission’s accomplishments throughout the last fiscal year and explained the long-range plans for the Commission. Ms. Dunn noted particularly that there were only four new complaints investigated during the last fiscal year. Jan Beran explained to the City Council how ISU students had been involved in the Dialogues groups. Moved by Cross, seconded by Wirth, to direct the Mayor to write letters formally commending City staff and Core Committee members involved in the F.A.C.E.S. celebration. Vote on Motion: 6-0. Motion declared carried unanimously. Council Member Quirmbach left the meeting. Moved by Hoffman, seconded by Goodhue, to adopt RESOLUTION NO. 01-492 approving request for waiver of auditorium fees for Martin Luther King Day celebration activities to occur in January 2002. Roll Call Vote: 5-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. Council Member Quirmbach returned to the meeting. PRESENTATION OF AMES 20/20 REPORT: Pat Brown presented the Ames 20/20 Report as has been or will be given to its sponsors and to the chairpersons of the committees of the four final initiatives. She explained that the four priorities were: Affordable Housing, with a component being the revitalization of neighborhoods; Economic Vitality; Sense of Place, with a more focused vision on what picture of Ames we want, and listing particularly, streetscapes; and Stewardship. Ms. Brown reviewed the recommendations for the prioritized areas. PROCLAMATION FOR NATIONAL ADOPTION MONTH: Mayor Tedesco proclaimed November 2001 as National Adoption Month. Bambi Schrader, F o ster C are 2 A do ption /R ecruitment and Licensing Specialist for Youth and Shelter Services (Y SS ), introd uced Gordon and Ann Woods and their children, Lizzie, Jacob, and Ethan, who accepted the proclamation on behalf of adoptive parents. CONSENT AGENDA: Moved by Goodhue, seconded by Wirth, to approve the following items on the Consent Agenda: 1 .Mo tion app ro ving payment of claims 2.M otion approving m inutes of regular m eeting of O ctober 23, 2001 3.M otion app rov ing renew al of the follow ing beer perm its and liqu or licenses: a.Class C B eer P erm it - Kw ik S ho p #55 0, 71 5 - 24 Streetth b.Class B Beer Perm it - Ruttles of A m es, 531 S. D uff A venue 4.M otion setting Conference Board meeting dates for January 22 and February 26, 2002 5 .M o tion app ro ving certification of civ il serv ice ap plican ts 6.Library B oo km ob ile: a.RE S O LU TIO N N O . 01-493 w aiving purchasing policy regarding disposal of surplus eq uipm ent b.RE S O LU T IO N N O . 01-4 94 approv ing contract w ith T he F lying M arsupials for sale of F leet ID #849 in the am ount of $3,500 7.Resolutions approving R eleases of Contract and Lien for properties located in the Bentw ood Subdivision in connection with the City’s Phase III Affordable Housing Program: a.RE S O LU T IO N N O . 01-4 95 pertaining to 542 2 N orris S treet b.RE S O LU T IO N N O . 01-4 96 pertaining to 541 7 N orris S treet c.RE S O LU T IO N N O . 01-4 97 pertaining to 542 9 N orris S treet d.RE S O LU T IO N N O . 01-4 98 pertaining to 542 3 N orris S treet e.RE S O LU T IO N N O . 01-4 99 pertaining to 540 8 S chubert Street 8.RE SO LU TIO N N O . 01-500 approving Release of Contract and Lien for property located at 1313 G arfield A venu e in co n nectio n w ith the C ity’s P hase IV M ortgag e B uy-D ow n A ff ord ab le H ou sing P rogram 9.RE S O LU T IO N N O . 01-5 01 accepting com pletion of 20 00 /01 A sphalt R esurfacing P rogram 10.RE SO LU TIO N N O . 01 -502 accepting com pletion of 2001/02 C yRide Route Reconstr uction P rogram 11.RE SO LU TIO N N O . 01-503 accepting completion of D em olition and D isposal of M aterial fr om O ld W ater Pollution Control Plant 12 .RE S O LU T IO N N O . 