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HomeMy WebLinkAboutA001 - June 9, 2026, Regular Meeting of the Ames City Council Extended Minutes1 MINUTES OF THE REGULAR MEETING OF THE AMES CITY COUNCIL AMES, IOWA JUNE 9, 2026 The Regular Meeting of the Ames City Council was called to order by Mayor John Haila at 6:03 p.m. on the 9th day of June, 2026, 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 Trey Anderson was also present. Council Member Gloria Betcher joined the meeting electronically. CONSENT AGENDA: Moved by Corrieri, seconded by Junck, to approve the Consent Agenda. 1. Motion approving payment of claims 2. Motion approving Report of Change Orders for period of May 16-31, 2026 3. Motion approving Summary of Minutes of the Regular City Council Meeting on May 26, 2026 4. Motion approving Civil Service Candidates 5. Motion approving Temporary Outdoor Service for Class C Retail Alcohol License with Outdoor Service - Della Viti, 323 Main Street Ste 102, June 5, 2026, through October 31, 2026 6. Motion approving Temporary Outdoor Service for Class C Retail Alcohol License - Sam's Place, 125 Main Street, May 31, 2026, through November 1, 2026 7. Motion approving Temporary Outdoor Service for Class C Retail Alcohol License with Catering Privilege and Outdoor Service - Cyclone Experience Network, 1800 S 4th Street (Jack Trice Stadium), July 17, 2026, through November 28, 2026 8. Motion approving Ownership Update for Class B Retail Alcohol License - Dollar General Store #22303, 4307 Lincoln Way 9. Motion approving new 5-Day (July 21-25, 2026) Special Class C Retail Alcohol License - Schonert's Patisserie LLC, 2202 North Loop Drive 10. Motion approving the renewal of the following Alcohol Licenses: a. Courtyard by Marriott Ames, 311 S 17th Street, Class C Retail Alcohol License with Catering Privilege and Outdoor Service b. Jethro's BBQ, 1301 Buckeye Avenue, Class C Retail Alcohol License with Catering Privilege c. Rinconcito Hispano Tienda Y Taqueria, 823 Wheeler Street Ste 1, Class C Retail Alcohol License with Catering Privilege d. Texas Roadhouse, 519 South Duff Avenue, Class C Retail Alcohol License with Catering Privilege 11. Motion approving request from Discover Ames for Fireworks Permit for display from ISU Parking Lot G10 East of Jack Trice Stadium at 10:00 p.m. on July 3, 2026, with a rain date of July 5, for Independence Day Celebration 12. Motion authorizing staff to participate and apply for the 2026 Iowa DNR Solid Waste Alternatives Program 13. RESOLUTION NO. 26-386 approving preliminary plans and specifications for the 2026/27 Airport Airside Improvements Project (Reconstruction of Runway 01/19), setting June 30, 2026, as the bid due date and July 14, 2026, as the date of Public 2 Hearing 14. RESOLUTION NO. 26-349 approving preliminary plans and specifications for the 2025/26 CDBG Water System Improvements (S 3rd Avenue - S Russell Avenue to S Oak Avenue) and (S Maple Avenue - S 2nd Avenue to S 4th Avenue) project, setting July 8, 2026, as the bid due date and July 14, 2026, as the date of Public Hearing 15. RESOLUTION NO. 26-350 accepting renewal quote of the City's membership in the Iowa Communities Assurance Pool (ICAP) in an amount not -to-exceed $868,462.35 16. RESOLUTION NO. 26-351 approving contract renewal with Iowa Association of Municipal Utilities (IAMU) for Safety Services Contract for the one-year period of July 1, 2026, through June 30, 2027, in an amount not-to-exceed $151,440 17. RESOLUTION NO. 26-352 approving contract renewal with Midwest Employers Casualty Company for Excess Workers' Compensation Insurance coverage for July 1, 2026, though June 30, 2027, in the renewal premium amount of $151,398 18. RESOLUTION NO. 26-353 approving contract renewal with Willis Towers Watson for property brokerage agreement for July 1, 2026, through June 30, 2027, in the amount of $57,750 19. RESOLUTION NO. 26-354 approving contract renewal with EMC Risk Services, LLC, of Des Moines, IA, to provide third party administration of the City’s Worker’s Compensation and Municipal Fire and Police “411 System” claims for July 1, 2026, through June 30, 2027, in an amount not -to-exceed $35,000 20. RESOLUTION NO. 26-355 approving contract renewal with Assured Partners for Liability Insurance Brokerage for July 1, 2026, through June 30, 2027, in the amount of $30,000 and the purchase of the crime bond for $4,154 21. RESOLUTION NO. 26-356 approving contract renewal with Willis of Greater Kansas, Inc., for Property Insurance Coverage for July 1, 2026, through June 30, 2027, in the amount of $974,083 22. RESOLUTION NO. 26-357 approving request to modify the City's FY 2025/26 ASSET contract with Primary Health Care 23. RESOLUTION NO. 26-358 approving request to modify the City's FY 2025/26 ASSET contract with Youth and Shelter Services 24. RESOLUTION NO. 26-359 approving contract renewal with MPW Industrial Water Services Inc., of Hebron, OH, for the Bottle Exchange Program and Related Services for Power Plant for July 1, 2026, through June 30, 2027, in an amount not-to-exceed $90,000 25. RESOLUTION NO. 26-360 approving contract renewal with Waldinger Corporation, of Des Moines, IA, for the Power Plant Maintenance Services Contract for July 1, 2026, through June 30, 2027, in an amount not -to-exceed $120,000 26. RESOLUTION NO. 26-361 approving contract renewal and bond for the Electric Distribution Line Clearance Program with Wright Tree Services, of Des Moines, IA, for July 1, 2026, through June 30, 2027, in an amount not-to-exceed $506,060 27. RESOLUTION NO. 26-362 approving Professional Services Agreement