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OFFICE OF THE CITY CLERK
COUNCIL MINUTES
April 20, 2026
The City Council of the City of Mesa met in the Study Session room at City Hall, 20 East Main Street, on
April 20, 2026, at 5:17 p.m.
COUNCIL PRESENT
COUNCIL ABSENT
OFFICERS PRESENT
Mark Freeman
Scott Somers
Rich Adams
Jennifer Duff
Alicia Goforth*
Francisco Heredia
Dorean Taylor*
None
Scott Butler
Holly Moseley
Jim Smith
(*Participated in the meeting through the use of video conference equipment.)
Mayor Freeman conducted a roll call.
1.
Review and discuss items on the agenda for the April 20, 2026, regular Council meeting.
All of the items on the agenda were reviewed among Council and staff and the following was
noted:
Conflict of interest: None
Items removed from the consent agenda: 5-e
In response to a question from Councilmember Goforth regarding Item 4-b, (Mesa Public Safety
Communications - Pre-Construction Services and Construction Manager at Risk (CMAR)
(District 1)), on the Regular Council Meeting agenda, City Engineer Lance Webb explained that
the CMAR for the 911 communications center project was selected through the City of Mesa’s
(COM) standard Title 34 competitive procurement process, which he described in detail. He stated
the proposed contract is for pre-construction services leading to the development of a guaranteed
maximum price (GMP), which will be brought back to Council for consideration. He pointed out
that the construction management fee will be established as part of the GMP. He noted that design
is approximately 30% complete, the authorized bond amount for the project is approximately $54
million, and construction is anticipated to begin in approximately one year. He discussed the
benefit of using the same contractor for the adjacent Fire Station 223 project and the 911
communications center project to identify efficiencies, shared infrastructure opportunities, and
potential cost savings.
Study Session
April 20, 2026
Page 2
2-a.
Hear a presentation, discuss, and provide direction on the Energy Resources Department budget.
Energy and Sustainability Director Scott Bouchie introduced Senior Fiscal Analyst John Petrof
and displayed a PowerPoint presentation. (See Attachment 1)
Mr. Bouchie provided the Energy Resources Department’s public purpose and confirmed that the
department’s work aligns with the COM’s priority of quality development and a thriving community.
He discussed that the department is focused on stabilizing and reducing costs by providing
customers with predictable, low-cost energy while maintaining reliable electric and natural gas
service. He noted that reliability depends on ensuring employees have the education, training,
and equipment needed to perform their work effectively. He highlighted the ongoing succession
planning and cross-training efforts to develop future leaders, increase organizational depth, and
build a more resilient utility prepared to meet future service needs. (See Pages 2 and 3 of
Attachment 1)
Mr. Bouchie described the efforts to reduce and stabilize electric costs, including the use of
reverse auctions for short-duration energy contracts, which have reduced costs by approximately
$20 to $90 per megawatt hour and have provided direct savings to customers. He summarized
the Parker-Davis voluntary reduction program, which allows the COM to use lower-cost alternative
energy sources when available, saving customers approximately $600,000 since the program
began in July. He noted that the department is increasing competition for power contracts by
expanding the number of counterparties available for power trading, as part of its overall hedging
strategy to reduce market exposure and maintain predictable, low-cost energy supplies. (See
Page 4 of Attachment 1)
Mr. Bouchie stated that the department uses hedging strategies and fixed-price natural gas
contracts with terms ranging from one to ten years to help stabilize costs. He reported that
beginning in May 2026, the COM will participate in a municipal utility program expected to save
approximately 10 cents per dekatherm on base-load service, resulting in an estimated $164,000
in savings. He highlighted several utility award recognitions, including a 2025 Certificate of
Excellence in Reliability recognizing the COM among the top 25% of public utilities nationwide for
reliability, and a diamond-level safety award. (See Pages 5 and 6 of Attachment 1)
Mr. Bouchie reviewed the system average interruption duration index (SAIDI), which measures
the average length of time customers experience power outages. He explained that the COM’s
target is based on a rolling 10-year average and noted that recent outages were primarily due to
issues such as an underground fault, tree contact with lines, and vehicle collisions with poles. He
stated that the COM continues to compare favorably with other Arizona utilities and that the data
reflects strong reliability, stable performance, and a well-maintained electric utility system. (See
Pages 7 and 8 of Attachment 1)
Mr. Bouchie reported the gas emergency response time measures and the goal of responding to