01-5 04 accepting com pletion of College C reek (E lw oo d P asture) P edestrian Bridge Roll Call Vote: 6-0. Resolutions declared adopted unanimously, signed by the Mayor, and hereby made a portion of these minutes. PUBLIC FORUM: No one came forward to speak. REQUEST FOR NEW CLASS C BEER AND CLASS B WINE PERMITS FOR MUTUAL AID FOOD ASSOCIATION, D/B/A WHEATSFIELD GROCERY: Moved by Cross, seconded by Hoffman, to approve the request for new Class C Beer and Class B Wine Permits for Mutual Aid Food Association, d/b/a/ Wheatsfield Grocery, 413 Douglas Avenue. Vote on Motion: 6-0. Motion declared carried unanimously. CRAWFORD ELEMENTARY ARTWORK: Nancy Polster, Chairperson of the Public Art Commission, showed photos of the artwork in question. She said that the Commission was recommending that this artwork be placed on the second floor corridor wall across from the 3 entrance to the “Giggles and Wiggles” room. Deb Cooper, representing the former Crawford PTO, was also present. Moved by Quirmbach, seconded by Goodhue, to approve the recommendation of the Public Art Commission to accept artwork (created dominantly from handmade paper pulp and encased in a large plexiglass box) from Crawford PTO for display in City Hall. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Cross, seconded by Wirth, to adopt RESOLUTION NO. 01-505 approving Agreement Between the City of Ames and the Crawford PTO Ad Hoc Art Committee with Respect to a Certain Artwork. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these minutes. RECOMMENDATION FROM PUBLIC ART COMMISSION TO ALLOCATE FUNDING FOR POETIC ARTS PROJECT: Nancy Polster explained that Professor Joni Palmer had approached the Commission seeking funding for her public art project. Ms. Polster said that the Commissioners were impressed with the project, but determined that this project was not eligible for support under The Commission on The Art’s (COTA) guidelines and restrictions. The Commission is proposing that funding support from the Art Donations Account would be appropriate inasmuch as these funds are an outgrowth of the Doug and Pat Brown gift. Moved by Cross, seconded by Wirth, to approve the recommendation of the Public Art Commission to allocate $280 from the Art Donations Account to purchase Professor Joni Palmer’s project, “Imagining This Land.” Vote on Motion: 6-0. Motion declared carried unanimously. REQUESTS FROM AMES MAIN STREET DISTRICT: Moved by Hoffman, seconded by Cross, to approve the request for the City to provide electricity for holiday lighting on downtown buildings from November 17 thru December 31, 2001. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Hoffman, seconded by Cross, to approve the request to suspend parking enforcement for the Central Business District all day on Saturdays and from 5-6:00 p.m. on Monday thru Friday from November 19 thru December 24, 2001. Vote on Motion: 6-0. Motion declared carried unanimously. REQUEST OF HILLSIDE SUBDIVISION RESIDENTS TO DELAY REMOVAL OF TREES IN COLLEGE CREEK: Director of Public Works Paul Wiegand explained that College Creek flows through the easterly edge of Hillside Subdivision in a platted drainage easement across 15 lots. He said that the first phases of construction in the development of Hillside Subdivision included grading and alignment changes to College Creek, and at the time the project was completed, there were no trees growing in the drainage easement area. Mr. Wiegand pointed out that these drainage easements were intended to allow the City the right to perform maintenance, such as tree removal, to keep the drainage channel bottom and slopes free from obstructions. He said that there are now volunteer trees growing in that area, and staff notified the residents that those trees were going to be removed. Affected owners have since signed a petition requesting that the volunteer trees remain for a period of four years and that the City 4 pay each affected owner $1,000 for replacement landscaping. Mr. Wiegand advised that the City prefers that the volunteer trees be removed after three years. Moved by Campbell, seconded by Goodhue, to approve the request of the 15 Hillside Subdivision property owners who signed the petition and including Joyce and David Durlam, 4512 Webster Street, to allow volunteer trees to remain in the drainage easement area until November 2004 and to authorize $1,000/owner as compensation for renegotiated easements; said easement negotiation and landscaping compensation to occur this fall and winter with funds from unobligated G.O. Bonds remaining unspent from the 2001/02 CyRide Route Project, Ridgewood Avenue (16 to 20th).th Vote on Motion: 6-0. Motion declared carried unanimously. HEARING ON GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993: Duane Pitcher, Finance Director, explained the two issues: General Obligation