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MINUTES OF THE SPECIAL MEETING

OF THE AMES CITY COUNCIL

AMES, IOWA JULY 18, 2017

The Ames City Council met in special session at 6:00 p.m. on the 18th day of July, 2017, in the City
Council Chambers in City Hall, 515 Clark Avenue, pursuant to law with Mayor ProTem Orazem
presiding and the following Council members present: Bronwyn Beatty-Hansen, Gloria Betcher,
Amber Corrieri, Tim Gartin, and Chris Nelson. Ex officio Member Rob Bingham was also present.
Mayor Campbell was absent.

Assistant City Manager introduced Tesheik Kerr, newly hired Management Analyst. Ms. Kerr
provided her background that lead her to her new position.

REGULATING OCCUPANCY IN RENTAL UNITS: City Manager Steve Schainker noted that
during the latest session, the State Legislature had passed a law that stated, after January 1, 2018, “a
city shall not...adopt or enforce any regulation or restriction related to the occupancy of residential
rental property that is based upon the existence of familial or nonfamilial relationships between the
occupants of such rental properties.”

Council Member Peter Orazem noted the usage of “familial or nonfamilial relationships” and asked
to have that defined. Interim City Attorney Mark Lambert explained that basically, cities cannot use
familial status or the lack of familial status to deny renting to anyone.

At the inquiry of Council Member Gartin, City Manager Schainker noted that the City of Iowa City
initiated a moratorium ordinance. Iowa City shall not issue a rental permit for any dwelling that is
not subject to a current rental permit or a rental permit that expired within the past 18 months and
shall not issue a building permit that would result in an enlargement of a rental dwelling located
within the area described above.

Mr. Schainker shared that on May 23, 2017, the Planning and Housing Director, Assistant City
Attorney, Fire Chief, Community Codes Liaison, and he traveled to the Des Moines City Hall to
discuss strategies for protecting the City’s neighborhoods by limiting occupancy based on something
other than familial status. Others attending that meeting included representatives from Cedar Falls,
Iowa City, and Des Moines. The group discussed a number of possible strategies for regulating
occupancy in residential rental units. Mr. Schainker reviewed the list of options that had been
discussed. City representatives agreed that there is a concern that the General Assembly will take
action next year to prohibit whatever actions the cities take to limit occupancy through a means other
than family affiliation. There were also concerns that if the option chosen either limits the percentage
of rentals in a neighborhood or creates a separation distance between rental properties, there will be
concerns about grandfathering existing rental units while licenses are valid and whether they can
receive a new license if they do not meet the restriction. Under that option, the question was to
allocate licenses equitably. Also discussed was that basing limitations solely on age could be
unworkable for many households within the City due to the recent trend of children returning to home
as adults or grandparents being cared for at home by their adult children.

City Manager Schainker described a four-point approach on one possible strategy that staff feels could
be legally defensible. He said that after the joint meeting of the cities, City staff had met to develop
a more-focused list of options for the Council to consider. Those options were as follows:

1. Limit the concentration of rental units in a specified geographic area.
2. Limit the number of adults who can inhabit a rental unit.
3. Limit occupancy in rental units to a specified amount of square footage per person.
4. Limit occupancy based on the number of off-street parking spaces.
5. Limit occupancy in rental units based on a multi-tiered approach.

The City Manager shared that, on June 29, 2017, he and the Planning and Housing Director met with
members of the SCAN Association. The options offered by the SCAN representatives were listed by
Mr. Schainker, as follows:

1. Limit occupancy in rental units to no more than three adults aged 18 to 55.
2. Limit occupancy in rental units to no more than three undergraduates.
3. Don’t allow any additional rental units in low density residential neighborhoods.
4. Limit building envelopes of existing structures so that single-family buildings that are being rented

cannot be expanded to accommodate more renters.

