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HomeMy WebLinkAboutA001 - August 25, 2026, Regular Meeting of the Ames City Council Extended Minutes1 MINUTES OF THE REGULAR MEETING OF THE AMES CITY COUNCIL AMES, IOWA AUGUST 25, 2026 The Regular Meeting of the Ames City Council was called to order by Mayor John Haila at 6:01 p.m. on the 25th day of August, 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. PROCLAMATION FOR "WATER AND WASTEWATER WORKERS WEEK," AUGUST 23-29, 2026: Mayor Haila proclaimed August 23-29, 2026, as "Water and Wastewater Workers Week.” The proclamation recognized the essential contributions of the City’s water and wastewater workforce to public health, environmental protection, and utility operations, as well as quality of life and economic vitality for the community. Director of Water and Pollution Control (W&PC) John Dunn, joined by numerous staff members from W&PC, accepted the proclamation. Director Dunn thanked the Mayor and City Council Members, before highlighting that safe and reliable water and wastewater service requires contributions from employees across City departments, including Water and Pollution Control, Public Works, Finance, and Fleet Services, among others. He paid special recognition to the employees that respond around the clock in difficult weather and emergency conditions. AMES EVENT CENTER PRESENTATION BY DISCOVER AMES: Kevin Bourke, President and CEO of Discover Ames, presented a proposal for the Ames Event Center, highlighting support of the project from various community stakeholders. He reviewed that four independent studies conducted periodically over the last 30 years had consistently identified a continuing shortage of conference and event space in Ames. The most recent feasibility study was completed in 2025 and found that the Ames community required at least 30,000 square feet of additional event space. President Bourke reported that without such a facility, bids for conferences, trade shows, banquets, meetings, hotel stays, restaurant spending, retail purchases, and entertainment spending were awarded to competing Iowa communities. With those considerations, he requested that the City Council consider a monetary commitment to the project of $25 million dollars, roughly half of the estimated construction cost. President Bourke noted that remaining project costs would be supported and fundraised by the Ames Regional Economic Alliance and Discover Ames, along with other collaborating partners. He proposed that the facility be owned by the City of Ames, with the overall project supported by a working group comprised of various stakeholders. Council Member Gartin asked about the desired project timeline. President Bourke shared that the timeline remained in flux; however, the goal was to complete the facility in time to begin booking events for 2029. Council Member Gartin also asked how an operating shortfall 2 would be addressed if one occurred. President Bourke stated that the feasibility study projected no operating shortfall, though he acknowledged that outcomes would be dependent on a variety of factors. He described possible sources for addressing a future shortfall, which included hotel/motel tax revenues. Council Member Beatty-Hansen asked about a construction-cost shortfall. President Bourke stated that the $25 million estimate was intended to be conservative. He acknowledged scope, finishes, inflation, and City construction requirements as variables affecting the total cost and asserted that the proposed working group would evaluate those issues to consider additional fundraising or a reduced project scope if necessary. Council Member Gartin then asked about the impact of the facility on sales tax. President Bourke shared that the facility was estimated to attract approximately 20,000 additional overnight visitors to Ames annually, with total visitation potentially greater with non-overnight visitors included. He highlighted that the project would diversify City revenues that currently relied heavily on property taxes. The Mayor and Council Members thanked President Bourke for the presentation and acknowledged the letters that had been received from various community members, as well as stakeholders, in support of the project. No action on the item was taken. CONSENT AGENDA: Moved by Corrieri, seconded by Junck, to approve the Consent Agenda. 3. Motion approving payment of claims 4. Motion approving Report of Change Orders for period of August 1-15, 2026 5. Motion approving Summary of Minutes of the Regular City Council Meeting on August 11, 2026, and Special City Council Meeting on August 18, 2026 6. Motion approving new 5-Day (September 13-17, 2026) Class C Retail Alcohol License with Outdoor Service - Hy-Vee #2, 1407 University Boulevard 7. Motion approving new 5-Day (September 26-30, 2026) Special Class C Retail Alcohol License with Outdoor Service - Hy-Vee #2, 1407 University Boulevard 8. Motion approving new 5-Day (October 3-7, 2026) Special Class C Retail Alcohol License with Outdoor Service - Hy-Vee #2, 1407 University Boulevard 9. Motion approving new 5-Day (October 31-November 4, 2026) Special Class C Retail Alcohol License with Outdoor Service - Hy-Vee #2, 1407 University Boulevard 10. Motion approving the renewal of the following Alcohol Licenses: a. Whiskey River, 132-134 Main Street, Class C Retail Alcohol License with Catering Privilege b. Wallaby's Bar and Grille, 2733 Stange Road, Class C Retail Alcohol License with Outdoor Service c. Kwik Stop Liquor & Groceries, 125 6th Street, Class E Retail Alcohol License 11. Requests for the Ames Public Library Family Farm Festival with Author Jill Esbaum on Saturday, September 19, 2026: a. Motion approving blanket Temporary Obstruction Permit 3 b. Motion approving blanket Vending License c. RESOLUTION NO. 26-522 approving closure of Douglas Avenue from 5th Street to 6th Street, including the closure of 17 metered parking spaces, between 8:00 a.m. and 1:00 p.m. on September 19, 2026 d. RESOLUTION NO. 26-523 approving waiver of fee for blanket Vending License e. RESOLUTION NO. 26-524 approving