Refunding Bonds, Series 1993, and $1,310,000 Fire Station General Obligation Bonds. Wayne Burggraaf, Evensen Dodge, Inc., gave a recap of the bids that were received for the sale of the combined issue ($5,150,000 General Obligation Fire Station and Refunding Bonds). He stated that they were recommending awarding the sale of the bonds to Harris Trust & Savings Bank, which came in with an interest rate of 3.3523%. Mayor Tedesco opened the hearing. There being no one wishing to speak, he closed the hearing. The Mayor advised that Item #38, RESOLUTION PROVIDING FOR THE SALE AND ISSUANCE OF $1,310,000 FIRE STATION GENERAL OBLIGATION BONDS, would be dealt with along with this item. Moved by Goodhue, seconded by Campbell, to adopt RESOLUTION NO. 01-506 Combining Refunding Bonds and Fire Station Bonds and providing for the sale and issuance of General Obligation Fire Station and Refunding Bonds, Series 2001B, and for the levy of taxes to pay the same. Roll Call Vote: 5-0-1. Voting aye: Campbell, Goodhue, Hoffman, Quirmbach, Wirth. Voting nay: None. Abstaining: Cross. Resolution declared carried, signed by the Mayor, and hereby made a portion of these minutes. HEARING ON PROPOSED RELEASE OF JUDGMENT LIEN FOR LOT 32, BLOOMINGTON HEIGHTS PLAT 8: The hearing was opened by Mayor Tedesco. He closed same after no one wished to speak. Moved by Hoffman, seconded by Goodhue, to adopt RESOLUTION NO. 01-507 approving release of judgment lien arising from City of Ames vs. Regency Builders, Inc., and Regency Land Co., L.C. for Lot 32, Bloomington Heights Plat 8. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. HEARING ON ORDINANCE AMENDMENTS TO SUBURBAN RESIDENTIAL MEDIUM- DE NSI TY Z ON E R EG AR DI NG BA CK -T O -B A C K T OWN HOU SE U NI TS [PARTICULARLY SECTIONS 29.201(52) AND 29.1202]: Mayor Tedesco opened the public hearing. No one wished to speak, and he closed the hearing. 5 Moved by Cross, seconded by Campbell, to pass on first reading Zoning Ordinance amendments to Suburban Residential Medium-Density Zone regarding back-to-back townhouse units [particularly Sections 29.201(52) and 29.1202]. Roll Call Vote: 6-0. Motion declared carried unanimously. HEARING ON ELEVATED WATER TANK: The Mayor opened the public hearing and closed same after no one wished to speak. Moved by Hoffman, seconded by Goodhue, to adopt RESOLUTION NO. 01-508 approving final plans and specifications and awarding a contract to Chicago Bridge and Iron Constructors of Clive, Iowa, in the amount of $1,079,200. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. REPLACEMENT OF LOCKER ROOM HEATING/VENTILATION SYSTEM AT THE MUNICIPAL POOL: Moved by Goodhue, seconded by Wirth, to adopt RESOLUTION NO. 01- 509 authorizing the reallocation of $58,800 from FY 01/02 CIP savings and redirecting funds to be used to replace the locker room heating/ventilation system at the Municipal Pool. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. PRELIMINARY PLAT FOR LONGVIEW SUBDIVISION: Moved by Wirth, seconded by Hoffman, to adopt RESOLUTION NO. 01-510 approving the Preliminary Plat for Longview Subdivision, generally located north of Mortensen Road, south of the Hillside Subdivision, west of Dickinson, and east of the Ames City limits, with the following stipulations: 1.T hat Ph ases 2 an d 3 be rez on ed fro m RM to RL p rior to review of any F inal P lat fo r tho se two ph ase s b y the City C ou ncil. 2.The application to approve the Final Plat for Longview Subdivision m ust include the consent and required dedications from A m es Com m unity S ch ool D istrict since they are the ow ners of th e west 30 ' of Ou tlot T. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. PRELIMINARY PLAT FOR CAMERON PINES ESTATES SUBDIVISION: Moved by Goodhue, seconded by Campbell, to adopt RESOLUTION NO. 01-511 approving the Preliminary Plat for Cameron Pines Estates Subdivision generally located at the southeast corner of Cameron School Road and North Dakota Avenue, with the following stipulations: 1.T hat a “W aiver of R igh ts to A pp eal A ssessm ents A greem ent” be signed by the developer before the F ina l Plat is app ro ved by the C ity Co un cil. 2.T hat the d ev elop er p ro vide a 15 ' ease m en t alo ng the fro nt of fu ture lots p arallel to street right- of-w ay to prevent tree planting from interfering w ith any future infrastructure installation. 