calls in less than 30 minutes, noting that the department meets this goal more than 95% of the
time. He identified the most common calls and stated that emergency response staff undergo
approximately one year of training before responding independently due to the complexity and
urgency of these calls. He emphasized the resiliency of the gas utility and pointed out that the
City’s electric energy portfolio is 57% renewable and diversified through multiple low-cost
contracts, which helps reduce dependence on any single provider. He highlighted the use of
renewable natural gas produced at the Northwest Water Reclamation Plant, and stated that from
December 2025 through March 2026, 16% of solid waste fueling came from gas that was cleaned
to pipeline standards and used in solid waste vehicles. (See Pages 9 and 10 of Attachment 1)
Study Session
April 20, 2026
Page 3
Mr. Petrof provided an overview of expenditures and budget projections. He advised that electric
operations and maintenance expenditures were approximately $464,000 underbudget and gas
operations and maintenance expenditures were approximately $275,000 underbudget, primarily
due to vacancy savings. He reported that the Fiscal Year (FY) 2025/26 electric operations and
maintenance are projected to end approximately $400,000 underbudget due to personnel
services savings, fleet cost savings, and lower material costs. He added that gas operations and
maintenance are projected to end approximately $200,000 underbudget due to vacancy savings
and lower-than-anticipated costs for the Fiber to the Premises (FTTP) project. He confirmed that
the proposed FY 2026/27 operations and maintenance budgets include an increase of
approximately $300,000 for electric, due to a one-time AMI outage software payment and
proposed merit increases, as well as an increase of approximately $300,000 for gas, due to merit
and fleet cost increases. (See Page 11 of Attachment 1)
Mr. Petrof reviewed energy supply costs, pointing out that FY 2024/25 electric supplies were
approximately $600,000 underbudget, and gas supplies were approximately $3.2 million
underbudget. He reported that electric supplies for FY 2025/26 are expected to be near budget,
while gas supplies are projected to be approximately $6.1 million underbudget due to warmer-
than-usual winter weather, supply contract pricing, and lower market prices. He noted that the
proposed FY 2026/27 supply budgets include $23.3 million for electric and $16.1 million for gas.
(See Page 12 of Attachment 1)
Mr. Petrof outlined the proposed department reductions totaling approximately $263,000,
including eliminating the college intern program, reducing utility locating temporary staff as the
fiber project concludes, absorbing overtime within electric transmission and distribution
maintenance vacancy savings, and increasing retained revenue from developer deposits by 2%,
resulting in approximately $60,000 in additional revenue. (See Page 12 of Attachment 1)
Responding to a question from Mayor Freeman, Mr. Bouchie recalled that the COM serves
approximately 19,000 electric and 80,000 natural gas customers. He emphasized employee
retention and commented that the department competes with regional utility providers such as
Southwest Gas, SRP, and APS for skilled employees. He confirmed that while pay
competitiveness remains important, the COM offers stable employment, strong benefits, career
development, succession planning, and opportunities for employees to gain broad experience
and advance within the organization.
Mayor Freeman thanked staff for the presentation.
2-b.
Hear a presentation, discuss, and provide direction on Memorandum of Understanding for fiscal
years 2026 through 2029 with the Mesa Police Association and with the United Mesa Fire Fighters
Association.
Assistant City Manager Ken Cost displayed a PowerPoint presentation. (See Attachment 2)
Mr. Cost reviewed the proposed memorandum of understanding (MOU) effective July 2026
through June 2029. He stated that public safety remains a top priority for the COM and that
compensation is reviewed against comparable market cities to support recruitment and retention.
He explained that the proposed agreement includes a 3% market adjustment for the ranks of
firefighter, engineer, and captain, as well as eligibility for a 5% merit increase each year during
the term of the MOU. (See Page 2 of Attachment 2)
Study Session
April 20, 2026
Page 4
Responding to a question from Mayor Freeman, Mr. Cost reported that while individual ranking
among market cities may vary by position and top-out pay, the COM’s public safety compensation
remains generally within approximately 1% of comparable agencies. He stated that the focus is
on remaining competitive with the market average, rather than ranking first in every category and
that additional benchmarking will occur in future years, with potential market adjustments of up to
3% to maintain competitiveness. He emphasized that total compensation includes not only wages,
but also the City’s competitive benefits package, including wellness and medical benefits.