waiver of parking meter fees 12. RESOLUTION NO. 26-525 approving Encroachment Permit for sign located at 400 Main Street - Studio 13 13. RESOLUTION NO. 26-526 amending FY 2026/27 outside funding request contract with Ames Regional Economic Alliance for Campustown activities 14. RESOLUTION NO. 26-527 approving special funding request for FY 2026/27 from The Arc of Story County 15. Lime Sludge Disposal Contract: a. RESOLUTION NO. 26-528 accepting year three of the five-year Lime Sludge Disposal Contract as completed by Wulfekuhle Injection and Pumping, of Peosta, IA, in the amount of $302,635.49 b. RESOLUTION NO. 26-529 awarding year four of the five-year Lime Sludge Disposal Contract to Wulfekuhle Injection and Pumping, of Peosta, IA, in an amount not-to-exceed $392,140 16. RESOLUTION NO. 26-530 approving one-year (November 1, 2026, through October 31, 2027) renewal agreement for a Transportation Data & Analytics Subscription Service with StreetLight Data, Inc., of San Francisco, CA, in an amount not to exceed $72,000 17. RESOLUTION NO. 26-531 approving IDOT Detour Agreement for US 30 Pavement Project 18. RESOLUTION NO. 26-532 approving Professional Services Agreement with McClure Engineering Company, of Clive, IA, for the 2026/27 Sanitary Sewer Extension: North Growth East West Sanitary Sewer project, in an amount not to exceed $100,060 19. RESOLUTION NO. 26-533 approving preliminary plans and specifications for the construction of the Ames Animal Services Facility, setting September 30, 2026, as the bid due date and October 13, 2026, as the date of Public Hearing 20. RESOLUTION NO. 26-534 approving preliminary plans and specifications for the Water Treatment Plant Split Treatment Modifications Project, setting September 23, 2026, as bid due date and October 13, 2026, as date of public hearing 21. RESOLUTION NO. 26-535 awarding contract to Travis Body & Trailer, of Houston, TX, for the purchase of seven walking floor solid waste trailers in the amount of $942,585 22. RESOLUTION NO. 26-536 approving Change Order No. 4 with Petrotech Inc., of New Orleans, LA, for Combustion Turbine Controls Upgrade in the amount of $10,039.81 (inclusive of sales tax) 23. RESOLUTION NO. 26-537 accepting CyRide's 2025 Facility Fire Protection Improvement Project Closeout as completed by Henkel Construction Company, of Ames, IA, and releasing retainage in the amount of $12,415.52 4 24. Water Treatment Plant Well Rehabilitation Program: a. RESOLUTION NO. 26-538 accepting year four of the five-year Water Plant Well Rehabilitation Contract as completed by Northway Well and Pump Company, of Waukee, IA, in the amount of $126,472.94 b. RESOLUTION NO. 26-539 awarding year five of the five-year Water Plant Well Rehabilitation Contract to Northway Well and Pump Company, of Waukee, IA, in the amount of $98,613.48 for mobilization and rehabilitation of three wells in FY 2026/27 25. Fitch Family Indoor Aquatic Center: a. RESOLUTION NO. 26-540 accepting completion of the contract for bid package 22-1 (Plumbing & HVAC) with Brockway Mechanical & Roofing Co. Inc., of Des Moines, IA, for the Fitch Family Indoor Aquatic Center, in the amount of $4,308,269 b. RESOLUTION NO. 26-541 approving partial release of retainage for bid package 26-1 (Electrical, Communications, Electronic Safety & Security) with Van Maanen Electric, Inc., of Newton, IA, reducing the contract retainage to $14,000 for the Fitch Family Indoor Aquatic Center 26. RESOLUTION NO. 26-542 approving Minor Final Plat for Northridge Heights 20th Addition 27. RESOLUTION NO. 26-543 approving Plat of Survey for 999 E 190th and 6494 Arrasmith Trail in Rural Story County 28. Tabor Ridge Final Plat: a. RESOLUTION NO. 26-544 approving the Major Final Plat for Tabor Ridge b. RESOLUTION NO. 26-545 accepting the Public Improvements Agreement 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 the Public Forum. Karin Sevde, Executive Director of the Story County Community Foundation, reported that the Foundation awarded grants to nonprofits and small businesses across the community in an amount totaling nearly $300,000 in the previous year. She encouraged eligible entities to consider applying for the upcoming grant period, noting that applications were due by September 30, 2026. She directed those interested in learning more to visit www.storycountyfoundation.org. Stacey Ross, Chair of Friends of Roosevelt Park, extended an invitation to the Mayor, City Council, and public to attend the final Roosevelt Summer Sundays concert of the season, scheduled for Sunday, August 30 at 7:00 p.m. in Roosevelt Park. She highlighted that Southbound, a local band, would be performing. She concluded by thanking donors and sponsors including the Commission on the Arts as well as the Parks and Recreation Department, for supporting the concert series. Mayor Haila closed the Public Forum when no one else came forward to speak. 5 BUILDING AND FIRE CODE DISCUSSION: Fire Chief Rich Higgins, alongside Building Official Sara VanMeeteren and Assistant Building Official Scott McCambridge, presented proposed updates to the City’s building and fire codes. Building Official Van Meeteren highlighted that the City currently used the 2015 International and Uniform Codes; however, the State of Iowa recently adopted the 2024 International and Uniform Codes following a comprehensive update. She explained that local jurisdictions could not adopt plumbing or mechanical standards less restrictive than state standards, though more restrictive local amendments were permitted. She noted that the State had temporarily prohibited local amendments to the electrical code, although the restriction was expected to be rescinded during the next state code-cycle action, which was anticipated to occur in the spring. Building Official Van Meeteren shared that following the adoption of the 2024 International Building Code at the state level, staff proceeded with a robust outreach process that launched in January with a lunch-and-learn session with the Ames Home Builders Association (AHBA). Subsequently, a code-review committee was formed and additional public outreach