with Toole Design Group, LLC, of Silver Spring, MD, for creation of a Safe Routes to School Plan in an amount not to exceed $60,000 3 28. RESOLUTION NO. 26-363 approving Professional Services Agreement with Strand Associates, Inc., of Madison, WI, for the South Dayton Avenue Corridor Study in an amount not to exceed $120,000 29. RESOLUTION NO. 26-364 awarding contract to Cleanly of Ames, IA, for Custodial Services at City Hall for July 1, 2026, through June 30, 2027, in an amount not to exceed $81,800 30. RESOLUTION NO. 26-365 awarding contract to WESCO, of Des Moines, IA, for the purchase of 15kV cable for Electric Services in an amount not -to-exceed $298,485.06 31. RESOLUTION NO. 26-366 awarding contract to Carrier Access IT, LC, of Clive, IA, for Cisco Meraki software licensing and support in the amount of $121,148.55 over a 60-month term paid annually 32. RESOLUTION NO. 26-367 awarding a contract to Air Products and Chemicals, Inc. of Allentown, PA, for liquid carbon dioxide for the Water Treatment Plant in the amount of $156.00 per ton 33. RESOLUTION NO. 26-368 waiving the City's Purchasing Policy requirement for competitive bidding and awarding contract to Marshall County Landfill, of Marshalltown, IA, for landfill tipping fees for ash disposal for the Power Plant in the amount of $100,000 34. RESOLUTION NO. 26-369 approving contract and bond for the 13th and Grand Power Line Relocation Project with Commercial, Inc., of Holdrege, NE, in the amount of $527,595.56 35. RESOLUTION NO. 26-370 approving contract and bond for the 2025/26 Water System Improvements Program (Barr Drive, Douglas Avenue – 16th Street to O'Neil Drive, and 17th Street - Douglas Avenue to dead end) with Iowa Water & Waste Systems, of Boone, IA, in the amount of $881,271.90 36. RESOLUTION NO. 26-371 approving Change Order No. 9 with Woodruff Construction, of Ames, IA, for the Water Pollution Control Facility Nutrient Reduction Modifications Phase 1 Project in the amount of $81,379.80 37. RESOLUTION NO. 26-372 accepting completion of the Parks and Recreation Maintenance Facility Expansion Project by King Construction, of Iowa Falls, IA, in the amount of $1,365,319.61 38. 2019/24 Low Point Drainage Improvements: a. RESOLUTION NO. 26-373 approving Change Order No. 5 with Iowa Water & Waste Systems, LLC, of Boone, IA, for the 2019/24 Low Point Drainage Improvements project in the amount of $12,150 b. RESOLUTION NO. 26-374 accepting completion of the 2019/24 Low Point Drainage Improvements project by Iowa Water & Waste Systems, LLC, of Boone, IA, in the amount of $578,677.35 39. RESOLUTION NO. 26-375 accepting completion of the 2024/25 CDBG Infrastructure Program (S Russell Avenue - S 4th Street to Lincoln Way) project by Iowa Water & Waste Systems, LLC, of Boone, IA, in the amount of $513,561.95 40. RESOLUTION NO. 26-376 accepting completion of the 2023/24 Collector Street Pavement Improvements (6th Street) project by Con-Struct Inc., of Ames, IA, in the amount of $1,044,610.30 41. RESOLUTION NO. 26-377 accepting completion of the 2025/26 Alley Pavement 4 Improvement Program (Alley - South of Lincoln Way Between South Kellogg Ave and South Sherman Ave) project by Brother's Concrete, of Des Moines, IA, in the amount of $112,579.33 Roll Call Vote: 6-0. Motions/Resolutions declared carried/adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. PUBLIC FORUM: Mayor Haila opened and closed the Public Forum when no one came forward to speak. ANNEXATION SCHEDULE FOR THE AMES GOLF AND COUNTRY CLUB AND ADJACENT THE IRONS SUBDIVISION RESIDENTIAL PROPERTIES: Planning and Housing Director Kelly Diekmann presented a proposal to proceed with the annexation of The Irons Subdivision and the Ames Golf and Country Club. He explained that the City had accepted enough voluntary annexation applications to proceed under state law as an 80/20 annexation process, meaning at least 80 percent of the territory had consented and the remaining 20 percent may be assumed to establish logical boundaries. The City Council had previously directed staff to defer beginning the formal process until certain conditions were met. Staff indicated those conditions had been addressed and presented a proposed schedule to complete the annexation process in 2026. Mayor Haila asked if all the property owners had been notified. Director Diekmann reported that staff had not sent a physical mailing, but that an email had been sent to all contacts on an interested parties list that included about 50 email addresses. The Public Input was opened and closed by Mayor Haila when no one came forward to speak. Moved by Corrieri, seconded by Rollins, to approve Alternative No. 1: Direct staff to proceed with the annexation schedule as outlined in the Council Action Form. Vote on Motion: 6-0. Motion declared carried unanimously. DEVELOPMENT OUTLINE FOR THE BLUFFS: Director Diekmann provided an overview of the development outline for The Bluffs project, located at the corner of GW Carver Avenue and Cameron School Road. He explained that this project differed from others reviewed under the development incentive process initiated in December, primarily due to the evolving nature of the roadway improvement obligation. The City Council had previously awarded a Tax Increment Financing (TIF) rebate of up to $1,000,000 to the developer for road construction costs related to widening Cameron School Road and GW Carver Avenue and preparing for a traffic signal, while simultaneously directing staff to pursue an alternative roundabout design in par tnership with Story County. Due to the difference in costs that the