5. Incentivize conversion from rental to owner-occupied houses.
6. More aggressively enforce the existing “nuisance” related violations (noise, parking, etc.).
7. Modify the Zoning Ordinance to prevent changes to architectural features (such as enclosing

porches) to rental units in the low density residential areas.

Mr. Schainker told the City Council that, assuming that the Council would like to pursue new
occupancy regulations, it would be helpful for them to provide staff direction regarding a general
approach that either (1) limits the number of adults in a rental unit or (2) relies upon a quantitative
limit on renters based on square footage of a home, number of bedrooms, number of off-street parking
spaces, or some other indicator. He noted that if the approach selected relies on a per-renter
quantitative limit, larger homes would likely have more occupants.

Council Member Betcher asked if it would be possible to create an overlay district to regulate
occupancy. City Manager Schainker said it would be possible. He stated that the biggest concern of
the staff would be verifying changes by January. It would be almost impossible for the City to inspect
and guarantee the new standard by that time.

At the inquiry of Council Member Nelson, Zoning Enforcement Officer Sara VanMeeteren listed the
Zoning Classifications, the number of buildings, and the number of units.

** Leslie Kawaler, 2121 Hughes, Ames, gave a presentation prepared by the South Campus Area
Neighborhood.

Two primary goals of the SCAN were noted as being:
1. Stabilizing and revitalizing vulnerable neighborhoods.
2. Maintaining the quality of life

Ms. Kawaler listed several reasons why the Neighborhood Association believes too many rentals are
a problem. She presented pictures of some local rentals showing furniture in the front yard and
unkempt and poorly maintained yards. Ms. Kawaler identified other neighborhoods that they believe
are vulnerable, specifically, SCAN, CC/OAMS, west of Campus, Oakland, and Sunrise. It was
emphasized by Ms. Kawaler that not all Ames neighborhoods need stabilization. It is only when the
number of rental units reaches a point of imbalance. If the Council agrees, they might want to create

some sort of Campus-impacted zoning overlay. To address the problem, SCAN is suggesting the
following:

Neighborhood Stabilization. Institute a rental density cap on each block or street of no more
than 25%.

According to Ms. Kawaler, this is not a new idea. Other cities have done this either on a
percentage basis or with a limitation on the proximity of rentals to one another. She said that
West St. Paul, Minnesota; North Mankato, Minnesota; Northfield, Minnesota; Winona,
Minnesota; St. Paul, Minnesota; and Kutztown, Pennsylvania, all have density caps in place.
The rental density cap had been upheld by the Minnesota Court of Appeals. The current
license holders are generally grandfathered in. There are limited exemptions for homeowners.
In areas where the rental cap has been exceeded and a homeowner is having trouble selling,
a city can offer incentives to first-time homebuyers or low-income homebuyers to help bring
back balance to the neighborhood.

Quality of Life. Limit occupancy of rental property in all RL (or only vulnerable RL)
neighborhoods to no more than three persons between the ages of 18 and 55.

Ms. Kawaler stated that the Iowa Supreme Court has ruled that cities have a legitimate interest
in promoting peaceful and quiet neighborhoods with low population, limited congestion of
motor vehicles, controlled transiency, and maintenance of property values. She pointed out
that for those very reasons, the City had adopted its original ordinance limiting rentals in the
RL to a family or three unrelated individuals. However, since occupancy may no longer be
limited in that way, the City needs to find a permissible way to limit the number of tenants
who may live together in RL neighborhoods or risk degradation of its most vulnerable and
affordable neighborhoods.

According to Ms. Kawaler, Iowa law does not seem to prohibit limiting housing options based
on age. Council Member Gartin asked how the City would enforce that. Ms. Kawaler said the
neighborhood residents would see how many people are coming and going. She commented
that she was alright with the Council limiting occupancy to three adults, but they were trying
to be more flexible for families. According to Ms. Kawaler, the SCAN sincerely hopes that
the City does not base occupancy on the number of bedrooms. Mr. Gartin asked if it would
be possible to base it on the number of bedrooms, but prohibit the atrocities that are currently
occurring.