ensued followed by coordinated review of the code with W&PC, and final review by the Building Board of Appeals. Building Official Van Meeteren stated that staff had worked to clarify local interpretations, eliminate outdated amendments, and align City standards with surrounding jurisdictions where practical. Fire Chief Higgins then discussed smoke-alarm and carbon-monoxide-alarm requirements. Under the proposed code, building permits would trigger review of alarm requirements, while electrical, mechanical, and plumbing permits would not require smoke-alarm upgrades outside of work that involved fuel-burning appliances. He stated that the proposal sought to advance safety without creating excessive burdens for small projects. Building Official Van Meeteren added that required smoke and carbon-monoxide alarms could be battery-operated and would not need to be hardwired in existing homes. Council Member Gartin asked whether the members of the AHBA had raised concerns that were not reflected in the proposed ordinance. Building Official Van Meeteren identified the requirement for a rated floor assembly beneath unfinished basements as the principal unresolved issue. She stated that only approximately one-quarter of newly constructed homes with basements had unfinished basements and that staff considered safety protection important. Council Member Gartin then asked whether the updated code would provide clearer interpretation for contractors. Building Official Van Meeteren stated that the International Codes were extensively vetted and supported by commentary explaining their intent. She said staff welcomed contractor questions and attempted to work with contractors on code- modification requests or practical alternatives that maintained the required safety level. Fire Chief Higgins added that staff had researched practices in neighboring jurisdictions to promote consistency for contractors working in multiple communities. Mayor Haila asked whether a new gas range would trigger smoke-alarm requirements. Building Official Van Meeteren clarified that a gas range would trigger a carbon-monoxide- 6 alarm requirement, rather than a smoke-alarm requirement. Mayor Haila also asked about feedback on the proposed ordinance from mechanical contractors. Building Official Van Meeteren said staff had heard concerns about requiring interconnected alarms and the possibility that appliance contractors would need to coordinate with separate electrical contractors. She said the proposal addressed those concerns by allowing battery-operated alarms and not requiring new alarms to connect to all existing alarms. She stated that staff planned to create educational materials for contractors and homeowners. Mayor Haila then asked whether alternatives to drywall could satisfy the unfinished- basement floor-protection requirement. It was confirmed that alternatives, including appropriate fire-rated suspended ceiling systems, could be considered if they met the required protection standard in the code. The Public Input was opened by Mayor Haila. Jake Hanson, Co-Owner of Prairie Land Homes, spoke on behalf of the AHBA. He thanked staff for conducting deliberate outreach and for involving builders and the Building Board of Appeals. He stated that housing affordability was a significant concern, noting that the rated floor-assembly requirement for unfinished basements would add cost for buyers who planned to finish basements later. He also expressed concern about alarm requirements associated with appliance permits. While he acknowledged that alarm costs could be lower than floor-assembly costs, he was concerned that a homeowner’s failure to install required alarms could complicate contractors’ ability to close permits. He cautioned that higher compliance costs could encourage unpermitted work and asked the City Council to adopt Alternative No. 3, reflecting the recommendation from the Building Board of Appeals. The Public Input was closed by Mayor Haila when no one else came forward to speak. Council Member Gartin followed up by requesting staff explain the cost-benefit analysis for retaining the rated-floor requirement. Fire Chief Higgins stated that the City of Ames had been the only Iowa community known to staff that did not require the protection. He explained that exposed wood framing could fail more quickly in a basement fire, while drywall or equivalent protection could provide occupants with more time to escape and provide firefighters a safer floor from which to attack a basement fire. He said the requirement served both occupant safety and firefighter safety. Moved by Gartin, seconded by Rollins, to pass on first reading an ordinance revising Municipal Code Chapters 5 and 8, including the adoption of the proposed 2024 International and Uniform Codes, with State and local amendments, as presented by staff. Roll Call Vote: 6-0. Motion declared carried unanimously. ORDINANCE REVISING MUNICIPAL CODE CHAPTER 14 REQUESTED BY AMES HUMAN RELATIONS COMMISSION: Moved by Rollins, seconded by Beatty-Hansen, to pass on second reading an ordinance revising Municipal Code Chapter 14 requested by Ames Human Relations Commission. 7 Roll Call Vote: 6-0. Motion declared carried unanimously. RESIDENTIAL CURBSIDE RECYCLING COLLECTION IN ALLEYS: Mayor Haila noted that he moved this item forward on the agenda because of the anticipated length and complexity of the discussion. Public Works Director Justin Clausen, alongside Assistant City Manager Brian Phillips, presented a report on options for residential curbside recycling service in alleys. Director Clausen stated that the new curbside recycling program began July 1 and served 13,461 properties. Of those properties, 247, or approximately 1.8%, had opted out of the program. About 1,000 properties in 82 blocks had alley access, and eight of those properties had opted out. Staff had received concerns from residents at 27 properties regarding the difficulty of moving recycling carts from alley -served homes to curbside collection locations. Director Clausen explained that alleys varied substantially in width, access, overhead clearance, vegetation encroachment, utility lines, dead ends, landscaping, and the mix of alley-served and curbside-served properties on individual blocks. The contract with Aspen Waste Systems (Aspen) was designed around automated side-loading trucks, which were approximately 13 feet wide with collection equipment extended and approximately 13 feet tall. Those trucks provided efficient service with one operator but could not safely navigate many narrow alleys. Rear-loading trucks were smaller and more maneuverable but required additional employees, operated more slowly, and cost more. Four alternatives were presented by Director Clausen for consideration by the City Council: 1. Continue curbside service for all properties except the 13 alleys currently being served in alleys. 