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HomeMy WebLinkAboutA001 - July 28, 2026, Regular Meeting of the Ames City Council Extended Minutes1 MINUTES OF THE REGULAR MEETING OF THE AMES CITY COUNCIL AMES, IOWA JULY 28, 2026 The Regular Meeting of the Ames City Council was called to order by Mayor John Haila at 5:59 p.m. on the 28th day of July, 2026, in the City Council Chambers in City Hall, 515 Clark Avenue, pursuant to law. Present were Council Members Bronwyn Beatty- Hansen, Gloria Betcher, Tim Gartin, Rachel Junck, and Anita Rollins. Council Member Amber Corrieri joined the meeting electronically. Ex officio Trey Anderson was absent. CHILDCARE FEASIBILITY STUDY PRESENTATION: Story County United Way Community Impact Director Sarah Mansell presented an update on the childcare feasibility study. The study, covering November to March 2026, included three phases. Phase 1 assessed childcare supply, workforce, and affordability, revealing 5,360 children ages 0 to 5 in Story County but only 4,130 available childcare spaces. Phase 2 engaged over 1,200 community members via survey, showing that 44% of 500 parents waited 3 to 6 months for childcare, and 21% up to a year. It was found that workforce issues and retention were major hurdles for providers. Phase 3 suggested a leadership collaborative to combat workforce shortages and challenges for middle-income families. The study's full 60-page report was available on the Story County United Way Website. Council Member Gartin asked whether the numbers presented showed a trend over time. Ms. Mansell acknowledged that Story County had consistently lacked sufficient childcare spaces for many years and that without intentional action to draw more people into the workforce, the situation would not change. She noted that she did not have a specific trend line but confirmed this was an ongoing challenge, not only in Story County, but statewide and nationwide. Council Member Gartin followed up by asking whether best practices had been identified for a community the size of Ames. Ms. Mansell indicated that much of the existing research covered larger cities, counties, or statewide models, and that she was looking forward to speaking with representatives in Johnson County regarding the University of Iowa’s approach. CONSENT AGENDA: Mayor Haila requested to pull Item No. 10, noting that staff had requested that no action be taken on the item. Council Member Rollins requested to pull Item No. 15. Moved by Betcher, seconded by Gartin, to approve the Consent Agenda less Item Nos. 10 and 15. 2. Motion approving payment of claims 3. Motion approving Report of Change Orders for period of July 1-15, 2026 4. Motion approving Summary of Minutes of the Regular City Council Meeting on July 14, 2026, and Minutes of the Special City Council Meeting on July 21, 2026 5. Motion approving Minutes of Civil Service Commission Meeting on July 23, 2026 2 6. Motion approving new Class B Retail Alcohol License - Hy-Vee Ames Pop Up Shop, 1472 South 4th Street 7. Motion approving Temporary Outdoor Service for Class C Alcohol License with Outdoor Service - Sips and Paddy’s, 126 Welch Avenue on: a. September 24 - September 27, 2026 b. October 1 - October 4, 2026 8. Motion approving the renewal of the following Alcohol Licenses: a. Fareway Meat Market 189, 3720 Lincoln Way, Class E Retail Alcohol License b. Hickory Park, 1404 S Duff Avenue, Special Class C Retail Alcohol License c. HuHot Mongolian Grill, 703 S Duff Avenue Ste 105 , Special Class C Retail Alcohol License d. Inside Golf, 2801 Grand Avenue Ste 1075, Class C Retail Alcohol License with Catering Privilege, Pending Dramshop Review e. Sweet Caroline’s, 316 Main Street, Class C Retail Alcohol License with Catering Privilege and Outdoor Service, Pending Dramshop Review f. Maverik #5299, 4506 Lincoln Way, Class E Retail Alcohol License 9. Motion accepting Fiscal Year 2025/26 Fourth Quarter Financial Report 10. Motion authorizing the Mayor to sign a Certificate of Consistency with the 2024 - 2028 City of Ames CDBG Consolidated Plan on behalf of YSS for renewal funding of a Rapid ReHousing Program 11. Requests for EcoFair on Saturday, October 17, 2026: a. Motion approving blanket Temporary Obstruction Permit b. Motion approving blanket Vending License c. RESOLUTION NO. 26-460 approving closure of the south half of Lot M including 6 metered spaces, Lot MM, Lot N including 8 metered spaces, 33 metered spaces along 5th Street, and 11 metered spaces along Clark Avenue from 7:00 a.m. - 2:00 p.m. on Saturday, October 17, 2026 d. RESOLUTION NO. 26-461 approving waiver of Vending License fee e. RESOLUTION NO. 26-462 approving waiver of parking meter fees 12. Request from City of Kelley to withdraw from Resource Recovery System 28E Intergovernmental Agreement a. RESOLUTION NO. 26-463 approving amendment terminating the 28E Intergovernmental Agreement as of August 31, 2026 13. Request from City of Slater to withdraw from Resource Recovery System 28E Intergovernmental Agreement a. RESOLUTION NO. 26-464 approving amendment terminating the 28E Intergovernmental Agreement as of July 1, 2026 14. Request from City of Zearing to withdraw from Resource Recovery System 28E Intergovernmental Agreement a. RESOLUTION NO. 26-465 approving amendment terminating the 28E Intergovernmental Agreement as of August 31, 2026 15. Resolution accepting the 2026 City Boards and Commission Survey Results 16. RESOLUTION NO. 26-467 approving preliminary plans and specifications for the 2025/26 Asphalt Street Pavement Improvements (Hillcrest Ave, Ellis St, 3 Kentucky Ave, Illinois Ave, Indiana Ave, Oklahoma Dr, and Delaware Ave) project, setting August 19, 2026, as the bid due date and August 25, 2026, as the date of Public Hearing 17. RESOLUTION NO. 26-468 approving contract renewal with Tyler Technologies, of Dallas, TX, for Permitting Software Agreement for July 1, 2026, through June 30, 2027, in the amount of $50,154.61 18. RESOLUTION NO. 26-469 approving the water monitoring services agreement for FY 2026/27 water quality monitoring with Prairie Rivers of Iowa, of Ames, IA, in the amount of $59,000 19. Contracts for the purchase of cable and wire for Electric Services: a. RESOLUTION NO. 26-470 awarding contract to RESCO, of Elkhart, IA, for cable, in an amount not-to-exceed $92,555, inclusive of all applicable sales taxes b. RESOLUTION NO. 26-471 awarding contract to WESCO, of Des Moines, IA, for wire, in an amount not-to-exceed $18,821.30, inclusive of all applicable sales taxes 20. RESOLUTION NO. 26-472 awarding contract to