developer would incur depending on which type of road improvement took place, Director Diekmann reported that the developer had subsequently requested two modifications: first, that the City assume responsibility for 5 managing the roadway project regardless of whether a roundabout or lane -widening approach was ultimately selected; and second, that the financial obligation be equalized between the two roadway options. Director Diekmann presented four alternatives addressing different structures for developer contribution and cost allocation. Alternative Nos. 1 and 2 would require a $200,000 developer contribution toward the roadway project, with Alternative No. 1 mandating the contribution upfront and Alternative No. 2 requiring the contribution only if there were cost overruns exceeding an agreed upon amount. Alternative No. 3 would split TIF utilization between the City and the developer, with a rebate provision for th e developer. Alternative Nos. 1, 2, and 3 all involved the City building the project, and varied only in the contribution of the developer. Alternative 4 would defer a final decision on cost allocation until preliminary engineering estimate s for the roundabout became available in July 2026. The developer had reviewed the alternatives and was in favor of Alternative No. 4. Council Member Gartin voiced concerns about the uncertainty in the process, acknowledging that the development schedule was effectively driving the City's decision timeline. Director Diekmann confirmed that a preliminary engineering report from the jointly hired design engineer was expected in July and would include a firm cost estimate for the roundabout. He noted that if the roundabout was ultimately not pursued, the project would revert to a lane-widening and traffic signal improvement but would remain the City’s responsibility under Alternatives 1, 2, or 3. Staff was supportive of Alternative 4, noting no harm in deferring 45 to 60 days for additional information, provided the City Council was comfortable proceeding with the final plat on the following agenda item. Mayor Haila opened the Public Input. Luke Jensen, developer of The Bluffs Subdivision, spoke in support of Alternative No. 4, noting that it would allow time to gather comprehensive cost and design information while continuing to move the project forward. Linda Murken, representative of Story County, sought clarification regarding the status of the roundabout engineering study. She requested confirmation that the joint engineering effort remained ongoing and that a decision on the roundabout versus a traffic signal configuration had not yet been made. The Public Input was closed by Mayor Haila when no one else came forward to speak. In response to the questions posed by Ms. Murken during Public Input, Director Diekmann confirmed that the City was still moving forward with the joint roundabout project with Story County, with a preliminary engineering report expected in July. However, if the City or County chose not to pursue the roundabout after the cost estimates were received, improvements would still be needed so the project would pivot to a road widening with an eventual installation of a traffic signal. 6 Council Member Gartin raised questions regarding the condition of approving the final plat without having finalized roadway improvement plans in place. Director Diekmann explained that the final plat typically included detailed improvements, but flexibility existed as the developer was obligated to perform those improvements. This action would ensure that security was in place to ensure obligations were met once the decision on the roadway configuration was finalized. Moved by Gartin, seconded by Corrieri, to approve Alternative No. 4: Indicate support for City construction of the roadway project, but defer direction to staff until after July 2026 when an engineer's estimate of costs for a roundabout is known. Vote on Motion: 6-0. Motion declared carried unanimously. MAJOR FINAL PLAT FOR THE BLUFFS SUBDIVISION LOCATED AT 3220 CAMERON SCHOOL ROAD: Director Diekmann presented the Major Final Plat for The Bluffs Subdivision, which encompassed approximately 20 acres at the corner of GW Carver Avenue and Cameron School Road and create d four buildable lots, three commercial lots north of Columbus Avenue and one medium -density lot (Lot 4) designated for an assisted living facility anticipated to be purchased by Dover Development. Director Diekmann addressed two waiver requests accompanying the Major Final Plat. The first waiver pertained to a secondary driveway access from Lot 4 onto GW Carver Avenue. The City Council had previously given preliminary approval, subject to details being finalized at the time of Major Final Plat approval. Since that time, traffic study findings confirmed that a driveway with a 50-foot turn pocket and associated tapers could be accommodated. The uncertainty existed in that it was still undetermined as to what type of road improvements would take place on GW Carver Avenue, and whether the additional driveway would tie into the future roundabout or the road widening. However, it was confirmed that the second driveway could be compatible with either style of roadway improvement. Director Diekmann suggested deferring the detailed design to a separate development agreement with Dover Development, to be finalized before issuing a building permit. This strategy would enable the City to synchronize the driveway improvement with the larger roadway project and to accept a cash-in-lieu payment from Dover Development if a unified construction approach