2. Continue the current service approach but allow limited opt-outs from the $7.75 monthly charge for properties meeting specific hardship criteria. 3. Continue curbside service while adding targeted automated alley service to 29 blocks, subject to successful field testing and vegetation clearance; estimated contract amendment cost: $40,000 annually, or approximately $0.25 per customer per month. 4. Serve all alley-access blocks in alleys using rear-loading trucks; estimated contract amendment cost: $80,000 annually, or approximately $0.50 per customer per month, with a likely future fee increase. Director Clausen highlighted that it was the recommendation of staff to approve Alternative No. 2. The proposed eligibility criteria for an opt-out included alley adjacency, lack of driveway frontage to a street, receipt of trash service in the alley, a physical impediment preventing practical access from the home to the front of the property, and a distance of more than 60 feet from the nearest property line to the curb. 8 Council Member Beatty-Hansen asked whether the City could hire a separate provider or negotiate a separate contract for alley service. Assistant City Manager Phillips stated that such a change would require negotiation with Aspen Waste Systems and likely would require savings from the existing contract to be identified and transferred to a new service arrangement. He stated that the City had not explored that option in detail. Council Member Beatty-Hansen also asked how a future request for proposals could better address alley conditions. Assistant City Manager Phillips stated that, when the existing five-year contract neared expiration, the City could either negotiate an extension or issue a new request for proposals with clearer specifications for service areas and alley conditions. He cautioned that service decisions made now could create expectations for future service. Council Member Gartin commended staff for the quality and depth of the report. He asked how other communities handled alleys and whether vegetation clearance could be addressed as a practical matter. Director Clausen stated that automated side-loading service was generally the most efficient and economical method where alley dimensions permitted it, while rear-loading service was the practical alternative where conditions did not permit automated trucks. Director Clausen also noted that side vegetation could be trimmed, but ongoing maintenance and larger overstory trees on private property would require continued attention. Assistant City Manager Phillips highlighted that residents might view a more active City role in enforcing alley-vegetation clearance as a significant change in expectations. Council Member Beatty-Hansen suggested that residents along alleys be notified of vegetation-clearance requirements even if the City did not immediately change service arrangements. She stated that advance communication would allow residents time to address encroachments instead of facing an abrupt enforcement effort. Mayor Haila asked what the original request for proposals and contract had required regarding alley service. Assistant City Manager Phillips stated that neither document specifically guaranteed that recycling would be collected at the same location as trash collection. The contract defined curbside collection in several ways, including collection at the front of a property, near a ditch where no curb existed, or in an alley along a property line. He said the documents did not clearly resolve whether every individual property could choose its own preferred collection location or whether a block would be served through one collection pass. Assistant City Manager Phillips stated that Aspen had responded during the request -for- proposals process that it believed most alleys could be served. Mayor Haila observed that 13 of 82 alleys did not appear to constitute “most” alleys and said the City Council needed to understand both the original expectations and available solutions. Mayor Haila opened the Public Input. 9 Thor Nelson, Executive Vice President of Aspen Waste , stated appreciation for the thorough analysis and partnership of City staff. He said the request for proposals had asked how alleys could be served , and that Aspen Waste had stated rear-loading trucks could serve alleys that automated side-loading trucks could not. He emphasized that the executed contract controlled the scope of service and that it was structured as an automated curbside collection program. He stated that Alternative No. 4 effectively reflected the price that would have been proposed had the request for proposals required all identified alleys to receive rear-loading service. He explained that mixed curbside and alley service on the same block was unusual for a municipal c itywide collection program and created operational complications. Melanie Rogotzke shared that her home had alley trash collection, no driveway or curbside access, and a distance of more than 200 feet, including stairs and a steep hill, between the alley and street. She also expressed concern that vehicles parked continuously along the street would make curbside placement difficult and could create potential liability if a cart fell against a vehicle. She expressed disappointment that recycling had initially been