Stivers Ford Lincoln, of Waukee, IA, for two one-ton 4WD dual rear wheel crew cab chassis for Electric Services in the amount of $110,178 21. RESOLUTION NO. 26-473 approving Change Order No. 1 to Van Maanen Electric, Inc., of Newton, IA, for 2020/21 & 2021/22 Intelligent Transportation System Program (Phases 1 and 2) 22. RESOLUTION NO. 26-474 approving Change Order No. 6 to All Star Concrete LLC, of Johnston, IA, Bid Package, 03 -1 Building Concrete Work for Paint Touch-Ups after the removal of concrete splatters on the precast panels for the Fitch Family Indoor Aquatic Center in the deduct amount of $2,058 23. Fitch Family Indoor Aquatic Center: a. RESOLUTION NO. 26-475 accepting completion of the contract for bid package 04-1 Unit Masonry Work with Forrest & Associate, Inc., of Des Moines, IA, for the Fitch Family Indoor Aquatic Center, in the amount of $85,432 b. RESOLUTION NO. 26-476 accepting completion of the contract for bid package 06-1 General Carpentry Work with Lansink Construction, Inc., of Johnston, IA, for the Fitch Family Indoor Aquatic Center in the amount of $1,130,962 c. RESOLUTION NO. 26-477 accepting completion of the contract for bid package 08-1 Entrance, Storefront, Curtainwall & Glazing Work with Orning Glass Company, of Ames, IA, for the Fitch Family Indoor Aquatic Center in the amount of $744,283 d. RESOLUTION NO. 26-478 accepting completion of the contract for bid package 09-1 Gypsum Board Assembly, Acoustical Ceiling, Paint & Ceiling Work with Hilsabeck Schacht, Inc., of West Des Moines, IA , for the Fitch Family Indoor Aquatic Center in the amount of $544,100 e. RESOLUTION NO. 26-479 accepting completion of the contract for bid package 13-1 Swimming Pool Work with Sande Construction & Supply Co., of Humboldt, IA, for the Fitch Family Indoor Aquatic Center, in the 4 amount of $4,328,536 f. RESOLUTION NO. 26-480 accepting completion of the contract for bid package 21-1 Fire Suppression Systems Work with Midwest Automatic Fire Sprinkler Company, of Des Moines, IA, for the Fitch Family Indoor Aquatic Center, in the amount of $129,400 g. RESOLUTION NO. 26-481 accepting completion of the contract for bid package 32-1 Paving & Sidewalk Work with Lakeside Contractors LLC, of Ames, IA, for the Fitch Family Indoor Aquatic Center, in the amount of $384,126 h. RESOLUTION NO. 26-482 approving partial release of retainage of the contract for bid package 22-1 Plumbing & HVAC Work with Brockway Mechanical & Roofing Co, Inc., of Des Moines, IA, reducing the contract retainage to $20,000 for the Fitch Family Indoor Aquatic Center 24. RESOLUTION NO. 26-483 accepting the 2025/26 Traffic Signal Program (S. Duff Avenue & S. 3rd Street) as completed by Iowa Signal, Inc., of Grimes, IA, in the amount of $75,423.95 25. Minor Final Plat for Monte's Subdivision at 2100 SE 16th Street a. Partial Waiver of Requirement to Install Sidewalk b. RESOLUTION NO. 26-484 approving Minor Final Plat 26. Dakota Townes Subdivision at 113 North Dakota Avenue a. RESOLUTION NO. 26-485 accepting public improvement agreement b. RESOLUTION NO. 26-486 approving the Final Plat 27. Story County Low and Moderate Income Housing Support Program Application a. RESOLUTION NO. 26-487 authorizing application to Story County for $230,000 to assist in the construction of three single-family affordable ownership housing units in the Baker Subdivision Roll Call Vote: 6-0. Motions/Resolutions declared carried/adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. RESOLUTION ACCEPTING THE 2026 CITY BOARDS AND COMMISSION SURVEY RESULTS: Council Member Rollins explained that she pulled the item to allow staff to comment on the survey. Assistant City Manager Pa Vang Goldbeck explained that this was the second year of the survey, which originated from a City Council goal to ensure the community was aware of service opportunities and that multiple perspectives were represented on boards and commissions. Approximately 120 community members who volunteer on boards and commissions were surveyed. Moved by Gartin, seconded by Betcher, to adopt RESOLUTION NO. 26-466 accepting the 2026 City Boards and Commission Survey Results. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. PUBLIC FORUM: Mayor Haila opened the Public Forum. Stephen Veysey addressed the City Council regarding solar energy. He urged the City Council and staff to proactively prepare shovel-ready projects for solar farm development in anticipation of future federal tax incentives for green energy. 5 The Public Forum was closed by Mayor Haila when no one else came forward to speak. DATA CENTERS: Assistant City Manager Brian Phillips, alongside Planning and Housing Director Kelly Diekmann, presented an update on data center regulations. He explained that staff had taken the list of 12 items previously presented to the City Council and placed them on a calendar to provide an estimated timeline of approximately six months. Staff also requested direction from the City Council regarding any additional items of interest to be added, as well as the length of the delay for allowing data center development in Ames. Mayor Haila framed the discussion by noting that of the 14 listed items, two related to a temporary pause or permanent ban, and that Item 7 Option IV, a rezoning process with either a master plan or overlay to allow for contract rezoning, was the option staff recommended for the development approval process. Mayor Haila invited the City Council to take up the 12 substantive items as a first motion, then move to additional topics, and finally address the length of the temporary pause. During discussion, Council Member Betcher indicated support for the approach and noted she had a clarification on Item 2 of the list, which currently read "restrict data centers based on building size, the use of on-site power generation, and the type of cooling system used." She wished to clarify for the public record that "on-site power generation" in this context referred to the type of primary power generation, such as RICE engines, and not to emergency generator use. She stated that the motion should be understood as addressing the primary type of power generation and type of cooling system. Moved by Beatty-Hansen, seconded by Betcher, to direct staff to research the 12 items on the provided list, with Option IV for Item No. 7 regarding a rezoning process with either a Master Plan or Overlay that allows for a contract rezoning. Vote on Motion: 6-0. Motion declared carried unanimously. Council Member Beatty-Hansen raised the topic of water quality, specifically regarding closed-loop cooling systems used in data centers. She noted that such systems may contain corrosion inhibitors or other chemicals, and that when they are flushed or if they leak, that water enters the municipal wastewater system. She asked staff to research whether the water pollution control facility had the capacity to treat such discharge, and what industrial pretreatment requirements might already apply or could be implemented. Mayor Haila clarified that the motion was specifically about wastewater, the water being discharged after use in a closed-loop cooling system, and not about incoming water supply to the facility. Council Member Beatty-Hansen confirmed this. Moved by Beatty-Hansen, seconded by Gartin, to request a memo from Water & Pollution Control staff regarding water quality issues, specifically in relation to water discharged from data center systems. Vote on Motion: 6-0. Motion declared carried unanimously. 