AMES — The Ames City Council will consider a proposed electric rate increase, a new downtown “Sip and Stroll” district and appointments to a committee studying the environmental effects of data centers during its meeting Tuesday.
The council will discuss increasing electric rates by 2.5%, affecting monthly customer service charges and energy rates for residential, commercial and industrial customers. Demand charges for commercial and industrial customers would also increase by 2.5%.
The increase is tied to the estimated cost of the Ames Municipal Energy Center, which rose from $84 million to $192 million. The city’s financial adviser recommended annual rate increases of 2.5% instead of the previously planned 1.5% increases for the next 18 years, although future increases could change based on the project’s final cost and growth in electric demand.
The council will decide whether to direct the city attorney to prepare the ordinance needed to implement the latest increase. Time-of-use rates, currently used by 186 customers, would not change under the proposal.
Council members will also hold a public hearing on creating a downtown social district, locally called “Sip and Stroll.” During approved events, participating businesses could sell alcohol in specially marked containers that customers could carry on streets, sidewalks and other public areas within the district.
Customers could bring drinks into participating businesses with alcohol licenses that allow them but could not enter businesses without alcohol licenses.
If the ordinance is adopted Tuesday, the council will consider activating the district for Ames Main Street’s Witches Walk from 6 to 8 p.m. Oct. 8. Nineteen alcohol vendors plan to participate, and Ames Main Street has agreed to hire an Ames police officer to help monitor the district.
The Planning and Zoning Commission recommended that the council consider limits on the number, length and frequency of social district events. Each activation would require separate council approval.
The council is also expected to appoint 15 residents to a committee studying potential data center impacts on human health, wildlife, water, energy use, noise and localized temperatures. The city received 54 applications for the committee after delaying a decision on the proposed Lightedge data center near the Ames Municipal Airport until May 2027.
Another discussion will focus on whether Ames should spend $116,500 to study Lincoln Way between Grand Avenue and University Boulevard. The study would examine crashes, vehicle speeds, lighting, pedestrian crossings and traffic operations along the 0.7-mile stretch.
The council will also hold a hearing on plans for up to 97 homes near Ontario Street and Scholl Road. The proposed development includes 26 detached houses and 71 townhomes on 17.4 acres of previously undeveloped land.
The council will discuss its full agenda Tuesday at Ames City Hall, following the Ames Area Metropolitan Planning Organization meeting, which begins at 6 p.m.