3.T hat the developer install full cut-off street lights, as required by the M un icipal Co de. 6 Council Member Quirmbach stated that he is particularly concerned with the usage of adequate septic tanks due to the fact that the property in question is in proximity to Squaw Creek. Brian O’Connell, Director of Planning and Housing, explained that it is a concern of the City that those types of systems are properly installed and maintained. He pointed out that the City Council had approved the request of the developers to waive the requirement for sidewalks, dry sanitary sewer, curb and gutter, streetlights, and street trees on June 12, 2001. Chuck Winkleblack, representing the developers, Hunziker & Furman, 105 S. 16th Street, Ames, advised that the Story County Sanitarian has to approve the wastewater system. He also explained that, normally, septic systems are inspected again only at the time of sale of the property; however, the developers have voluntarily requested that the septic system being installed for this Subdivision be inspected every other year, said costs to be borne by the developers. Moved by Campbell, seconded by Goodhue, to call for the question. Vote on Motion: 6-0. Motion declared carried unanimously. Roll Call Vote on Original Motion: 4-1-1. Voting aye: Campbell, Goodhue, Hoffman, Wirth. Voting nay: Quirmbach. Abstaining: Cross. Resolution declared carried, signed by the Mayor, and hereby made a portion of these minutes. Moved by Hoffman, seconded by Campbell, to direct the Mayor to send a letter to the Board of Supervisors thanking them for the work they have done thus far on setting standards for septic systems, encouraging them to move forward as quickly as possible, and asking what date they anticipate to have a policy in place. Vote on Motion: 6-0. Motion declared carried unanimously. REQUEST FOR WAIVER OF CITY’S RIGHT TO REVIEW PLATTING OF A 40-ACRE PLAT SOUTH OF AMES KNOWN AS THE FINCH-WALLACE AGRICULTURAL PLAT (27228 Timber Road): Moved by Goodhue, seconded by Campbell, to adopt RESOLUTION NO. 01-512 approving the waiver of the requirement for approval of a subdivision plat by the City of Ames for a 40-acre tract of land located within the two-mile jurisdiction area outside the City’s corporate limits at 27228 Timber Road. Steven Jordening, 517 J Avenue, Nevada, attorney for the applicants, was present. He asked for a clarification of the motion. Mayor Tedesco advised that the action being taken by the Council was to accept the Manager’s Recommended Action, as listed on the Council Action Form. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. NORTHRIDGE HEIGHTS, PLAT 2: Moved by Goodhue, seconded by Campbell, to adopt RESOLUTION NO. 01-513 approving the request for a waiver of the requirement that the balance of the land included in the preliminary phases be included in the Final Plat, predicated on the agreement from the developers that the next addition of Northridge Heights Subdivision will include all of the land that was included in the Preliminary Plat of Northridge Heights. 7 Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. Moved by Goodhue, seconded by Campbell, to adopt RESOLUTION NO. 01-514 approving the Amendment to the Agreement Pertaining to Rezoning, Subdivision Platting, and Development of Land for Uthe Development Co., LLC. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. Moved by Goodhue, seconded by Campbell, to adopt RESOLUTION NO. 01-515 approving the Final Plat. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. SOMERSET SUBDIVISION, 6 ADDITION: Moved by Wirth, seconded by Campbell, to setTH the date of hearing for November 27, 2001, on an ordinance to vacate an alley located between Aspen Road and Bristol Drive. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Hoffman, seconded by Campbell, to adopt RESOLUTION NO. 01-516 proposing the sale and conveyance by Quit Claim Deed of land pertaining to the vacated alley and setting date of public hearing for November 27, 2001. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. AIRPORT SELF-FUELING STANDARDS: Moved by Goodhue, seconded by Hoffman, to adopt RESOLUTION NO. 01-517 approving the amendment to Airport Self-Fueling Standards, adding the following paragraph: “The Permittee shall submit appropriate documentation with each month’s flowage fee remittance for the gallons of fuel purchased by the Permittee from the Fixed Base Operator, if any. Credit will then be given on the next month’s billing cycle for the amount of the previous month’s flowage fee paid on fuel purchased from the Fixed Base Operator;” said amendment to be effective December 1, 2001. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. EASTGATE SUBDIVISION STREET PAVING PROJECT: City Manager Steve Schainker explained that when the subdivision plat for Eastgate Subdivision was approved on October 26, 1999, the City entered into an “Improvement Agreement” with the developer, Eastgate Development, Inc., that street improvements would be completed on or before October 26, 2001. He explained that street improvement work has been done; however, the final “lift” of paving has not yet been installed; Eastgate Development, Inc., has been under the jurisdiction of the federal bankruptcy court since September 2000, and it is anticipated that the City would need to procure that work. Mr. Schainker said that it is appropriate for the City to insist on full performance of regulatory requirements since any concessions are frequently noted and asserted as City policy with respect to later developments. To guard against that, the staff recommends that no building permits for the start of any new construction in Eastgate Subdivision be issued until such time as the final lift of paving has been put in place without costs over the amount that is on deposit with the City. He feels that for the buildings now under 8 construction, Wolfe Eye Clinic and Freel Office Complex, completion and occupancy in accordance with City codes should not be impeded. Moved by Wirth, seconded by Goodhue, to direct that staff withhold permits for all lots except Wolfe Eye Clinic and Freel Office Complex (Lots 1, 2, and 3) until such time as the paving is completed at no additional cost to the City. Vote on Motion: 6-0. Motion declared carried unanimously. ORDINANCE ESTABLISHING PARKING PROHIBITIONS ON WHITE OAK DRIVE, SUNCREST DRIVE, AND SUNDOWN DRIVE: Moved by Goodhue, seconded by Wirth, to pass on first reading an ordinance establishing parking prohibitions on White Oak Drive, Suncrest Drive, and Sundown Drive. Roll Call Vote: 6-0. Motion declared carried unanimously. ORDINANCE ESTABLISHING EMERGENCY SNOW ROUTE DESIGNATIONS ALONG ASH AND LYNN AVENUES FOR THE NEW CYRIDE BUS ROUTE: Moved by Goodhue, seconded by Wirth, to pass on first reading an ordinance establishing emergency snow route designations along Ash and Lynn Avenues for the new CyRide bus route. Roll Call Vote: 6-0. Motion declared carried unanimously. Council Member Campbell requested that the Greek System be notified by the City that this Ordinance has been passed on first reading. ORDINANCE RELATING TO PRECINCT AND WARD BOUNDARIES AS A RESULT OF THE 2000 CENSUS: Moved by Cross, seconded by Wirth, to pass on first reading an ordinance relating to precinct and ward boundaries as a result of the 2000 Census. Roll Call Vote: 6-0. Motion declared carried unanimously. Moved by Goodhue, seconded by Hoffman, to suspend the rules necessary for the adoption of an ordinance. Roll Call Vote: 6-0. Motion declared carried unanimously. Moved by Cross, seconded by Goodhue, to pass on second and third readings and adopt ORDINANCE NO. 3637 relating to precinct and ward boundaries as a result of the 2000 Census. Roll Call Vote: 6-0. Ordinance declared adopted unanimously, signed by the Mayor, and hereby made a portion of these minutes. ORDINANCE REZONING PROPERTY GENERALLY LOCATED ON ADAMS STREET, SOUTH OF HALLETT’S QUARRY, AND EAST OF STONE BROOKE SUBDIVISION: Moved by Hoffman, seconded by Campbell, to pass on second reading an ordinance rezoning property generally located on Adams Street, south of Hallett’s Quarry, and east of Stone Brooke Subdivision from “A” (Agricultural) to “FS-RL” (Suburban Residential Low Density). Roll Call Vote: 6-0. Motion declared carried unanimously. COMPREHENSIVE ANNUAL FINANCIAL REPORT: Duane Pitcher gave a brief review of the Report. 9 Moved by Hoffman, seconded by Goodhue, to adopt RESOLUTION NO. 01-518 approving the Comprehensive Annual Financial Report for fiscal year ended June 30, 2001. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. CITY COUNCIL BUDGET GUIDELINES: Steve Schainker outlined the packet of information provided to the City Council on the 2002/03 budget issues. He summarized the Local Option Sales Tax Fund. Duane Pitcher explained that the state recently notified the City that they had overpaid and Ames would experience an additional reduction of $51,000. Mr. Pitcher explained that City staff had already reduced their forecast for FY 2001/02 and now expects a $483,167 shortfall from the adopted budget. He said that effect on the General Fund will be a reduction in revenue of $289,900 or 9.4% of budgeted local option revenue for property tax relief. Mr. Schainker stated that the City Council needs to provide specific direction on the preferred allocation plan for human service agencies and COTA. He advised that the current request for City of Ames’ funding from human service agencies reflects an increase of approximately 8.5%; the City provided a scenario providing for a 3.5% increase. Mr. Schainker pointed out that the City is leaving the Proposed 2002/03 Local Option Tax Remittance the same as it was in the Estimated 2001/02 due to the slowing economic conditions, both locally and nationally. Assistant to the City Manager Sheila Lundt advised that ASSET has completed their liaison visits and presented their liaison reports, completed their training, and following up on some of the information for which they had concerns. She advised that the total funding requests coming into ASSET have increased 10% due to anticipated cuts in state aid. Ms. Lundt stated that the County’s position is that they are not automatically going to absorb those cuts. She pointed out that ASSET guidelines will be reviewed at the Council’s meeting on November 27. Moved by Goodhue, seconded by Wirth, to provide a guideline to City Management of an increase of 3.5% to COTA. Vote on Motion: 6-0. Motion declared carried unanimously. Mr. Pitcher explained that forecasts continue to indicate reductions in Road Use Tax receipts. He said that based on recent information from the Iowa League of Cities, the City expects a shortfall of $351,000, or 8.9% in revenue for the current fiscal year. Mr. Pitcher advised that the City has approximately $1,130,000 in fund balance available to absorb the impact of reduced revenue for the current fiscal year; however, if this trend continues into FY 2003/04, the City may have to decrease service levels and capital improvements or increase our reliance on debt financing for street-related projects. Regarding State Revenue, Duane Pitcher explained that the state of Iowa has been applying a 4.3% across-the-board reduction in most programs, and it is likely that this reduced level of funding will continue in FY 2002/03. Pertaining to Interest Earnings, Mr. Pitcher pointed out that the forecasted effect on the General Fund is a reduction of $80,000 in interest earnings for FY 2002/03, and the Utility Funds will also have reductions in interest earnings that would have been used to help fund capital improvements. 10 Mr. Pitcher discussed the Department of Revenue and Finance Assessment Limitation Order (Rollback). He said that for FY 2002/03, 51.6676% of assessed residential value will be taxed, down from 56.2651% in FY 2001/02; commercial property will be reduced from 100% to 97.7701%; industrial property will continue to be taxed at 100% of assessed value. Regarding Debt Service, Mr. Pitcher pointed out that funding of the City’s capital improvement plan continues to require issuance of an average of $7 million of essential corporate purpose general obligation bonds annually, not including issues recently passed by referendum. With the addition of the referendum projects (Fire Station 3 and Hallett’s), it is likely that the debt service levy will be increased. Steve Schainker advised that with the hiring of our new Police Chief, it is an appropriate time to review the organizational structure of the Police Department to determine if changes are warranted to improve the services that are provided to our citizens. He said that various options are being explored that include reclassifications, the addition of new administrative positions, and the elimination of some existing supervisory positions. Duane Pitcher