6 Council Member Beatty-Hansen presented a second topic, requesting that staff research whether other communities have required data centers to source energy through renewables, purchase renewable energy credits, or otherwise contribute to green energy infrastructure. She proposed a "cafeteria plan" concept under which a company might fulfill requirements through a combination of on-site solar, credit purchases, or contributions to a City-administered fund for renewable energy buildout or distribution to residents. Moved by Beatty-Hansen, seconded by Junck, to direct staff to research if other cities have required that energy be sourced through renewables or credits purchased towards renewables or some other system where companies are asked to help build green infrastructure. Council Member Gartin expressed opposition, arguing that no other business had been required to meet such standards and that singling out one industry would be arbitrary. He also noted that at the initial Lightedge presentation, staff had outlined how the company would pay for its own transmission and additional generation costs, characterizing the energy burden as being addressed through existing mechanisms. Council Member Beatty-Hansen responded that data centers placed unique pressures on power systems unlike any singular industry the City had previously encountered. Council Member Junck added that the motion was simply to gather information, not to commit to implementation, and that the findings could ultimately apply to other large energy users in the community as well. Vote on Motion: 5-1, Gartin dissenting. Motion declared carried. Council Member Betcher noted that looking back at the major concerns raised at the public listening session, the 12-item list did not adequately address several environmental impacts, specifically heat generation and localized temperature increases, impacts on wildlife and habitat, and impacts on public health from low-frequency noise. She stated she was less interested in having staff absorb this work and more interested in having a study committee composed of local residents with relevant expertise investigate these topics concurrently with staff's work on the 12 items. Council Member Gartin expressed skepticism, noting that comparable data center facilities already existed, including in Altoona, and that conducting an environmental analysis without a specific project to review would essentially be hypothetical. Council Member Corrieri agreed conceptually, suggesting it would be more productive to study actual projects rather than generalities. Council Member Rollins argued in favor, stating that having expert-informed research proactively assembled would give the City Council a better toolkit when projects came forward. 7 After Director Diekmann clarified that the noise item already on the list would inherently cover human health impacts, as acoustic assessments were typically grounded in health- based standards, Council Member Betcher refined her motion to focus on three specific categories: heat generation and localized temperature increases; impacts on wildlife and habitat; and human health impacts not related to noise. Moved by Betcher, seconded by Beatty-Hansen, to form a study committee to look at environmental impacts not considered within the previous 12 items, including heat generation and localized temperature increases, and impacts on wildlife, habitats, and human health. Vote on Motion: 4-2, Corrieri and Gartin dissenting. Motion declared carried. Moved by Betcher, seconded by Beatty-Hansen, to direct staff report back to the City Council with information regarding possible public benefits of data centers and to direct staff to work with the City Assessor to determine what aspects of data centers generate property tax. In response to questions from Council Member Gartin, Council Member Betcher stated that she was speaking in reference to all data centers and not just the Lightedge project specifically. She noted that current public discourse tended to reduce the benefits to airport revenue alone, and that a more complete picture, including how other communities hosting large facilities have received benefits such as recreational amenities, would be valuable for both the City Council and the public. She also stated it was not clear to her or to other Council Members whether it was the building shell alone, or components of the interior as well, that generated property tax for these types of projects. Council Member Corrieri questioned the utility of such research without a specific project, noting that assessed values and negotiated incentives would vary significantly between projects. Council Member Betcher maintained that gathering a wide array of examples and brainstorming possible benefit structures was worthwhile as a foundation for future decision-making. Vote on Motion: 5-1, Corrieri dissenting. Motion declared carried. Council Member Rollins raised the issue of monitoring and accountability, noting public concern about whether companies would continue to operate consistently with their original commitments after establishment. She expressed interest in learning more about the mechanisms for ongoing reporting on energy use, energy source, water use, and discharge volumes, and what enforcement or sanctions would be available for non- compliance. Moved by Rollins, seconded by Junck, to direct staff to report back to the City Council with information regarding monitoring and accountability in relation to data centers, specifically what monitoring is possible and what are the enforcement mechanisms. Vote on Motion: 6-0. Motion declared carried unanimously. 