collected from her alley but was later discontinued. She stated that she believed alley conditions should have been evaluated more thoroughly before the contract was approved. Mayor Haila closed the Public Input when no one else came forward to speak. Following the Public Input, the City Council Members discussed considerations for each Alternative. Council Member Betcher raised concerns about winter access, hills, lack of paths, parking, and the proposed opt-out criteria, for the City Council’s consideration. She stated that the ability to reach a front curb should not be presumed merely because a property lacked a fence. Council Member Corrieri asked whether, under Alternative No. 2, staff would still work individually with affected residents before requiring them to opt out. Public Works staff stated that staff would contact the 27 residents who had raised concerns and would explore individual solutions, such as identifying a collection location, creating a designated cart-placement area, considering parking restrictions, or finding another workable arrangement. Staff also stated that the City Council could revise the five opt-out criteria or ask staff to return with modified criteria. Mayor Haila noted that one resident had contacted him in support of Alternative No. 3 because that resident wanted to participate in the recycling program but might not meet the proposed opt-out criteria. He expressed concern that requiring residents to move carts down alleys or to side streets, particularly in winter, did not reflect the City’s desired level of customer service. He also recognized that no alternative would fully satisfy every property condition. Council Member Corrieri expressed concern that Alternative Nos. 3 and 4 would move difficulties from one group of residents to another. She also asked that the City retain flexibility to revisit alley service as vegetation conditions, equipment, and service options changed. 10 Moved by Gartin, seconded by Junck, to approve Alternative No. 2: Approach the issue in the same manner as Alternative No. 1 (continue with curbside service as is), but identify limited criteria to allow for a full opt-out of the fee, and direct staff to prepare an amendment to the curbside recycling ordinance that would allow for certain alley -adjacent customers to opt out of the program and paying the mandatory $7.75 per month recycling fee. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Beatty-Hansen, seconded by Junck, to direct staff to prepare a communication to residents along alleys describing the City Council’s decision, stating that the City intended to continue examining alley recycling issues, and reminding residents of alley - clearance and vegetation-setback requirements. Vote on Motion: 6-0. Motion declared carried unanimously. CITY COUNCIL DATA CENTER STUDY COMMITTEE PLAN: Council Member Betcher reported that she had developed a proposed plan and timeline for the Data Center Study Committee with Council Member Beatty-Hansen and ex officio Anderson. She stated that the intent was to recruit committee members efficiently, provide the committee flexibility to finish its work earlier than the maximum schedule if possible, and complete the process within the nine-month delay period previously established by the City Council. Council Member Betcher stated that the proposed September 15 meeting date on page 2 of the plan should be modified to provide flexibility for either September 15 or September 22, because the September 15 special meeting might not occur. She also explained that Council Member Beatty-Hansen, ex officio Anderson, and herself would assist with reviewing applications of interested committee members and bring membership recommendations to the City Council for approval. The trio would also participate in the first committee meeting and would remain available as needed. Moved by Corrieri, seconded by Rollins, to adopt RESOLUTION NO. 26-546 approving the City Council Data Center Study Committee Plan with the aforementioned amendment. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. APPOINTMENT OF AN INTERIM CITY ATTORNEY: Assistant City Manager Pa Vang Goldbeck was present to answer questions. Moved by Corrieri, seconded by Junck, to adopt RESOLUTION NO. 26-547 appointing interim City Attorney for the City of Ames. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. IMPACTS OF SF 2472 RELATED TO PROPERTY TAXES AND DEVELOPMENT INCENTIVES: Finance Director Corey Goodenow, alongside Planning and Housing Director Kelly Diekmann, presented an overview of Tax Increment Financing (TIF), urban 11 revitalization tax abatement, industrial tax abatement, and the implications of Senate File 2472. Director Goodenow explained that TIF permits the City to capture the growth in taxable value above an established base value within a TIF district. He highlighted that base taxes continue to flow to taxing entities, while the increment may be used for eligible urban-renewal purposes, including infrastructure financing and development incentives. He noted that TIF revenues are calculated using a levy that excludes certain debt-service and school levies. TIF was then contrasted with tax abatement. Under tax abatement, a qualifying portion of property value was temporarily exempted from taxation. The City currently had three-year, five-year, and ten-year abatement schedules in various urban revitalization areas. It was explained that abatements remove taxable value, while TIF redirects a portion of tax revenue generated by new value. Director Goodenow described the City’s industrial tax-abatement program under Iowa Code Chapter 427B. That program applied citywide and provided an automatic five-year schedule for qualifying industrial projects. He emphasized that the City Council had no project-specific discretion under the existing Chapter 427B framework once a project met state eligibility standards. Senate File 2472, signed May 18, 2026, imposed a 2% cap on growth in general-fund property-tax collections, plus the value of qualifying new construction. Director Goodenow stated that valuation