Closing the “Parental Loophole.” Ms. Kawaler noted the importance of the City closing the
“parental loophole.” The current definition includes “owner’s relative within the first degree
of consanguinity.” This appears to be ignored. Ms. Kawaler pointed out that, with several
roommates, the property really is rental and should be registered and regulated. She said that
more and more parents are purchasing houses for their children/students and their friends.
Only one roomer is permitted, but that is either not real known or being ignored. It was
important to note that those properties will not be subject to any new rental regulations that
are imposed, they won’t count in a rental cap, and they won’t likely be covered by an
occupancy limit because the owners believe it is exempt.

When asked how the City approaches a situation where parents purchase a home for their
student, Ms. VanMeeteren replied that the City relies on the other neighborhood residents to

report it. Then the City sends a notice stating that they have to register their property and have
the property inspected. It was shared by Ms. Betcher that many of the Codes that she has
reviewed states that the owner or the owner’s agent has to live there.

Other changes suggested by the SCAN were presented by Ms. Kawaler, as follows:

Creative solutions including tax incentives to encourage home buyers to convert rental
housing back of owner-occupied.

Alter the definition of “occupancy” in rental housing to include long-term guests.

Require landlords to have a local agenda available 24/7.

Raise landlord permit fees to help pay for additional enforcement.

Annual rental inspections.

Consider moratorium on building permits and new rental licenses in RL (or “vulnerable” RL)
until occupancy issue is resolved because it is not felt that this issue is going to be resolved
by January 1, 2018.

Ms. Kawaler asked what the Council’s role will be in shaping the vision for Ames: laissez
faire/market-driven or proactive.

** Barbara Pleasant, 516 Lynn Avenue, Ames, gave the number of rental units by street; she estimated
that the Neighborhood is approaching 50% rental.

Council Member Betcher questioned whether the City ever inspects when the renters are there. Fire
Chief Shawn Bayouth answered that landlords have asked City not to inspect when it’s just the tenants
who are present. Ms. VanMeeteren noted that it is difficult for staff to tell how many people actually
live there. The City investigates on a complaint-basis. When a rental is registered, there is an initial
inspection, and then it is set up for another inspection between one and four years.

Council Member Orazem asked for the definition of “unit.” Ms. VanMeeteren answered that a single-
family home is one unit; a duplex would be two units.

** Ann Grevstad-Nordbrock, 521 Hayward Avenue, Ames, stated that she upheld what SCAN had to say.
She opposes the change in regulation that makes it easier for more than three unrelated people to live
there. Ms. Grevstad noted that she and her family are part of the 17% that is a permanent year-round
resident. She shared her experience of living in East Lansing, Michigan. The value of their home in
East Lansing increased, and their former neighborhood thrived because it had an overlay district.
There was a great diversity in the neighborhood. According to Ms. Grevstad-Nordbrock, East Lansing
offered incentives to retain single-family homeownership. She believes that Campustown in Ames
has that same potential; enforcement is an important issue.

Brian Torresi, attorney with DavisBrown Law Firm, advised that he was present as the representative
for the Ames Rental Association. Mr. Torresi noted that what is lacking in this discussion and former
discussions was the information from many other neighborhood associations as well as the landlords.
He pointed out that staff had met with SCAN, but the City needs to meet with the Ames Rental
Association and landlords. He also pointed out that Minnesota case law does not apply in Iowa.

** Joanne Pfeiffer, 3318 Morningside Street, Ames, thanked SCAN for giving the City options. She
reminded the Council that she had been talking about “quality of life” for some time now and its
importance to neighborhoods.

** Grant Berthold, 2312 Storm Street, Ames, asked if it were possible to limit occupancy based on tax
status. He felt that it would achieve the same goal as when familial status was used.