explained that early budget information reveals several increases in internal service charges and payroll benefit expenses. He covered health insurance rates, fleet charges, postage rate increases, Human Resources’ charges, and property and liability renewals. Mr. Schainker stated that for the first time in several years, inspection fees did not cover costs in FY 2000/01, and with reduced construction activity, this situation is expected to continue for the current fiscal year. City staff will be reviewing the fundamental basis for all inspection and permit fees. Steve Schainker told the Council that the financial condition of the Resource Recovery Utility has continued to deteriorate. He said preliminary budget estimates indicate that an increase in tipping fees of 10 to 15% ($5 to $7/ton) from our current rate of $45/ton will be required to return the system to a break-even operation. Mr. Schainker stated that the Council could also consider some combination of an increased per capita fee along with an increased tipping fee. Mr. Schainker said that they do not anticipate an increase in the storm water fee for FY 2002/03, but an increase may be needed in later years, depending upon unfunded federal mandates. Concerning the Electric Utility, Mr. Schainker advised the Council that they will need to address capacity needs, peak-load needs, and transmission needs in the near future. Mr. Pitcher informed the Council that City staff will be asking them to formalize various budget policies as part of the process of continuously improving the budget document. The County-Wide Affordable Housing Program was reviewed by Mr. Schainker. He pointed out that the participating parties’ commitments expire in June 2002. He said that because of budget restraints, the Story County Board of Supervisors has informed the participants that they cannot continue to provide funding for the administration of this program. Mr. Schainker presented a recommendation that would not require additional funds to be needed to cover the 11 administrative costs for this program. He also pointed out that since the City has surpassed 50,000 population, Ames may also become eligible to be designated as a CDBG Entitlement Community by the Department of Housing and Urban Development. He said that the City will need to set policy on allocation of these funds, which are anticipated to be received after the 2002/03 budget. Mr. Pitcher explained other budget implications associated with the City surpassing the 50,000-population level in the 2000 Census. Mr. Schainker pointed out that the Gateway pool continues to deteriorate; a recommendation from staff is forthcoming. COMMENTS: Moved by Goodhue, seconded by Campbell, to refer to staff the following: (1) letter from Russ McCullough, on behalf of Ev Cochrane and Associates, requesting that an easement at 208 Stanton be removed; letter from Kori Heuss, on behalf of Ames Main Street District, requesting that a budget for continuing the Downtown streetscape project on the side streets (Kellogg, Douglas, etc.) be added to the Capital Improvements Plan; letter from Dennis Pyle requesting that the City make the parking on Fifth Street between Allan Drive and the Pyle Office Park entry drive a two-hour parking area; and letter from Deb Sellers, representing Homeward, requesting that the Mid-Iowa Community Health Committee and Dental Task Force II be included on a Council agenda to explain their efforts to establish a free dental clinic. .Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Cross, seconded by Wirth, to refer to staff the letter from Kevin Cook, President of the Ames Convention & Visitors Bureau (ACVB), requesting a change in the Agreement for Joint and Cooperative Activity between the City and the ACVB. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Quirmbach, seconded by Cross, to refer to the Human Relations Commission the letter from Margaret (Yongzhu) Jiang, on behalf of the Falun Dafa Association in ISU. Vote on Motion: 6-0. Motion declared carried unanimously. Council Member Quirmbach acknowledged the tireless efforts of Erv Klaas, Kay Berger, and the “Friends of Hallett’s Quarry” towards the passage of the Hallett’s referendum. ADJOURNMENT: 9:45 p.m. ______________________________ Diane Voss, City Clerk Ted Tedesco, Mayor