Mr. Cost stated that the same market analysis had been completed for the Police Department.
He confirmed that the proposed adjustment includes a 3.3% market adjustment for police officers
and the entry level of the sergeant range, and a 4% adjustment at the top of the sergeant range.
He explained that police officers and sergeants will also be eligible for a 5% merit increase during
the term of the MOU. He added that additional market benchmarking will be conducted in spring
2027, with any resulting adjustment effective July 2027, and that a second salary adjustment may
occur effective July 1, 2028, based on current benchmark cities, in an amount up to, but not
exceeding, 3%. (See Pages 3 and 4 of Attachment 2)
Mr. Cost provided an overview of additional compensation items for Police and Fire personnel.
He referred to patrol incentive pay for the Police Department and stated that it supports retention
of experienced officers in patrol assignments to assist with training and mentoring newer officers.
He noted increases related to uniform allowances due to rising equipment costs, as well as special
assignment pay for advanced training and aviation-related duties, including helicopter and drone
operations. (See Page 5 of Attachment 2)
Mr. Cost reviewed the additional provisions for Fire personnel and highlighted fitness incentive
pay for employees who meet top-tier medical evaluation standards. He confirmed that the
program supports the department’s focus on physical fitness and has shown positive results. He
reviewed uniform allowances for recruits upon academy graduation and the continuation of cancer
screening services. (See Page 6 of Attachment 2)
Office of Management and Budget Director Brian Ritschel provided the financial impact of the
proposed MOU on the General Governmental Fund forecast. He stated that the proposed budget
initially achieved positive net sources and uses; however, when the impact of the memorandum
of understanding is included, net sources and uses become negative in FY 2029/30, shifting from
a positive $1.8 million to a negative $8.4 million. He noted that FY 2030/31 decreases from a
positive $13.7 million to a positive $3.4 million. He explained that the FY 2028/29 benchmark
adjustment result is an additional $10 million impact, increasing the negative net sources and
uses from $22 million to $32 million. He confirmed that overall, the MOU has an approximate $40
million impact on the ending reserve balance over the forecast period, reducing the projected
ending fund balance from approximately $160.9 million to $121 million. He noted that this impact
is in addition to the prior year’s public safety benchmarking adjustment, which was approximately
$20 million ongoing. (See Page 7 of Attachment 2)
City Manager Scott Butler commented on the collaborative process used to develop the MOU and
expressed appreciation for the partnership with the United Mesa Firefighters Association and
Mesa Police Association. He stated that while all parties may not agree on every issue, the
process resulted in a compromise that recognizes the COM’s constraints while addressing
employee concerns. He emphasized that the proposed agreement is market-driven and supports
the COM’s priority of public safety by helping recruit and retain trained police officers and
firefighters and pointed out the importance of investing in employee health and safety through
incentives, cancer screenings, and other proactive measures. He acknowledged that maintaining
Study Session
April 20, 2026
Page 5
competitiveness requires significant investment and affects both the General Fund and Public
Safety Sales Tax Fund and emphasized that these investments are necessary to retain high-
quality public safety employees in Mesa. He confirmed that additional budget information would
be brought back to Council during the April 30 budget wrap-up discussion.
Mayor Freeman expressed support for maintaining competitive compensation and strong
retention efforts for public safety employees. He emphasized the importance of health and
wellness resources, including peer support, particularly in light of recent firefighter and police
memorials and firefighter deaths. He reiterated that public safety remains a non-negotiable priority
and acknowledged the need for continued collaboration between the COM and labor associations
to balance costs while meeting the needs of public safety personnel.
Mayor Freeman thanked staff for the presentation
3.
Acknowledge receipt of minutes of various boards and committees.
3-a.
Board of Adjustment Public Hearing meeting held on February 4, 2026.
3-b.
Board of Adjustment Study Session meeting held on February 4, 2026.
3-c.
Planning and Zoning Board Special meeting held on March 11, 2026.
3-d.
Planning and Zoning Board Public hearing held on March 11, 2026.
3-e.
Planning and Zoning Board Study Session held on March 11, 2026.