8 Council Member Beatty-Hansen raised a concern brought up during public feedback sessions about the prioritization of power restoration following a major outage or emergency. She asked staff to clarify what protocols existed for reconnecting power in a crisis and whether the City had any ability to influence the order in which power is restored. Moved by Beatty-Hansen, seconded by Rollins, to direct staff to include in the report information about electric reconnection in the case of an emergency scenario and which users would have power restored first. Vote on Motion: 6-0. Motion declared carried unanimously. Mayor Haila opened discussion on the length of the temporary pause. He noted that a resolution had been included in the packet, and that staff had recommended a date- specific expiration rather than a fixed time period. During discussion, Council Member Gartin spoke in favor of staff's proposed six-month timeline and noting that extending the delay into the budget cycle could be problematic. He advocated for a delay calibrated to the scope of the work and noted that the City Council could always extend the delay if additional time proved necessary. Council Member Junck expressed concern that six months was insufficient, noting the timeline did not account for public feedback or City Council deliberation, let alone the additional items added during this evening's discussion. She suggested a delay of nine months. Council Member Gartin suggested the possibility of establishing separate tracks of analysis to address both the immediate Lightedge proposal and the broader scope of data center regulation, emphasizing that the City Council had the ability to methodically consider the Lightedge proposal while continuing a longer process to assess larger hyperscale data centers. Mayor Haila responded that it would be challenging for staff to negotiate with Lightedge due to the uncertainty of data center regulations at this point in the process. Moved by Betcher, seconded by Junck, to adopt RESOLUTION NO. 26-488 enacting a temporary delay in allowing data center development in Ames until May 1, 2027. Council Member Betcher reasoned that staff's six-month timeline did not include public feedback or deliberation time. It would also take additional time for staff to fulfill the additional requests added by the City Council this evening. She noted that if the work was completed sooner, the delay could end sooner, and if more time was needed, it could be extended. Council Member Corrieri urged the City Council not to select an arbitrary number, recommending instead that the delay be set in line with staff's estimate and extended as developments warranted. She also expressed concern that an extended delay was unfair 9 to Lightedge, which had submitted a proposal in good faith, and that conflating the review of data centers broadly with Lightedge's specific proposal created uncertainty for the applicant. Council Member Beatty-Hansen stated a preference for a one-year delay, citing the need for at minimum two additional public input sessions, and noting that the staff’s regular workload over the same period would compete for time. She stated she could accept nine months as a compromise. Vote on Motion: 4-2, Corrieri and Gartin dissenting. Resolution declared adopted, signed by the Mayor, and hereby made a portion of these Minutes. HEARING ON ANNEXATION OF AMES GOLF AND COUNTRY CLUB AND IRONS SUBDIVISION PROPERTIES: Director Diekmann presented information regarding the annexation of Ames Golf and Country Club and the Irons Subdivision properties, highlighting a property tax transition incentive with reductions of 75, 50, and 25 percent over three years. In June 2025, the City Council directed staff to commence the annexation process. Following a consultation meeting with Story County, at which no substantive objections were raised, certified mail notice was provided to all property owners within the annexation area and abutting property owners, as required by state law. The Planning and Zoning Commission determined in July that the annexation was consistent with the City's comprehensive plan. Director Diekmann noted that not all property owners had submitted voluntary applications, resulting in non-consenting properties indicated by hatched areas on the presented map. He stated the annexation technically qualified as an 80/20 annexation, requiring a finding that including non-consenting properties was consistent with state law. This was justified by the need for a uniform jurisdictional boundary along George Washington Carver Avenue and 190th Street to avoid interspersed properties along public streets, which would create challenges for emergency response and other jurisdictional services. Council Member Betcher asked for confirmation that all properties within the annexation area, regardless of whether they voluntarily applied, would receive the same three-year tax transition. Director Diekmann confirmed that the incentive, once offered to any property in the process, extended to all properties within the annexation. Mayor Haila asked Director Diekmann to clarify the relationship between annexation and the existing covenant obligation regarding extension of sanitary sewer. Director Diekmann explained that the covenant obligation for property owners to eventually connect to City sewer existed independently of annexation, and that annexation did not automatically trigger or alter the timeline for sewer extension. He indicated that until the Borgmeyer property obtained a sewer extension from the east side near the railroad to the west side, the project was not feasible and was unlikely to be considered before 2028 at the earliest. 10 Council Member Gartin asked whether the three-year tax transition had been utilized before. Director Diekmann confirmed this was the first time the City had utilized that provision of state code, characterizing it as a very generous proposal in recognition of the unusual circumstances faced by property owners who were not properly informed of the covenant's implications when they purchased their properties. Council Member Gartin expressed support, noting the generosity was appropriate given the situation. The Public Hearing was opened by Mayor Haila. Daryle Vegge spoke against the annexation, requesting that the City Council stop the annexation process. He also inquired why the City wanted to annex the area. Mayor Haila closed the Public Hearing when no one else came forward to speak. Council Member Gartin explained that it was not good planning to leave large tracts of land in the path of development unannexed, that property owners in the area would receive City services and thus pay taxes for them, and that the City Council had a duty to the broader community to follow best practices for growth and development. Moved by Beatty-Hansen, seconded by Betcher, to adopt RESOLUTION NO. 26-489 approving the annexation and a three-year imposition of the transition taxes. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. HEARING FOR APPROVAL OF 2026-2027 ANNUAL ACTION PLAN FOR THE CITY'S COMMUNITY DEVELOPMENT (CDBG) & HOME PROGRAMS: Housing Coordinator Vanessa Baker-Latimer presented the 2026/2027 Annual Action Plan for the City’s Community Development (CDBG) and HOME Programs. She noted the plan had been in development since March, including public input, and was now ready for early submission to the U.S. Department of Housing and Urban Development (HUD). She highlighted that the items in plan met eligibility requirements and would allow for the completion of the Baker Subdivision project, as well as meeting HUD's timeliness test. Coordinator Baker-Latimer addressed a public comment received regarding CDBG funding for sidewalk improvements in non-low/moderate income (LMI) census tracts. She explained that CDBG funds may only be used in LMI census tracts without undertaking a household-by-household income eligibility determination, which would consume significant staff time and resources. She noted she would be in conversation with the Public Works Department about what that might look like and might bring ideas back to the City Council in the future. In response to questions from Council Member Betcher, Coordinator Baker -Latimer noted that proposed projects included disposition of properties at 1107 Grand Avenue, 621 Grand Avenue, 1514 Duff Avenue, and the Baker Subdivision, all of which functioned as program income properties, meaning sales proceeds would return to the CDBG fund balance. 11 Council Member Betcher also asked whether CDBG funds could be used for code enforcement in LMI areas. Coordinator Baker-Latimer confirmed that the Dangerous Buildings Program in conjunction with inspections had been used in past years as part of the City's slum and blight activities, and while it was not among the specific projects proposed for the upcoming year, it remained in the program portfolio and could be re - activated for projects under $100,000 without requiring additional public comment. Council Member Gartin asked about the reliability of federal funding given the current environment. Coordinator Baker-Latimer confirmed that the City had received its funding for the coming year and expressed hope that an earlier submission would help with receiving a timely response. She noted a meeting was scheduled with the HUD field office the following month to discuss the direction for entitlement cities and the impact of reduced federal staff resources on funding timelines. Council Member Betcher mentioned that potential loosening of the Section 106 requirements might streamline some of the proposed projects. Coordinator Baker- Latimer spoke in agreement, noting that this could decrease time and cost for architectural surveys needed for State Historic Preservation Office (SHPO) review. She explained that Section 106 compliance had been resource-intensive, recalling a $25,000 to $30,000 expenditure for a water improvement program study, but also noted this ultimately resulted in expedited SHPO approval. Mayor Haila opened and closed the Public Hearing when no one came forward to speak. Moved by Gartin, seconded by Betcher, to adopt RESOLUTION NO. 26-490 approving the submittal of 2026-2027 CDBG/HOME Annual Action Plan. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. HEARING ON 2025/26 LOW POINT DRAINAGE IMPROVEMENTS PROGRAM PROJECT (VARIOUS LOCATIONS): Public Works Director Justin Clausen provided a brief update on the 2025/26 Low Point Drainage Improvements Program, reporting that favorable bids had been received. Council Member Rollins asked whether JC Midwest was a firm the City had worked with previously. Director Clausen confirmed the City had not previously contracted with JC Midwest, but noted that staff had spoken with the firm following bid opening and felt confident in its work based on the contractor’s previous projects in the Des Moines metro area. Council Member Betcher asked whether these improvements would help mitigate flooding following major rain events. Director Clausen confirmed they would help with more normalized rainfall events but acknowledged that infrastructure designed affordably could not meaningfully address 100- to 1,000-year events such as those experienced on July 3rd and 4th. He noted that the City Council would be seeing additional information 12 from him as part of an ongoing stormwater study. The Public Hearing was opened and closed by Mayor Haila when no one came forward to speak. Moved by Beatty-Hansen, seconded by Gartin, to approve Alternative No. 1: • Accept the report of bids. • Adopt RESOLUTION NO. 26-491 approving final plans and specifications and awarding a contract to JC Midwest Services, of St. Charles, IA, in the amount of $174,637. Roll Call Vote: 6-0. Motions/Resolution declared carried/adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. Council Member Beatty-Hansen observed that the project was listed as a FY 2025/26 initiative and asked whether timelines would improve going forward. Director Clausen explained that the stormwater study approved in FY 2025/26 was ongoing, and preliminary results were expected within one to two months. Staff intended to present findings to the City Council during the upcoming Capital Improvement Program process and discuss whether any reshuffling of priorities was warranted based on recent events. Mayor Haila asked whether the delay reflected a study that preceded the construction project itself. Director Clausen confirmed that the study was initiated under FY 2025/26 appropriations and was ongoing and noted that the City was also evaluating which projects could realistically make a difference versus those without a viable solution. HEARING TO CONSIDER VACATION OF AN EXISTING PUBLIC UTILITY EASEMENT AT DISCOVERY PLACE 2ND ADDITION SUBDIVISION: Director Clausen briefly explained that this item involved vacating an existing public utility easement that was no longer needed at Iowa State University Research Park's Discovery Place 2nd Addition Subdivision, as the developer would be replatting lots and dedicating new easements to align with the reconfigured layout. Mayor Haila opened and closed the Public Hearing when no one came forward to speak. Moved by Gartin, seconded by Betcher, to adopt RESOLUTION NO. 26-492 approving vacation of existing public utility easement. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. HEARING ON VACATION OF ELECTRIC UTILITY EASEMENT AND APPROVAL OF THE DISCLAIMER OF INTEREST IN REALTY FOR THE 161KV TRANSMISSION LINE RELOCATED FOR IOWA DEPARTMENT OF TRANSPORTATION: The Public Hearing was opened by Mayor Haila. 13 Moved by Betcher, seconded by Rollins, to continue the Public Hearing at staff’s request to August 11, 2026. Vote on Motion: 6-0. Motion declared carried unanimously. APPEAL OF CONDITIONS OF APPROVAL OF A CERTIFICATE OF APPROPRIATENESS FOR 904 KELLOGG AVENUE: Planner Parker Walsh, alongside Director Diekmann, presented information regarding an appeal of conditions of approval of a Certificate of Appropriateness (COA) for 904 Kellogg Avenue. The subject property was located in the Old Town Historic District and was subject to Chapter 31 historic preservation regulations. In 2025, the property owner installed a mini-split HVAC system without first obtaining a COA as required for exterior alterations. The matter was brought to staff's attention through a complaint, and upon investigation, staff reached out to the applicant to request that they submit the required paperwork retroactively. Because Chapter 31 contained no specific guidelines for mini-split systems, staff and the Historic Preservation Commission (HPC) relied on the design guidelines for alterations and the Secretary of the Interior's Standards for Rehabilitation. The HPC approved the retroactive COA with conditions, one of which required encasing and concealing the exposed supply lines running along the exterior of the house. It was this specific condition that the property owner was appealing. Planner Parker noted that the applicant submitted new information with the appeal, in the form of a contractor statement regarding the difficulty of retroactively meeting the encasement condition. Staff's recommendation was to uphold the HPC's approval and deny the appeal, as the HPC applied the review criteria reasonably based on the information available at the May 11th meeting. If the City Council believed the new contractor statement constituted significant new information that the HPC should address, the alternative would be to remand the application back to the HPC. Council Member Beatty-Hansen asked whether the new contractor information might change the HPC's verdict. Director Diekmann stated that this could not be known, noting the HPC had to work with what was presented at the time of its May 11th review. He added that if the mini split had been installed with prior approval, the conditions might have been different. In response to questions from Council Member Gartin, Director Diekmann clarified that this was believed to be the first time in the history of the historic district that an appeal of an HPC decision had come to the City Council. He noted that if remanded, the HPC would issue a new decision, and the property owner would again have a 30-day window to appeal back to the City Council. City Attorney Mark Lambert further explained that if the City Council were to deny the appeal and the property owner remained dissatisfied, the property owner could appeal the City Council's decision to district court. Council Member Betcher expressed that the HPC had acted as it should, applying the existing standards, and that the applicant should have sought prior approval rather than asking for retroactive forgiveness. She stated she did not see what the HPC had done 14 incorrectly. In response to questions from Council Member Beatty-Hansen, Director Diekmann confirmed that the HPC was planning to develop formal mini split guidelines at its August meeting, following three mini split cases during the current season. Council Member Beatty-Hansen asked the question of whether it would be prudent to wait for the new standards before acting on the appeal. Director Diekmann clarified that the City Council's role tonight was solely to determine whether the HPC acted in a manner that was patently arbitrary in applying existing Chapter 31 standards, not to anticipate future standards that had not yet been adopted. During continued discussion, Council Member Gartin asked for a brief explanation of what a mini split system was. Director Diekmann presented some photographs and explained that mini splits were increasingly common in older homes lacking ductwork, and that the City only regulated their aesthetic installation in the historic district. He explained that the condition at issue, encasing the supply line running horizontally under a soffit on one side of the house in PVC and painting it to match the house, was what the applicant was contesting. The applicant had agreed to comply with the other conditions, including painting the visible pipe on the front-facing facade. Mayor Haila opened and closed the Public Input when no one came forward to speak. Moved by Betcher, seconded by Rollins, to adopt RESOLUTION NO. 26-493 to deny the appeal of the conditions of approval for a Certificate of Appropriateness for 904 Kellogg Avenue. Roll Call Vote: 5-1, Gartin dissenting. Resolution declared adopted, signed by the Mayor, and hereby made a portion of these Minutes. REQUEST TO INITIATE PLAN 2040 LAND USE DESIGNATION AMENDMENT FOR 300 AIRPORT ROAD: Mayor Haila noted that the applicant had requested the item be moved to future agenda. Moved by Beatty-Hansen, seconded by Rollins, to table the item to the Regular Meeting of the Ames City Council on August 11, 2026. Vote on Motion: 6-0. Motion declared carried unanimously. RESOLUTION ACCEPTING EASEMENTS AND APPROVING PURCHASE AGREEMENTS FOR THE 2024-26 TRAFFIC SYSTEM CAPACITY IMPROVEMENT PROGRAM (13TH & GRAND): Civil Engineer II Mark Gansen, alongside Director Clausen, presented an update on the 13th Street and Grand Avenue intersection project. Engineer Gansen explained that negotiations on property acquisition had been ongoing since November 2025, and that of the 12 easement and acquisition packages remaining, 10 were being presented to the City Council for approval. The other two remained in active negotiations. Engineer Gansen stated that staff was seeking approval of the packages detailed in 15 Table 2 of the Council Action Form, along with approximately a two -month window to finalize remaining