What?
I have Chloramine in my tapwater as well.
But your LFS said to do a PWC, treat it, wait an hour, and if you still have high ammonia levels, do another PWC? Restating that to make sure I understood what you just posted.
If that's what they suggested, I beleive they misunderstand the problem you are facing.
Your tapwater comes out about 2PPM Ammonia (According to previous figures).
If your tank was at 0PPM, and you did a 50% PWC, you'd end up at 1PPM. If you then tested the water, saw that it was high, and did another 50% PWC to correct it, you'd end up at 1.5 PPM!
You mention reading Ammonia straight from your tap- I'm not 100% sure about this, but have heard that some test kits will read Cloramine as Ammonia.
The most common suggestion I've heard was to use a dechlor such as AmQuel help with the Ammonia. Even after you cycle, that can be a fairly large ammonia spike.