released from tax abatement or TIF would not count as new valuation for purposes of increasing the City’s general-fund levy capacity. He characterized that provision as a major change because incentive-supported development might add service demands without providing the City with corresponding general-fund growth capacity. Director Goodenow also explained that Senate File 2472 removed the Business Property Tax Credit, eliminating approximately $400,000 in annual state backfill revenue to the City. The legislation also changed the homestead credit structure and created new reserve restrictions. City Manager Steve Schainker stated that the 2% cap and exclusion of TIF- and abatement-released value from “new valuation” made the City’s prior development- incentive assumptions less effective. A potential strategy to create additional Urban Renewal Areas (URAs) and TIF districts before January 1, 2027, was reviewed by Director Goodenow. He stated that doing so could preserve the existing TIF calculation that included the $5.40 school foundation levy. He highlighted that TIF ordinances would not commit the City to a specific project or incentive; rather, they would establish the geographic and legal framework that could be used later if the City Council approved a project-specific obligation. Council Member Gartin asked whether a new TIF district would automatically expire after 23 years. Director Diekmann clarified that a URA and plan could continue, but a TIF ordinance’s ability to collect increment would generally be limited to 23 years after the City incurred an obligation and began collecting TIF revenue. 12 Existing URAs were reviewed and Council Member Gartin suggested that West Lincoln Way be considered for a future URA because that corridor could benefit from focused attention. Director Diekmann stated that the City Council had until its September 8 meeting to add or remove areas if it wanted the City to meet the January 1 deadline for preserving the existing TIF calculation. Moved by Junck, seconded by Corrieri, to place a discussion of potential Urban Renewal Areas and TIF Districts on the agenda for the September 8, 2026, Regular Meeting of the Ames City Council. Vote on Motion: 6-0. Motion declared carried unanimously. Director Diekmann then summarized recommended strategies identified by staff as next steps: 1. Establish targeted urban renewal areas and TIF districts before January 1, 2027, where appropriate. 2. Delay TIF collection for the first year, and possibly the second year, of a completed project when possible so the City could capture new valuation for general-fund purposes before beginning TIF collection. 3. Phase out the existing ownership-housing tax-abatement program, which staff stated had not measurably increased housing production. 4. Modify existing urban revitalization tax-abatement schedules to provide no abatement in the first year. 5. End the automatic industrial tax-abatement approach and instead consider a City- controlled incentive policy that could provide a comparable value over a shorter abatement period following an initial taxable year. Director Diekmann explained that the ownership-housing abatement program could remain available for existing lots and permits initiated during the proposed transition period, but staff recommended ending eligibility for new lots and projects beginning after the transition. He stated that the City’s development-incentive emphasis would shift toward negotiated TIF arrangements, particularly where the City could better manage timing, project obligations, and public benefit. Council Member Gartin asked whether developers had been consulted about the proposed phaseout. Director Diekmann replied in the affirmative, stating that the TIF strategy was discussed with developers involved in anticipated incentive requests, including The Linc project, but that the ownership-housing abatement program affected a broader group of builders and homebuyers rather than only subdivision developers. 13 Moved by Gartin, seconded by Junck to approve Strategy Nos. 2, 3, 4, and 5. Vote on Motion: 6-0. Motion declared carried unanimously. FY 2025/26 CLIMATE ACTION PLAN UPDATE: Sustainability Coordinator Nolan Sagan, alongside Director of Electric Services Donald Kom and Green Iowa AmeriCorps Members DiMaucia Phanfil and Ava Brunner, presented the report on the Climate Action Plan update. Sustainability Coordinator Sagan highlighted that efforts showed a 15% reduction in greenhouse-gas emissions since 2018, attributed to fuel switching at the City and Iowa State University power plants, and improvements in residential energy efficiency. Goals set included a 70% reduction by 2030 and 94% by 2050, with the electric sector currently being the largest emissions source. Coordinator Sagan noted that ongoing initiatives included various rebate programs designed to encourage energy efficiency improvements, a Rural Energy Savings Program aimed at supporting local energy improvements, and various pilot projects focused on high- performance residential construction. He furthered that in the realm of transportation, the City was focusing on the usage of alternative fuels in municipal vehicles. Coordinator Sagan also stated that the first month of the newly implemented curbside recycling program had shown promising results and would further reduce waste-related emissions in the City. Next, Green Iowa AmeriCorps Members Brunner and Phanfil reported successful educational outreach in various community sectors, including residential energy audits and weatherization, as well as organizing programs in collaboration with local entities like the Ames Public Library and Reiman Gardens. Council Member Gartin thanked AmeriCorps Members Brunner and Phanfil for their service and asked about the mapping of energy audits. AmeriCorps Member Brunner stated that addresses were recorded and that mapping had been used to identify low-income housing areas for outreach. She noted that they anticipated expanding mapping efforts in the next program year. Mayor Haila posed a question concerning CyRide’s ongoing conversion to