negotiations before returning to the City Council for further direction in approximately September. Staff recommended a 2028 construction date to allow acquisitions to finalize in 2026, ancillary construction in 2027, and adequate time to work through access, staging, and impact conversations with all adjacent properties. Council Member Gartin asked for a visual overview of the project. Engineer Gansen presented a map, explaining that the green -highlighted parcels represented the 10 easements before the City Council this evening, with at least one parcel in each quadrant of the intersection. Staff anticipated approximately six of the remaining 12 packages could be secured within the two -month window, cutting the outstanding items roughly in half. Council Member Beatty-Hansen asked whether staff would return in September if voluntary agreements were not achieved, and Engineer Gansen confirmed that staff would. The Public Input was opened and closed by Mayor Haila when no one came forward to speak. Moved by Betcher, seconded by Rollins, to adopt RESOLUTION NO. 26-494 accepting easements and approving purchase agreements for the 2024-26 Traffic System Capacity Improvement Program (13th & Grand). Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. AMES MUNICIPAL ENERGY CENTER: Director of Electric Services Donald Kom, alongside Assistant Director of Electric Services Curtis Spence and Finance Director Corey Goodenow, presented the Ames Municipal Energy Center update. Director Kom provided an overview of the project budget and explained that the two contracts before the City Council covered the top line items: the Generator Step-Up (GSU) transformer, and three Reciprocating Internal Combustion Engines (RICE). After recent developments regarding the negotiation of a performance and supply bond, staff was recommending Alternative No. 2. Director Kom explained that the transformer contract provided for delivery in 33 months. This timeline fit well with the overall project schedule, as early delivery would create storage problems and late delivery would become the critical path driver. The transformer to be purchased was a General Electric 69/138 kV unit. Staff recommended awarding the contract to Cahoon Sales, Inc., of Iowa City, Iowa. Assistant Director Spence presented the recommendation to purchase three 18V50DF dual-fuel RICE engines from Wartsila North America, Inc. Each engine was rated at 18.13 megawatts. The contract called for delivery on foundation in October 2029. Assistant Director Spence explained two changes to the scope since the July 21st City Council Workshop. First, a galvanizing adder was incorporated to hot -dip galvanize 16 exterior structural steel rather than paint it, improving longevity and reducing maintenance. Second, the Euro-to-US-dollar exchange rate used to calculate the contract value had been updated. The rate would be fixed as of the date the first payment was received by Wartsila, anticipated to be within seven days of contract signing. Until that point, the City bore the exchange rate risk, though staff noted the rate had been trending in a relatively narrow range in the preceding weeks. After the first payment, Wartsila would bear all further exchange rate risk. Council Member Gartin asked whether there were caps on exchange rate fluctuation to protect both parties. Assistant Director Spence confirmed there were no caps, but that the City's risk window was limited to the roughly seven days until the wire transfer was sent, after which Wartsila assumed all currency risk. Council Member Gartin indicated he was comfortable with this given the narrow exposure window. Assistant Director Spence presented a significant development regarding Wartsila's willingness to provide a Performance and Supply Bond. Initially quoted at approximately $1,500,000, staff and Assistant Director Spence negotiated the cost down to $1,026,178. Director Kom acknowledged that at the July 21st City Council Workshop, staff had recommended against taking the bond on cost grounds, and that the Electric Utility Operations Review and Advisory Board had similarly not recommended it at that time. However, after engaging the City's contract attorney, who specialized in this type of project and had worked with Wartsila on multiple prior engagements, the attorney's recommendation was that it was prudent for a community such as Ames to obtain the bond. Director Kom noted that the surety provider was a European financial institution, not a U.S. bank, but that staff had reviewed Wartsila's publicly available financials. He described Wartsila as a solid company founded in 1835, with approximately 17,000 employees and 50 active projects in the United States. Assistant Director Spence summarized key contract language negotiations completed with the attorney. On the "change of law" provision, Wartsila's draft had proposed the City bear responsibility for any tariffs imposed due to trade relationships between Finland and third countries. This was successfully negotiated out; the City was now only responsible for tariffs and taxes applicable to the United States. On the "force majeure" provision, Wartsila's original draft would have allowed current Middle East conflicts to constitute a triggering event, potentially placing the City in a contract already in force majeure. Staff negotiated language requiring that force majeure apply only to future unforeseen events, and that Wartsila would be required to explore alternative supply arrangements before invoking force majeure. The attorney had indicated satisfaction with the final draft. Director Kom outlined the next steps following the award of the contracts. Staff would facilitate the first payment, due within one week of contract signing, locking in the currency exchange rate for the contract. The team would also submit a Midcontinent Independent System Operator generator interconnection application and proceed with the construction manager at risk selection to assist with detailed design and construction. The 17 financing plan for the entire project would be presented to the City Council on August 25th. After discussion regarding the final contract amounts, Mayor Haila tabled the item until later in the meeting to allow staff additional time to determine the exact dollar amounts of the contracts requested to be approved by the City Council. THE BLUFFS AT 4899 EVEREST AVENUE: Moved by Rollins seconded by Betcher, to pass on third reading and adopt ORDINANCE NO. 4601 Rezoning Ordinance with Master Plan. Roll Call Vote: 6-0. Motion declared carried unanimously. Moved by Betcher, seconded by Rollins, to adopt RESOLUTION NO. 26-497 approving Rezoning Agreement. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. THIRD READING AND ADOPTION OF ORDINANCE NO. 4602 ON ZONING TEXT AMENDMENT MODIFYING THE NORTHEAST GATEWAY OVERLAY DISTRICT (O-GNE) STANDARDS: Moved by Rollins, seconded by Beatty-Hansen, to pass on third reading and adopt ORDINANCE NO. 4602 on Zoning Text Amendment modifying the Northeast Gateway Overlay District (O-GNE) Standards. Roll Call Vote: 6-0. Motion declared carried unanimously. DISPOSITION OF COMMUNICATIONS TO COUNCIL: Mayor Haila noted that there were eight items for consideration. The first item was a letter regarding mowing at 1706 Amherst Drive from John Schuh. Moved by Beatty-Hansen, seconded by Betcher, to request a memo from Public Works staff. Vote on Motion: 6-0. Motion declared carried unanimously. A request for investigation and action regarding the July 4 storm drain failure on Nixon Avenue from Ann Shuey was the second item. Moved by Betcher, seconded by Rollins, to request a memo from Public Works staff. Vote on Motion: 6-0. Motion declared carried unanimously. The third item was from Craig Sackett regarding safety concerns for the road curve located by Stonehaven Apartments. Moved by Beatty-Hansen, seconded by Betcher, to request a memo from Public Works staff. Vote on Motion: 6-0. Motion declared carried unanimously. A proposal regarding the Lightedge Development Project from Mike McDaniel was the fourth item. This item was noted to be for information only. 18 The fifth item was a concern from Mike Frisk regarding flooding in North Ames. Moved by Beatty-Hansen, seconded by Corrieri, to include this item in the formerly requested memo from Public Works staff. Vote on Motion: 6-0. Motion declared carried unanimously. A request to waive the requirement for rural subdivision covenants for a Plat of Survey at 3500 360th Street from Erin Ollendike was the sixth item. Moved by Betcher, seconded by Rollins, to request a memo from Planning and Housing staff. Vote on Motion: 6-0. Motion declared carried unanimously. The seventh item was a request for golf cart use for fraternities and sororities from ISU Interfraternity Council. Moved by Beatty-Hansen, seconded by Rollins, to request a memo from the Chief of Police and Risk Manager. Vote on Motion: 6-0. Motion declared carried unanimously. A memo regarding Senate File 2378 from City Attorney Lambert was the final item. Moved by Beatty-Hansen, seconded by Betcher, to place the item on a future agenda. Vote on Motion: 6-0. Motion declared carried unanimously. REPORT OF GOVERNING BODY: Council Member Gartin reported on a visitor experience update that was presented by Katie Kramer at the most recent Discover Ames meeting, noting a large number of events being facilitated. Council Member Betcher added that the meeting also included an announcement of the CyTown groundbreaking, scheduled for September 2nd. Council Member Rollins noted that the Ames Regional Economic Alliance meeting was scheduled for Friday. Mayor Haila reported on the July 15th Story County Emergency Management meeting. Topics discussed included an emergency operations center project underway in the basement of the Story County Courthouse, funded by Story County for construction and by SCEMA for technology upgrades, with anticipated completion in late summer or early fall. He described a $100,000 disaster fund available as a short -term lending mechanism for small communities needing funds for emergency cleanup. He also noted a solar grant of approximately $80,000 that was received for portable solar panels and battery packs for emergency use. Mayor Haila praised Fire Chief Rich Higgins for his active involvement. Strategic plan review and direction for the next five years were also discussed. Mayor Haila indicated he would be proposing that the SCEMA coordinator come to a City Council meeting for a brief informational presentation on the agency's 19 services and network. COUNCIL COMMENTS: Council Member Betcher shared that the Rummage Rampage event was underway at 129 Hayward Avenue. She noted that the opening day of the event saw $27,000 in cash purchases, not counting Venmo transactions. She acknowledged Council Member Beatty-Hansen's partnership through the Ames Repair Cafe, which was operating in conjunction with the event. Council Member Rollins thanked staff for its ongoing efforts on the data center discussions and thanked the community for remaining engaged, noting that all emails to Council Members were being read. Council Member Gartin announced that National Night Out was scheduled for the following Tuesday, August 4th, at 5:30 p.m. at Ames Middle School. He gave a special acknowledgment to the Police Department for its leadership in the event, and separately extended appreciation to City staff who work outdoors in extreme heat to ensure continued delivery of City services. AMES MUNICIPAL ENERGY CENTER (CONTINUED): Director Kom, alongside Assistant Director Spence and Director Goodenow, presented the finalized contract amounts for the GSU transformer and three RICE units. Moved by Beatty-Hansen, seconded by Rollins, to adopt RESOLUTION NO. 26-495 awarding contract to Cahoon Sales, Inc., of Iowa City, IA, for the Generator Step-Up (GSU) Transformer for the Ames Municipal Energy Center, in the amount of $2,470,416, inclusive of all applicable taxes. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. Moved by Gartin, seconded by Junck, to adopt RESOLUTION NO. 26-496 awarding contract to Wartsila North America, Inc., of Houston, TX, for three 18V50DF engines and auxiliary equipment, in the amount of $76,789,739.52, inclusive of all applicable taxes, tariffs, and performance and supply bond (subject to currency conversion rate). Prior to the vote, Council Member Gartin asked how long it would take to transfer the initial payment after City Council approval. Director Goodenow indicated that assuming the contract was signed the following day, the wire transfer would be sent approximately one week later, at which point the exchange rate would be locked for the life of the contract. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. ADJOURNMENT: Moved by Betcher, seconded by Rollins, to adjourn the meeting at 8:36 p.m. Vote on Motion: 6-0. Motion declared carried unanimously. 20 ______________________________ ______________________________ Taylor Swanson, Deputy City Clerk John A. Haila, Mayor ______________________________ Renee Hall, City Clerk