was feasible. He indicated there was ample time for this process, as Dover Development did not plan to obtain a building permit until September, with a finalized development agreement expected by August. Director Diekmann also noted that the site plan had already been approved by the Zoning Board of Adjustment and a special use permit had been issued, granting the permission to build the facility. The second waiver addressed the financial security requirement. Under standard practice, full financial security for roadway improvements would be required prior to final plat approval. However, given that the City Council was directing the City to assume responsibility for the roadway project, staff recommended reducing the required letter of credit to $255,000, reflecting the security already on deposit to cover the nearly 7 completed internal street improvement of the Columbus Avenue extension. Director Diekmann clarified that the underlying obligation of the developer to construct roadway improvements would not be waived and that only the financial security amount would be modified. Mayor Haila inquired about whether there was adequate real estate to construct the proposed roundabout at the intersection. Director Diekmann confirmed that existing easements at the corner created unbuildable space sufficient to accommodate a roundabout without interfering with the development of adjacent lots. Mayor Haila further inquired about potential needs for additional land to facilitate the roundabout. Director Diekmann reported that discussions with KwikStar indicated an understanding that if a slight adjustment in the land was necessary for the roundabout, cooperation could be expected from the involved parties. Council Member Rollins sought confirmation that this modification was consistent with the waiver criteria under the subdivision regulations. Director Diekmann acknowledged the unusual nature of the waiver but expressed confidence that the purpose of the security requirement was still met, given that the roadway obligation was secured by agreement and the timing of improvements was sequential rather than concurrent. The Public Input was opened by Mayor Haila. Luke Jensen, developer of The Bluffs Subdivision, spoke in support of Alternative No. 2, reaffirming the commitment to continue development of both sides of the road and characterizing the road improvements as a regional safety benefit. Mayor Haila closed the Public Input when no one else came forward to speak. Moved by Gartin, seconded by Corrieri, to approve Alternative No. 2: Approve the Final Plat as requested by the developer with waivers and financial security with related agreements, and adopt: • RESOLUTION NO. 26-378 approving Waiver Request of Access Limitations for a Driveway Connection to GW Carver Avenue for Lot 4. • RESOLUTION NO. 26-379 approving Waiver Request of Full Financial Security Amount for Public Improvements for GW Carver Avenue and Cameron School Road and approving Public Improvement Agreement for Remaining Public Improvements. • RESOLUTION NO. 26-380 approving Final Plat. Roll Call Vote: 6-0. Resolutions declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. REQUEST FROM KWIK STAR TO AMEND THE CONVENIENCE GENERAL SERVICE (CGS) ZONING DISTRICT STANDARD RELATED TO THE MAXIMUM NUMBER OF FUELING POINTS AT CONVENIENCE STORES: Director Diekmann explained that Convenience General Service (CGS) zoning placed limits on fueling points at convenience stores near residential zones. Kwik Star was seeking a text amendment to 8 allow 20 fueling points at its proposed site on Lot 1 of The Bluffs, mirroring its Dayton Avenue location. Director Diekman outlined the options for the City Council. If the City Council Members believed that the larger fueling facility could raise compatibility issues, they could choose not to grant the request or require some compensating permit process or strategy. Conversely, if they determined that existing zoning standards would effectively mitigate potential issues linked to the increased number of fuel pumps, they could vote to approve the amendment request. The Public Input was opened and closed by Mayor Haila when no one came forward to speak. Director Diekmann displayed the location of the proposed Kwik Star site on Lot 1 of The Bluffs, noting that per the approved master plan, fueling positions must be located on the south side of the lot along Columbus Avenue, away from the adjacent single -family residential area approximately a half-block away. Moved by Beatty-Hansen, seconded by Corrieri, to approve Option No. 2: Eliminate the maximum limit of fueling points at convenience stores in CGS and create a Special Use Permit for review of convenience stores in CGS. Vote on Motion: 6-0. Motion declared carried unanimously. ELECTRIC ENERGY UPGRADE PROGRAM AND USDA RURAL ENERGY SAVINGS PROGRAM (RESP): Energy Services Coordinator Layne Fober, alongside Sustainability Coordinator Nolan Sagan and Assistant Director of Electric Services Curtis Spence, presented a staff report on the Electric Energy Upgrade Program and the USDA Rural Energy Savings Program (RESP). Staff reported that the City's RESP loan application, submitted in fall 2025, was successful, resulting in an offer of $7,600,000 at zero percent interest. The program was designed to help Ames Electric utility customers reduce emissions, save money on energy costs, and support the goals of the City 's Climate Action Plan, specifically regarding building retrofits. The initial focus of the program would be end-of-life HVAC replacement through heat pump installations, estimated