It was moved by Councilmember Heredia, seconded by Vice Mayor Somers, that receipt of the
above listed minutes be acknowledged.
Upon tabulation of votes, it showed:
AYES – Freeman–Somers–Adams–Heredia–Duff–Goforth–Taylor
NAYS – None
Carried unanimously.
4.
Current events summary including meetings and conferences attended.
There were no reports on meetings and/or conferences attended.
5.
Scheduling of meetings.
City Manager Scott Butler stated that the schedule of meetings is as follows:
Thursday, April 30, 2026, 7:30 a.m. – Study Session
6.
Adjournment.
Without objection, the Study Session adjourned at 6:10 p.m.
Study Session
April 20, 2026
Page 6
____________________________________
MARK FREEMAN, MAYOR
ATTEST:
_______________________________
HOLLY MOSELEY, CITY CLERK
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Study Session
of the City Council of Mesa, Arizona, held on the 20th day of April 2026. I further certify that the meeting
was duly called and held and that a quorum was present.
_______________________________
HOLLY MOSELEY, CITY CLERK
sr
(Attachment – 2)
Energy Resources
April 20, 2026
Scott Bouchie; Energy and Sustainability Director
John Petrof; Senior Fiscal Analyst
Fiscal Year 2026/27
Study Session
April 20, 2026
Attachment 1
Page 1 of 14
Public Purpose
The Energy Resources Department exists to sustainably procure and
deliver natural gas and electric power through a safe and reliable
infrastructure with predictable, affordable prices aligning with
Mesa’s priority of quality development and a thriving community
2
OUTCOMES-base of kpis
HOW WE ALIGN TO THE PRIORITIES
WHY WE EXIST
Study Session
April 20, 2026
Attachment 1
Page 2 of 14
Stabilize and reduce supply costs
Meet customer needs
• Ensuring reliability of Natural Gas and Electric service
• Staffing
Provide opportunities for staff within department
• Succession Planning
• Cross Training
Resiliency
Outcome Areas
3
3
Study Session
April 20, 2026
Attachment 1
Page 3 of 14
Reduce & Stabilize Costs – Electric Resources
4
4
Efforts to Reduce Electric Resources Costs
Reverse Auction
• Mesa capped cost per MWh; counterparties underbid each other
• November 2025
Parker-Davis Voluntary Reduction Program
• Option to receive payments instead of hydropower if financially beneficial
• Began July 2025
Increase counterparties with which Mesa is enabled to trade power
• Increase competition to potentially reduce power costs
Reduced Market Exposure
• Implement staggered (rolling) expiration dates for electric purchase contracts to minimize exposure to
market volatility
Study Session
April 20, 2026
Attachment 1
Page 4 of 14
Reduce & Stabilize Costs – Natural Gas Resources
5
5
Efforts to Reduce Natural Gas Resources Costs
Prepay Program
• Participate in purchasing opportunities available exclusively to municipally owned gas distribution system
• Achieve a savings of $0.10 per dekatherm on 4,500 Dth per day, beginning May 2026
Fixed-Price Natural Gas Contracts
• Lock in fixed pricing for approximately 70% of annual natural gas usage, ensuring stable and predictable
costs
Reduced Market Exposure
• Implement staggered (rolling) expiration dates for natural gas purchase contracts to minimize exposure to
market volatility
Study Session
April 20, 2026
Attachment 1
Page 5 of 14
Utility Awards
Natural Gas
• APGA SOAR Award – Silver Level Designation, 2025-2027
Electric
• APPA RP3 Designation. Platinum Member 2026-2029
• 2025 Certificate of Excellence in Reliability
• APPA Safety Award – Diamond 2025
Highlights and Accomplishments
6
6
Study Session
April 20, 2026
Attachment 1
Page 6 of 14
Outage Duration - SAIDI
7
7
Study Session
April 20, 2026
Attachment 1
Page 7 of 14
Outage Duration - SAIDI
8
8
Study Session
April 20, 2026
Attachment 1
Page 8 of 14
Gas Emergency Response Time - Mesa
9