** Mary Warren, 3121 Maplewood Drive, Ames, pointed out that the Iowa Senate passed the new law
with very bipartisan support. She feels that whatever the City comes up with will be objectional by
the Legislature and believes that the City’s focus should be on the enforcement side.

** Fern Kupfer, 2100 Ashmore Drive, Ames, said she was the Former President of SCAN. Ms. Kupfer
pointed out that local ordinances are so very important. Situations are different in college
communities. This is about degradation of neighborhoods in favor of rentals.

** Kelly Excell, 5603 Hickory Hills, Ames, advised that she was a property manager. She said that her
agency welcomes occupancy limits. The Federal Fair Housing Act prohibits the use of familial status
to regulate occupancy. She believes that a lot of the problems are the result of a lack of enforcement.
The problems result from the behavior of the renters. Having bad renters is extremely detrimental to
not only the City, but to the landlords as well.

Barbara Pleasants advised that she had gone through the City Assessor’s Web page and looked at the
what was shown for the residences of the owners of several homes. Many of them don’t live in Ames.
Some live out-of-state and can’t be reached. She knows of no single-family renter in her
neighborhood.

** Ms. Warren, 3121 Maplewood Drive, Ames, again spoke. She pointed out that the rental climate has
changed. The number of bathrooms, bedrooms, and amenities, such as walk-in closets and granite
countertops, are important. She commented that the rules for East Lansing and other cities don’t
pertain to Ames, and it is now known what the issue in that city might have been.

Ms. Grevstad-Nordbrock agreed that enforcement is important. However, she feels what is important
is to ask what does the City do with the change in the law and what is wanted for Ames as a whole.
She reiterated that is important to curb the number of rentals to protect Campustown; it is a vulnerable
area and needs to be protected.

Council Member Betcher said her research had revealed that East Lansing has overlay districts that
had been voted in by the neighborhoods. The overlay districts allow different things. To her, it is a
question of whether it is a stable neighborhood or is vulnerable. It is important to have a balance. She
agrees that the City needs to talk to others besides neighborhoods. She thought perhaps this could be
handled by the Campus and Community Commission.

Council Member Gartin pointed out that there appeared to be some consensus on the enforcement
side; that would not interfere with the new statute. City Manager Schainker advised that staff would
need to determine what would be involved in increasing the level of enforcement. However, the City
would continue with its annual inspections and nuisance complaint inspections. Council Member
Corrieri noted that staff could provide a report similar to what was provided for the parking
enforcement item.

Moved by Gartin, seconded by Corrieri, to direct staff to come back to Council with proposals on
increasing enforcement and inspection efforts in the following neighborhoods: SCAN, Oak to
Riverside, CCOAMS, and west of Campus.
Vote on Motion: 6-0. Motion declared carried unanimously.

Moved by Corrieri, seconded by Beatty-Hansen, to direct staff to solicit additional feedback from the
four specifically named neighborhoods as well as from the landlord association regarding the items
discussed tonight.

Council Member Orazem commented that occupancy limits should have some relationship to limiting
the adverse impacts on the neighborhood from problems with parking and safety. The Council needs
to pass a regulation that is consistent with state law, but limits the negative impacts of having rental
properties.

Vote on Motion: 6-0. Motion declared carried unanimously.

Moved by Gartin, seconded by Beatty-Hansen, requested that staff come back to Council with a memo
on a tool that allows for the creation of an overlay district for the purpose of limiting rental units and
assess what would be a healthy percentage.

Ex officio Member Rob Bingham shared that he agrees that stability is important to neighborhoods;
however, students need to live close to Campus. He believes that enforcement of some of the nuisance
issues should be increased.

Vote on Motion: 6-0. Motion declared carried unanimously.

Moved by Corrieri, seconded by Betcher, requested staff to provide information on options of
incentivizing converting rental housing back to single-family.

Ms. Corrieri noted that she would like to see what has been done in other communities. She said this
is to be done in the longer term.