at approximately $12,000 per project. A 10 -project pilot was planned for the first year, with a target of approximately 80 projects per year thereafter. Customer repayment would be attached to the utility meter at an expected interest rate of .5 percent or less over a term of up to 15 years. Eligibility requirements included being a residential customer of Ames Electric and being in good standing with the utility, meaning no missed payments. The program would be administered by a third- party operator. Coordinator Fober outlined the expected timeline for the project. In fall 2026, the final loan documents would be presented to the City Council for an official decision on whether to proceed with the program. Following approval, a Request for Proposals (RFP) would be issued to secure a program operator, while a network of contractors was established 9 and all program documentation was finalized. The program was anticipated to launch in 2027. Throughout this timeframe, ongoing efforts would be made to continuously market the program and manage its execution. This would involve collaboration between the Electric Department, Finance Department, Utilities Customer Service, and City Manager's Office. Council Member Gartin inquired about the anticipated amount of average draw from the loan. Coordinator Sagan explained that the target would be roughly $1,000,000 to $1,500,000 per year in capital investment. The draw amount was flexible, depending on the number of completed projects and the types of upgrades undertaken, such as larger whole home retrofits or solar projects. Council Member Gartin inquired about how new buyers would be made aware of the obligation. Coordinator Sagan described a multi-layered notification approach including filing with the County Recorder's Office, creating a publicly accessible GIS database linked to the Beacon Property Registry, placing physical stickers on equipment, requiring voluntary seller disclosure in development agreements, and engaging with the local real estate community. Council Member Gartin acknowledged the thoughtfulness of the approach while noting the City's historical challenges in notifying buyers of similar obligations. Council Member Gartin raised the question of whether income qualification criteria should be considered, given that low-interest financing could be particularly impactful for lower-income households. During discussion, Coordinator Sagan noted that adding income qualifications would complicate program operations and potentially increase administrative costs, and that available capital should be sufficient to serve customers across income levels. In response to additional questions, staff also confirmed that liability for equipment failure would rest with the contractor and that extended warranties would be required. STEVEN L. SCHAINKER PLAZA UPDATE: Director of Parks and Recreation Keith Abraham, alongside Assistant City Manager Pa Vang Goldbeck, provided an update on the Steven L. Schainker Plaza. Director Abraham reported two issues that had been identified during a May 26 walkthrough with the contractor: damaged pavement near the food truck area and bicycle concrete pads that were not constructed to specification s. Both items would be corrected at the contractor's cost during the upcoming ice ribbon removal and replacement work. Regarding the spray pad, Director Abraham reported that all items cited by the state inspector had been corrected, including the pump interlock, recirculation rate, and piping labeling. A reinspection was scheduled for the following day, and Director Abraham expressed confidence that the license would be granted upon reinspection. Director Abraham reported that the Plaza was anticipated to open to the public on June 15, 2026, with the exception of the ice ribbon area. The contractor had submitted a 10 schedule for ice ribbon removal beginning September 1, with completion expected by November 13, 2026. Mayor Haila inquired whether the architect had completed previously deferred inspections of the roof and exterior mechanical enclosure. Director Abraham indicated he would follow up with the contractor at a scheduled meeting regarding these items the following day. Council Member Gartin relayed a message regarding Fitch Family Indoor Aquatic Center (FFIAC) to Director Abraham. He shared positive feedback from a 4-year-old visitor who had recently visited FFIAC for the first time. GENERAL OBLIGATION SOLID WASTE DISPOSAL BOND ANTICIPATION NOTE, SERIES 2026A: Finance Director Corey Goodenow presented a report on the results of the bond anticipation note (BAN) bidding process. The best bid received was from JPMorgan at 3.68 percent, which staff and the City's financial adviser determined was not favorable. Director Goodenow recommended proceeding instead with a traditional bond offering in September 2026 as part of the City's annual Capital Improvement Program financing. Council Member Gartin inquired if Director Goodenow had previous experience utilizing this type of process. Director Goodenow responded that he did not but noted that this borrowing method was commonly used by school districts, and that the financial adviser had recommended this process as an alternate financing method. Council Member Gartin inquired further about the process and whether the pool of bidders could be expanded in future attempts. Director Goodenow indicated that all Ames-area financial institutions were contacted, and that the financial adviser’s review of comparable recent transactions suggested market rates would not have produced the targeted spread