9
Study Session
April 20, 2026
Attachment 1
Page 9 of 14
Resiliency
10
18%
2%
2%
14%
21%
43%
Percentage Renewable /
Traditional Power
Fiscal Year 27-28
Hydropower (up to 15 MW)
City Solar (3.62 MW)
Customer Solar (2.2 MW)
SRP Renewables (16 MW)
Utility Scale Solar (25 MW)
Traditional Power (mixed fuels, various MW)
38,044
6,088
Transportation CNG Used by Mesa
(December 2025 to March 2026)
Clean Energy supplied RNG (MMBTU)
Mesa Produced RNG (MMBTU)
Study Session
April 20, 2026
Attachment 1
Page 10 of 14
Department Financial Summary
11
Figures in millions,
rounded
11
Core Business Process
Energy Resources
FY 24/25
Year End
Actuals
FY 25/26
Revised
Budget
FY 25/26
Year End
Estimate
FY 26/27
Proposed
Budget
Expenditures
Electric Operations and
Maintenance
$6.4
$7.1
$6.7
$7.4
Gas Operations and
Maintenance
$14.4
$16.0
$15.8
$16.3
Expenditures Total:
$20.8
$23.1
$22.5
$23.7
Energy Supply
Planning and Acquisition
of Electric Energy Supplies
$31.3
$25.2
$25.2
$23.3
Planning and Acquisition
of Natural Gas Supplies
$14.3
$17.8
$11.7
$16.1
Total
$66.4
$66.1
$59.4
$63.1
Study Session
April 20, 2026
Attachment 1
Page 11 of 14
Reduction in Temp Services - Administrative
• Eliminate college intern program - $50,000
• Reduce utility locating temps - $113,353
Reduction in Overtime Hours – Service
• Electric Transmission & Distribution Maintenance - $40,000
New Revenue - Administrative
• Increase retained revenue for developer deposits from 8% to 10% - $60,000
Base Budget Reduction(s)
12
Total Reductions: $263,353
12
Study Session
April 20, 2026
Attachment 1
Page 12 of 14
FY 26/27 Budget Reduction Summary
Reduction
Additional
Income
Reduction
Amount
Total
Fund
Reduction in Temp
Services
N/A
$163,353
$163,353
Utility
Reduction in Overtime
Hours
N/A
$40,000
$40,000
Utility
Increase in Developer
Cash Contributions
$60,000
N/A
$60,000
Utility
Total
$60,000
$203,353
$263,353
13
13
Study Session
April 20, 2026
Attachment 1
Page 13 of 14
14
Study Session
April 20, 2026
Attachment 1
Page 1 of 14
Memorandum of
Understanding
Mesa Police Association and United Mesa Fire Fighters
Association
Term July 2026-June 2029
Study Session
April 20, 2024
Attachment 2
Page 1 of 9
Fire-Compensation
• Average analysis conducted for market cities
• Agreed upon market adjustments (effective July 2026):
• Rank of Firefighter, Engineer and Fire Captain: 3%
• Firefighter, Engineer and Fire Captain will be eligible for up to
a 5% merit “step” increase for all three fiscal years
Study Session
April 20, 2024
Attachment 2
Page 2 of 9
PD Compensation
• Average analysis conducted for market cities
• Agreed upon market adjustments (effective July 2026):
• Rank of Police Officer: 3.3%
• Rank of Sergeant: 3.3% (min) and 4% (max)
• Officers and Sergeants will be eligible for up to a 5% merit
“step” increase for all three fiscal years
Study Session
April 20, 2024
Attachment 2
Page 3 of 9
Compensation
• Additional market analysis will be conducted in Spring of 2027
and implemented in July 2027
• Effective July 1, 2028, the City will provide a salary adjustment
to the market average not to exceed three percent (3%), based
on the current benchmark cities
Study Session
April 20, 2024
Attachment 2
Page 4 of 9
Additional Provisions-
Police
• Patrol Incentive Pay
• Uniform allowance increase
• Special assignment pay for advanced training and aviation
Study Session
April 20, 2024
Attachment 2
Page 5 of 9
Additional Provisions-
Fire
• Fitness Incentive Pay
• Uniform allowance increase for recruits graduating from academy
• Cancer screening
Study Session
April 20, 2024
Attachment 2
Page 6 of 9
7
General Governmental Funds – FY 26/27
Study Session
April 20, 2024
Attachment 2
Page 7 of 9
Questions?
Study Session
April 20, 2024
Attachment 2
Page 8 of 9
Study Session
April 20, 2024
Attachment 2
Page 9 of 9