Vote on Motion: 6-0. Motion declared carried unanimously.

Moved by Betcher, seconded by Beatty-Hansen, to direct staff to provide a memo to the City Council
regarding instituting a moratorium on expansion of rental properties in the RL Zone.

Council Member Nelson pointed out that the situation in Iowa City versus what is happening in Ames
might be different.

Vote on Motion: 3-3. Voting aye: Betcher, Beatty-Hansen, Corrieri. Voting nay: Gartin, Nelson,
Orazem. Motion failed.

UPDATE ON THE FATS, OILS, AND GREASE ORDINANCE IMPLEMENTATION: Water
and Pollution Control Director John Dunn introduced Dustin Albrecht, Environmental Specialist. Mr.
Albrecht gave an update to the Council on implementation of the FOG Ordinance since it was
approved by the City Council on November 24, 2014. He reviewed the time line for compliance and
showed the compliance history to date. Mr. Albrecht also noted the cost of non-compliance.

Council Member Nelson pointed out that approximately 55% of the FSEs (food service
establishments) are compliant and the other two categories (non-responsive and non-compliant)
equate to about the same.

Water and Pollution Control Director John Dunn clarified that generating money for the Utility was
not the intent; it was to reduce the damage to the City’s sewer system from fats, oils, and grease. It
appears the revenues at this point appear to be approximately $140,000 to $150,000 from the charges
for non-compliance; however, the City’s goal is to have 100% compliance. Mr. Albrecht provided
examples of the charges to an illustrative type of restaurants.

Council Member Gartin asked if it would be less expensive for restaurants to just pay the fine. Mr.
Albrecht said that, based on his research, basically it would be. Mr. Gartin questioned whether the fine
for non-compliance should be increased. He said if staff members believe that the current fee structure
is incorrect, they should come back to Council.

Director Dunn pointed out that if there is a blockage, staff would be able to see which FSEs are on
that sewer. Staff would then look at which of the establishments are in compliance.

Mr. Dunn noted that it is still early enough in the new process. He would like to see a little more time
pass before Council makes any changes.

Council Member Betcher asked if some FSEs were non-compliant because they could not afford to
put in the correct system. Mr. Albrecht replied if they don’t have a grease inceptor, they need to train
their staff on best management practices, and report back to the City.

There have been three blockages since Mr. Albrecht last addressed the Council. They were all either
right on Lincoln Way or on a side street just off of Lincoln Way. No municipal infractions were issued
at that time.

According to Director Dunn, if it is determined which FTE is responsible, the business would be
responsible for paying the municipal infraction, plus the cost of cleanup, plus the cost of damages.

Mr. Albrecht presented changes that the City Council might want to consider, specifically, dealing
with municipal infractions (establish schedule for offenses and failure to submit information) and the
use of grease interceptors in parallel/series. Some FTEs would prefer to put in more than one than one
very large one. Council Member Gartin suggested that Council just change that to allow parallel
interceptors now, instead of waiting six months. Director Dunn noted that the plan that staff is
planning to come back to Council with has a number of changes to Chapter 28; it is anticipated that
they will bring those changes to Council in October.

Mr. Albrecht recommended that training for the haulers, similar to that performed by the Des Moines
WRA, be offered. He advised that 17 of the 18 haulers (approximately 98%) who have expressed a
desire to work in Ames have gone through the Des Moines WRA training.

According to Mr. Albrecht, as a result of the Ordinance, the City has reduced fees its fees by
approximately 87%. Ames adjusted its prices to match those of other communities. It is anticipated
that the volume will increase.

COUNCIL COMMENTS: Moved by Corrieri, seconded by Gartin, to direct staff to place on an
upcoming Agenda..refer to staff the request of Carol Stasak made on behalf of her mother for an
adjustment to her utility account due to a water heater leak.
Vote on Motion: 6-0. Motion declared carried unanimously.