regardless of whether or not the pool was expanded beyond the Ames area . Director Goodenow expressed openness to attempting the BAN structure again in a different context if the scenario warranted it. Mayor Haila inquired about the anticipated interest rate for a traditional General Obligation Bond issuance, which Director Goodenow estimated to be around 4.0 percent. Moved by Corrieri, seconded by Rollins, to approve Alternative No. 1. This motion was made in error and subsequently withdrawn. Moved by Corrieri, seconded by Rollins, to approve Alternative No. 3: Do not approve the resolution and provide additional direction regarding the financing and funding strategy for the Resource Recovery & Recycling Campus (R3C). Vote on Motion: 6-0. Motion declared carried unanimously. HEARING ON 2025/26 ASPHALT STREET PAVEMENT IMPROVEMENTS (HILLCREST AVE, ELLIS ST, KENTUCKY AVE, ILLINOIS AVE, INDIANA AVE, OKLAHOMA DR, AND DELAWARE AVE) PROJECT: Public Works Director Justin Clausen presented the bid results for the 2025/26 Asphalt Street Pavement 11 Improvements project. He reported that bids came in higher than the anticipated project budget, driven primarily by utility costs, particularly storm sewer work, that had significantly exceeded the engineer's estimate. Director Clausen noted that this was the first project in approximately a year to exceed budget and attributed the overrun to a combination of evolving market conditions and the need to reassess the scope of utility improvements, including opportunities to rehabilitate rather than re place infrastructure where possible. Staff recommended that the City Council accept the report of bids, reject all bids, and direct staff to redesign the project to align with available revenue before rebidding. Council Member Beatty-Hansen inquired about an email that had been received regarding the project, to which Director Clausen explained that a bidder had expressed an interest in having the project awarded and then working together to reduce costs post - award. However, he clarified that changing the project too significantly post -award could contradict Iowa legal requirements for public bidding thresholds, and thus recommended rejecting the current bids, redesigning, and rebidding to better align with budgeta ry constraints. In response to questions from Mayor Haila regarding the timeline of the project, Director Clausen reported that some streets could still be constructed within the current construction season, while others may need to be carried into the following year's paving program. In response to additional questions from Mayor Haila regarding the utility costs, Director Clausen explained that utility costs, especially storm sewer work, had contributed to the higher than anticipated bids. He elaborated on strategies to mitigate this, such as reassessing which utility sections needed replacement versus rehabilitation, potentially moving some street improvements into the following year’s paving program and seeking to realign project scope with available funding while maintaining construction quality. Mayor Haila asked if the contractor had indicated whether or not it received competitive bids for the subcontractor work, particularly for the storm sewer work. Director Clausen reported that the contractor had received five bids and that the bids were higher than they had anticipated as well. Council Member Gartin questioned whether the issue was the scope of the work or if the engineer's estimate was low. Director Clausen explained that it was a combination of both, noting that historic costs were used for estimates, but the bids came in higher. He highlighted the need to reassess both the scope and costs to align with current market conditions. Council Member Gartin expressed concern about the broader trend of rising utility costs and urged that any redesign maintain the quality of construction rather than allow infrastructure maintenance standards to decline. He emphasized that if conscious decisions were made to defer or reduce the scope of work, that conversation s should occur at the City Council level. 12 Mayor Haila opened and closed the Public Hearing when no one came forward to speak. Moved by Rollins, seconded by Gartin, to accept the report of bids. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Corrieri, seconded by Junck, to reject all bids and direct staff not to award a contract. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Rollins, seconded by Junck, to direct staff to make modifications to the project to align project expenses with budgeted revenue and bring the revised project back to the City Council at a later date. Vote on Motion: 6-0. Motion declared carried unanimously. HEARING ON MAJOR SITE DEVELOPMENT PLAN AMENDMENT (LES SCHWAB TIRE CENTER) TO AN INTEGRATED SITE PLAN SUBDIVISION FOR 1410 BUCKEYE AVENUE: Director Diekmann presented a request to amend the site development plan for the former car wash site at 1410 Buckeye Avenue, located within the former K-Mart shopping center redevelopment area, to accommodate a Les Schwab Tire Center. Director Diekmann noted the property stood independently from the adjacent shopping center and that all landscaping, parking, and stormwater requirements were met on-site. The proposed concrete tilt-up building incorporated metal canopy elements and windows along the Duff Avenue frontage. Staff determined the design to be compatible with the surrounding shopping center development and was recommending approval. The Public Hearing was opened and closed when no one came forward to speak. Moved by Rollins, seconded by Gartin, to approve Alternative No. 1 and adopt RESOLUTION NO. 26-382 approving Major Site Development Plan amendment. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. HEARING ON PROPOSED ZONING TEXT AMENDMENT FOR ACCESSORY DWELLING UNITS: Director Diekmann presented proposed amendments to the Accessory Dwelling Unit (ADU) zoning text, most of which were required to bring the City's ordinance into compliance with recent changes in state law. Two locally initiated companion amendments were also included. The first was a clarification of how building height was measured relative to setback requirements for ADUs on lots with single - and two-story primary structures. The second was a provision restoring limited discretionary flexibility via the 20 percent rule for side and rear setbacks and lot coverage on smaller lots. Director Diekmann noted that despite significant outreach during the original ADU adoption process, including surveys in which dozens of respondents expressed strong 13 interest in building an ADU within one to three years, no ADU permits had yet been submitted to the City. Mayor Haila opened and closed the Public Hearing when no one came forward to speak. Council Member Betcher offered an amendment to the proposed ordinance text to clarify an internal inconsistency in Section 29.409(0.2)(a), wherein the introductory phrase "an ADU may be" was followed by a list item stating "no ADU may be." The amendment restructured the list to clearly state that an ADU may be attached, may be detached, may be located in certain configurations, and may not be established within an existing single - family residence. Moved by Betcher, seconded by Gartin, to direct staff to make an amendment to Code Section 29.409.(2).(a). to correct a problematic non-parallel list in the location section to read as follows: 2. Independent Dwelling Unit. a) Location. An ADU: i. May be attached to the single-family residence. ii. May be detached from the single-family residence in a free-standing structure. iii. May be located within a converted, existing accessory structure, so long as the structure complies with all ADU requirements, including setbacks. iv. May not be established within an existing single-family residence. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Gartin, seconded by Betcher, to pass on first reading an ordinance regarding a zoning text amendment for accessory dwelling units, as amended. Roll Call Vote: 6-0. Motion declared carried unanimously. Director Diekmann noted that second and third readings would be requested at the next regular meeting in order to ensure publication prior to the July 1, 2026, effective date of the new state law. Council Member Gartin inquired how the City could further promote ADUs, suggesting the possibility of hosting a public open house or informational session to boost awareness about the program and new state law changes. Director Diekmann expressed support for the idea, indicating that such an initiative could occur in the fall or winter once summer staffing constraints eased, and suggested incorporating it into the upcoming work plan. He also noted that the major complaint when the ADU policy was first adopt ed was the parking requirement, which had since been removed by state law. HEARING ON 2026/27 AIRPORT ENTRYWAY IMPROVEMENTS (SOUTH PARKING LOT EXPANSION): Director Clausen reported that bids for the 2026/27 Airport Entryway Improvements (South Parking Lot Expansion) project were favorable. He explained that as a Federal Aviation Administration (FFA)-funded project, the process required bid prices to be established before a grant application could be submitted. The FAA had been kept 14 apprised of the project. Staff was recommending the City Council accept the bids, approve the final plans and specifications, award a contract to Absolute Group, of Granger, Iowa. The Public Hearing was opened and closed by Mayor Haila when no one came forward to speak. Moved by Rollins, seconded by Beatty-Hansen, to accept the report of bids and adopt RESOLUTION NO. 26-383 approving the final plans and specifications for the 2026/27 Airport Entryway Improvements (South Parking Lot Expansion) project and awarding a contract for the Base Bid and Alternate Bid A to Absolute Group , of Granger, IA, in the amount of $373,970.75 contingent upon receipt of a Federal Grant. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. HEARING ON NUISANCE ASSESSMENT: The Public Hearing was opened and closed by Mayor Haila when no one came forward to speak. Moved by Gartin, seconded by Rollins, to adopt RESOLUTION NO. 26-384 assessing cost of tree removal at 624 Duff Avenue and certifying assessment to Story County Treasurer. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. HEARING ON PROPOSITION OF ENTERING INTO PRAIRIEVIEW INDUSTRIAL SUBSTATION LINE TAP CONSTRUCTION AGREEMENT AND A TRANSMISSION FACILITY JOINT OWNERSHIP AGREEMENT BETWEEN ITC MIDWEST, LLC AND ENTERING INTO A TRANSMISSION INTERCONNECTION AGREEMENT BY AND AMONG ITC MIDWEST, LLC, THE CITY OF AMES AND MIDCONTINENT INDEPENDENT SYSTEM OPERATOR (CONTINUED FROM MAY 26, 2026): Mayor Haila opened and closed the Public Hearing when no one came forward to speak. City Manager Steve Schainker reported that staff had been negotiating with ITC Midwest regarding interconnection and substation ownership agreements for a new facility at the Prairie View Industrial Park. While progress had been made, ITC Midwest indicated that further delays would jeopardize its steel procurement timeline, which was critical to the project schedule. As a result, staff