B100 biodiesel fuel. City Manager Schainker indicated that CyRide had acquired grant funding, which was related to the conversion project and associated on-site fueling infrastructure. No action was taken was taken following the presentation. ELECTRIC REVENUE LOAN AND DISBURSEMENT AGREEMENT : Director Goodenow, alongside PFM Managing Director Susanne Gerlach, presented an updated financing plan for the Ames Energy Center generation project. Staff explained that the City had approved a contract of approximately $72 million for Reciprocating Internal Combustion Engines (RICE) and that substantial payments would occur sooner than originally anticipated. Director Gerlach recommended a three-phase financing approach rather than the earlier approach of relying more heavily on short-term construction financing at the outset. The first phase would finance approximately $51 million of costs through February 2028; the 14 second would finance approximately $71.55 million through March 2029; and the third would use short-term construction financing near the end of the project to right -size borrowing after construction costs were known more precisely. Director Gerlach stated that the proposed three-phase approach would lock in long-term rates sooner, reduce interest-rate risk, and save an estimated $7.4 million over the financing term compared with the alternative approach. Council Member Gartin expressed concern about the national debt environment and potential pressure on municipal interest rates. Director Gerlach agreed that the market consensus anticipated rising rates and stated that the recommended approach sought to hedge that risk by locking in the first phase of long -term fixed-rate borrowing earlier. She also stated that the current electric-revenue-bond rating was Aa2 but that the substantial new debt would likely result in a lower rating for future electric revenue bonds. She considered A1 to A2 a favorable outcome and A3 a potential worst -case scenario, while emphasizing that an A3 rating would remain investment grade. She explained that each rating notch affected interest costs and provided estimates of the present -value effect of rating changes. Mayor Haila asked how the electric-revenue-bond rating might affect City borrowing for other projects. Director Goodenow explained that electric revenue bonds were separately rated from the City’s general-obligation credit, though the City’s overall financial position and future capital commitments remained important. Moved by Corrieri, seconded by Gartin, to adopt RESOLUTION NO. 26-548 fixing September 8, 2026, as the date for public hearing on proposal to enter into an Electric Revenue Loan and Disbursement Agreement and to borrow money thereunder in a principal amount not to exceed $53,930,000. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2026C: Director Goodenow, alongside PFM Director Gerlach, reported on the competitive sale of the City’s General Obligation Corporate Purpose Bonds, Series 2026C. The bonds would finance annual Capital Improvements Plan (CIP) projects as well as the construction of Fire Station No. 2 and the Resource Recovery and Recycling Campus. Director Gerlach reported that Moody’s affirmed the City’s Aa1 general-obligation rating with a stable outlook. Three bids were received from six registered bidders. Raymond James submitted the lowest true-interest-cost bid at 4.0497%, followed by Robert W. Baird at 4.088%. She stated that pricing reflected market uncertainty and expectations of rising interest rates. The final par amount was reduced to $43,610,000 by applying available premium toward project costs Moved by Gartin, seconded by Rollins, to adopt RESOLUTION NO. 26-549 accepting bids and approving the sale and issuance of General Obligation Corporate Purpose Bonds, Series 2026C, in an amount not-to-exceed a combined par and premium amount 15 of $43,610,000 and providing for the Levy of Taxes to pay the same. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. Director Gerlach further discussed Moody’s rating report. She stated that the Aa1 rating and stable outlook were positive, but that the City’s long -term-liabilities ratio and reserve levels were approaching thresholds that Moody’s had identified for potential future concern. Moody’s stress-tested the City’s financial position using the planned approximately $190 million Ames Municipal Energy Center (AMEC) project. The financial advisor stated that the City’s long-term-liabilities ratio, excluding Mary Greeley Medical Center (MGMC) revenues, was nearing 180%, compared with a 200% threshold identified in the rating analysis. She estimated that the City had approximately $48 million of additional cushion before reaching that threshold under the cited stress test. City Manager Schainker noted that several projects under discussion, such as a n indoor recreation center, downtown event center and parking facilities, and future wastewater projects, were not included in the current CIP or Moody’s evaluation. He stated that the City would need to evaluate the size, timing, financing source, revenue effect, and debt impact of future projects carefully. Director Gerlach advised the City Council to consider the timing of projects, the potential return on investment, new construction, local-option sales-tax effects, reserve levels, and whether projects were included in the near-term CIP. She stated that projects were not necessarily infeasible, but that the City had entered a different financial environment in which the timing and financing of major projects would matter more. Council Member Gartin stated that the discussion reinforced the importance of continued growth in the community’s tax base. City Manager Schainker agreed but emphasized that growth supported through TIF or abatement must be structured in a way that allows the City to capture sufficient operating revenue under the new state property-tax limitations. HEARING ON 2025/26 ASPHALT STREET PAVEMENT IMPROVEMENTS (HILLCREST AVE, ELLIS ST, KENTUCKY AVE, ILLINOIS AVE, INDIANA AVE, OKLAHOMA DR, AND DELAWARE AVE) PROJECT: Director Clausen was present to answer questions. The Mayor opened and closed the Public Hearing when no one came forward to speak. Moved by Corrieri, seconded by Beatty-Hansen, to accept the report of bids. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Rollins, seconded by Corrieri, to adopt RESOLUTION NO. 26-550 approving final plans and specifications and awarding contract to Manatt's, Inc., of Ames, IA, in the amount of $4,513,414.65. Roll Call Vote: 6-0. Resolution declared adopted unanimously, signed by the Mayor, and 16 hereby made a portion of these Minutes. DISPOSITION OF COMMUNICATIONS TO COUNCIL: Mayor Haila noted that there were 14 items for consideration. The first item was a memo from Planner Justin Moore regarding a request to waive City subdivision standards and land use designations at 3500 560th Avenue. Moved by Corrieri, seconded by Beatty-Hansen, to place the item on a future agenda. Vote on Motion: 6-0. Motion declared carried unanimously. A request from Tanner Hoegh for data center rate payer protections was the second item. No action was taken on this item. The third item was a request for rezoning of land and sanitary sewer from Chuck Winkleblack. Moved by Junck, seconded by Corrieri, to refer to staff for a memo. Vote on Motion: 6-0. Motion declared carried unanimously. A memo from Attorney Mark Lambert regarding unilateral bidding error was the fourth item. This item was noted to be for information only. The fifth item was a memo from Director Clausen in response to a request regarding accessible parking regulations. Moved by Beatty-Hansen, seconded by Corrieri, to respond to the requestor and thank them for their input. Vote on Motion: 6-0. Motion declared carried unanimously. A memo from Director Clausen in response to a request regarding cul-de-sac parking was the sixth item. 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. The seventh item was a memo from Director Clausen in response to a request regarding the Grand Avenue shared use path at Allan Drive. Moved by Beatty-Hansen, seconded by Corrieri, to respond to the requestor and thank them for their input. Vote on Motion: 6-0. Motion declared carried unanimously. A memo from Director Clausen in response to a request regarding the Lincoln Way Corridor study expansion was the eighth item. 17 Moved by Junck, seconded by Corrieri, to place the item on a future agenda. Vote on Motion: 6-0. Motion declared carried unanimously. The ninth item was a memo from Director Clausen in response to a request regarding the Campus Avenue sewer claim from Steve Bock. Moved by Junck, seconded by Rollins, to take no action. Vote on Motion: 5-1, Gartin opposed. Motion declared carried. A memo from Director Clausen in response to a request regarding street parking concerns on Stonehaven Drive was the tenth item. Moved by Junck, seconded by Corrieri, to respond to the requestor and thank them for their input. Vote on Motion: 6-0. Motion declared carried unanimously. The eleventh item was a memo from Director Clausen in response to a request regarding Food at First parking meter enforcement hours. Moved by Rollins, seconded by Beatty-Hansen, to take no action. Vote on Motion: 6-0. Motion declared carried unanimously. A memo from Director Clausen in response to a request regarding pedestrian safety at Gray Avenue and Sunset Drive was the twelfth item. Moved by Rollins, seconded by Corrieri, to direct staff to share the memo with the requestor. Vote on Motion: 6-0. Motion declared carried unanimously. The thirteenth item was a memo from Director Clausen in response to a request regarding the north-south railroad quiet zone. Moved by Corrieri, seconded by Rollins, to take no action. Vote on Motion: 6-0. Motion declared carried unanimously. A memo from Director Diekmann regarding a request for annexation from Manatt’s was the final item. Moved by Beatty-Hansen, seconded by Corrieri, to place the item on a future agenda. Vote on Motion: 6-0. Motion declared carried unanimously. REPORT OF GOVERNING BODY: Council Member Junck reported that the Ames Transit Agency Board of Trustees approved the agency safety plan and awarded a contract for the 2026 steam-clean bag-hoist replacement. Council Member Betcher stated that the Discover Ames Board had met and discussed 18 the Ames Event Center. She also reported that the Board approved an additional community grant for the Frozen 5K fundraiser at the Ames/ISU Ice Arena. With other board meetings scheduled for the upcoming weeks, no other reports were shared. COUNCIL COMMENTS: Ex officio Anderson welcomed Iowa State University students back, highlighting the start of the academic year. He encouraged student participation in the forthcoming Data Center Study Committee and reported that the Student Government would hold its first meeting of the semester the following day. Council Member Gartin wished a speedy recovery to an Ames police officer injured during an interstate traffic stop. He thanked City employees who perform dangerous work on behalf of the community. He also recognized City Attorney Lambert, who was finishing out his final City Council meeting before retirement. He shared that a retirement gathering for City Attorney Lambert would be held Friday, August 28, from 2:00 to 4:00 p.m., with a program at 3:00 p.m. Council Member Beatty-Hansen thanked City Attorney Lambert for his service. She noted the return of Iowa State University students, the recent Cyclone Welcome Weekend, and upcoming Welcome Fest activities. Council Member Betcher also thanked City Attorney Lambert for his service and encouraged residents to apply for the Data Center Study Committee. She stated that applications were expected to be available beginning Wednesday, August 26. She also recognized CyRide’s recent 50th-anniversary event and commended all CyRide staff for their service to the community. ADJOURNMENT: Moved by Rollins, seconded by Junck, to adjourn the meeting at 10:24 p.m. Vote on Motion: 6-0. Motion declared carried unanimously. Detailed meeting minutes respectfully submitted by Carly M. Watson, Consulting Secretary to the Mayor and City Council.