determined it appropriate to withdraw from active negotiations at this time. SECOND READING OF AN ORDINANCE REGARDING PROPERTY REZONING FOR 3329, 3312, 3699 EAST 13TH STREET AND 1699 570TH AVENUE FROM "PRC" (PLANNED REGIONAL COMMERCIAL) WITH "O-GNE" (NORTHEAST GATEWAY OVERLAY) TO ONLY "PRC" (PLANNED REGIONAL COMMERCIAL) WITH "O-GNE" (NORTHEAST GATEWAY OVERLAY) THEREBY REMOVING THE CONTRACT ZONING AGREEMENT: Moved by Rollins, seconded by Corrieri, to pass on second reading an ordinance regarding property rezoning for 3329, 3312, 3699 East 13th street and 1699 570th Avenue from "PRC" (Planned Regional Commercial) with "O-GNE" (Northeast Gateway Overlay) to only "PRC" (Planned Regional Commercial) with "O- 15 GNE" (Northeast Gateway Overlay), thereby removing the contract zoning agreement. Roll Call Vote: 6-0. Motion declared carried unanimously. SECOND READING OF AN ORDINANCE REZONING THE PARCEL AT 5120 TABOR DRIVE FROM "A" (AGRICULTURAL) AND "FS-RL" (FLOATING SUBURBAN- RESIDENTIAL LOW DENSITY) TO "FS-RL" (FLOATING SUBURBAN-RESIDENTIAL LOW DENSITY) WITH MASTER PLAN: Moved by Betcher, seconded by Rollins, to pass on second reading an ordinance rezoning the parcel at 5120 Tabor Drive from "A" (Agricultural) and "FS-RL" (Floating Suburban-Residential Low Density) to "FS-RL" (Floating Suburban-Residential Low Density) with Master Plan. Roll Call Vote: 6-0. Motion declared carried unanimously. DISPOSITION OF COMMUNICATIONS TO COUNCIL: Mayor Haila noted that there were four items for consideration. The first item was regarding a Stange Road improvement plan from Joel Buehler. Moved by Beatty-Hansen, seconded by Rollins, to respond to the requestor and thank them for their input. Vote on Motion: 6-0. Motion declared carried unanimously. A request regarding the plans for the shared-use path on Grand Avenue at 5th Street from Victoria Blumen was the second item. Moved by Beatty-Hansen, seconded by Junck, to refer the item to staff for a memo. Vote on Motion: 6-0. Motion declared carried unanimously. The third item was regarding the project at 608 Burnett Avenue from Kate Gregory. Moved by Beatty-Hansen, seconded by Junck, to respond to the requestor and thank them for their input. Vote on Motion: 6-0. Motion declared carried unanimously. A memo from Director Diekmann regarding a request to change to an Employment Land Use designation from Commercial for 300 Airport Road was the final item. Moved by Rollins, seconded by Junck, to place the item on a future agenda. Vote on Motion: 6-0. Motion declared carried unanimously. REPORT OF GOVERNING BODY: Council Member Rollins reported that Ames Regional Economic Alliance had held a meeting the prior week, at which Summit Carbon Solutions presented. The organization currently had 27 Iowa partners and was anticipating favorable developments. COUNCIL COMMENTS: Council Member Gartin offered two acknowledgments. He commended City staff who handled public-facing communications during the rollout of the curbside recycling program, noting that staff received considerable pushback and 16 responded with professionalism and grace. He also expressed enthusiasm for Fitch Family Indoor Aquatic Center, relaying positive feedback from community members during his visit. Council Member Rollins reminded the public of the Juneteenth celebration hosted by Ames and Story County, scheduled for Saturday, June 13, from 12:30 to 5:00 p.m. at Bandshell Park. Council Member Junck emphasized the importance of understanding the potential impacts of the new state tax law on the City's abatement programs and TIF. Moved by Junck, seconded by Betcher, to request a memo from staff regarding how abatement programs and TIF work with the new state tax laws and what, if any, suggestions staff might have for changes. Vote on Motion: 6-0. Motion declared carried unanimously. Council Member Betcher reported on a recent trip to the International Town and Gown Association (ITGA) Conference in May, noting that she presented on the Area Social Services Evaluation Team (ASSET). She indicated that approximately seven representatives from Ames attended, and that the delegation was exploring a bid to host the ITGA conference in 2028 or 2029. Mayor Haila announced Council Night at the Bandshell, scheduled for Thursday, June 11, with the event beginning at 6:30 p.m. and the concert starting at 8:00 p.m. Mayor Haila also noted that the next Neighborhood Connections Road Trip event was scheduled for the following Wednesday, June 17, from 4:00 to 6:00 p.m. at Kate Mitchell Elementary School. CLOSED SESSION: Mayor Haila asked City Attorney Mark Lambert if there was legal reason to go into Closed Session. Attorney Lambert replied in the affirmative, citing Iowa Code Section 20.17(3), to discuss collective bargaining strategy. Moved by Junck, seconded by Corrieri, to go into Closed Session at 7:41 p.m. Roll Call Vote: 6-0. Motion declared carried unanimously. Ex officio Anderson exited the meeting at 7:41 p.m. The City Council reconvened Regular Session at 7:52 p.m. Moved by Corrieri, seconded by Rollins, to adopt RESOLUTION NO. 26-385 ratifying collective bargaining agreement with International Association of Firefighters Local 625. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor , and hereby made a portion of these Minutes. ADJOURNMENT: Moved by Corrieri, seconded by Junck, to adjourn the meeting at 7:52 p.m. 17 Vote on Motion: 6-0. Motion declared carried unanimously. ______________________________ ______________________________ Taylor Swanson, Deputy City Clerk John A. Haila, Mayor ______________________________ Renee Hall, City Clerk