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OFFICE OF THE CITY CLERK COUNCIL MINUTES June 8, 2026 The City Council of the City of Mesa met in the Council Chambers at City Hall, 20 East Main Street, on June 8, 2026, at 5:53 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 Mayor’s Welcome. Mayor Freeman conducted a roll call. Invocation by Pastor Richard Cornejo of Victory Outreach Mesa. Pledge of Allegiance was led by Jaden Smith of Boy Scout Troop 54. Mayor Freeman recognized the Turkish national soccer team and welcomed them to Mesa. He noted that the team will be training at Arizona Athletic Grounds in preparation for the Fédération Internationale de Football Association (FIFA) tournament. 1. Take action on all consent agenda items. All items listed on the agenda with an asterisk (*) are on the consent agenda which means they will be considered by the City Council as a group, without any separate discussion of these items, unless a Councilmember or citizen requests the item be removed from the consent agenda to be considered separately. If a citizen wants an item removed from the consent agenda, a request must be made prior to the scheduled start time of the meeting. It was moved by Vice Mayor Somers, seconded by Councilmember Heredia, that the consent agenda items be approved. Upon tabulation of votes, it showed: AYES – Freeman–Somers–Adams–Duff–Goforth–Heredia–Taylor NAYS – None Carried unanimously. Regular Council Meeting June 8, 2026 Page 2 *2. Approval of minutes of previous meetings as written. Minutes from the Regular Council meeting held on June 1, 2026. 3. Take action on the following liquor license applications: *3-a. Aguila's Hidaway Lil' Drummer A bar is requesting the ownership transfer of an existing Series 6 Bar License for Lil Drummer LLC, 1211 North Country Club Drive, Suite 9 - Javier Jimenez Aguila, agent. The existing license held by A Pleasant Affair LLC will revert to the State for modification. (District 1) *3-b. Angry Crab Shack A restaurant that serves lunch and dinner is requesting a new Series 12 Restaurant License for ACF North Mesa LLC, 1927 North Gilbert Road, Suite 13 - Jeffrey Craig Miller, agent. There is no existing license at this location. (District 1) *3-c. Tailgate Bar & Grill A bar is requesting the ownership transfer of an existing Series 6 Bar License for Wayne Michael LeJambre, sole proprietor, 1762 South Greenfield Road, Suite 111-112. There is no existing license at this location. (District 2) *3-d. Holiday Inn Express & Suites A hotel is requesting a new Series 10 Beer and Wine Store License for Dolce Vita Hotels Arizona LLC, 1405 South Westwood - Kevin Arnold Kramber, agent. The existing license held by MK Mesa Hotels LLC will revert to the State. (District 3) *3-e. Boulders on Southern A restaurant that serves lunch and dinner is requesting a new Series 12 Restaurant License for Commons LLC, 1010 W Southern Ave, Suite 1 - Justin Tyler Bucknell, agent. The existing license held by Ascenders LLC will revert to the State. (District 3) *3-f. Oro Brewing Company A bar is requesting a new Series 7 Beer and Wine Bar License for Oro Brewing Company LLC, 210 West Main Street - David Lawrence Valencia, agent. The existing Series 7 Beer & Wine Bar License held by Oro Brewing Company LLC will remain active at the location. Once issued, the new Series 7 Beer & Wine Bar License will be put in non-use (inactive) status until it is either sold or transferred to another location. (District 4) *3-g. Quick Corner #2 A convenience store is requesting a new Series 10 Beer and Wine Store License for KL Mart LLC, 66 South Mesa Drive - Anurag Khare, agent. The existing license held by Go & Grab LLC will revert to the State. (District 4) Regular Council Meeting June 8, 2026 Page 3 *3-h. Jao Sua A restaurant that serves lunch and dinner is requesting a new Series 12 Restaurant License for Jao Sua Mesa LLC, 17 West Main Street - James Chayanonda Doyle, agent. There is no existing license at this location. (District 4) *3-i. Siplxix A farm winery is requesting a new Series 13 Farm Winery License for Siplxix LLC, 502 West 3rd Avenue, Suite 5 - Cory Lee Jensen, agent. There is no existing license at this location. (District 4) *3-j. BrkThrough An interactive entertainment venue with a bar that is requesting a new Series 7 Beer and Wine Bar License for BrkThrough Cannon Beach LLC, 4551 South Power Road, Suite 133 - Keith Brian Turner, agent. There is no existing license at this location. (District 6) *3-k. 7-Eleven #42635H A convenience store is requesting a new Series 10 Beer and Wine Store License for 7- Eleven Inc., 3615 South Power Road - Andrea Dahlman Lewkowitz, agent. There is no existing license at this location. (District 6) *3-l. Tastea Pho Banh Mi Café A restaurant that serves lunch and dinner is requesting a new Series 12 Restaurant License for Pho Banh Mi Café Corporation, 3442 South Ellsworth Road, Suite 101-102 - Nicholas Truong Nguyen, agent. There is no existing license at this location. (District 6) *3-m. Makoto Sushi A restaurant that serves lunch and dinner is requesting a new Series 12 Restaurant License for Makoto Sushi LLC, 1545 South Power Road, Suite 116 - Li Zhang, agent. The existing license held by Mesa Sakura Sushi Inc. will revert to the State. (District 6) 4. Take action on the following contracts: *4-a. One-Year Term Contract with Four-Year Renewal Options for Electric Utility Distribution Transformers for the Materials and Supply Warehouse (for the Energy Resources Department). (Citywide) This contract will establish a list of qualified, pre-approved vendors for electric utility distribution transformers, including pole-mounted, pad-mounted, and submersible transformer configurations used throughout the City of Mesa electric distribution system. A committee representing the Energy Resources and Engineering Departments and Procurement Services evaluated responses and recommend awarding the contract to the highest scored proposals from Alpha Plotter NC, Inc.; Kllen Group America, Inc.; Magnetron USA, LLC; and Wesco, Inc. dba Anixter, Inc. in a combined total amount not to exceed $10,910,000 annually, with an annual increase allowance of up to 5% or the adjusted Consumer Price Index. Regular Council Meeting June 8, 2026 Page 4 *4-b. Three-Year Term Contract with Two-Year Renewal Options for Hazardous Facility Operational Support for the Solid Waste Department. (Citywide) This contract supports the City of Mesa’s Household Hazardous Materials (HHM) Facility by providing disposal services for hazardous waste materials, on-site staffing services as needed, and necessary equipment supplies. The HHM Facility operates as a drive through service for eligible residents, where staff check in customers, unload vehicles, sort materials, and perform other operational duties. A committee representing the Solid Waste and Environmental and Sustainability Departments and Procurement Services evaluated responses and recommend awarding the contract to the highest scored proposal from Clean Harbors Environmental Services, Inc. in an amount not to exceed $285,000 annually, with an annual increase allowance of up to 5% or the adjusted Consumer Price Index. *4-c. Dollar Limit Increase to Use of the Cooperative Term Contract for Route Planning and Management Solutions as Requested by the Solid Waste Department and Department of Innovation and Technology. (Citywide) A dollar limit increase is needed to implement an AI-enabled camera system. Solid Waste currently utilizes external, legacy vehicle camera systems to support safe fleet operations; however, the existing system no longer meets operational needs. The Samsara system provides improved image quality, real-time AI alerts to the Solid Waste driver for pedestrians and hazards, and cloud-based video storage and access, which eliminates the need to physically retrieve and reinstall hard drives from vehicles to view video, which is currently required with the existing, labor-intensive system. The Solid Waste Department, Department of Innovation and Technology, and Procurement Services recommend increasing the original dollar limit with Wastech Corp./Routeware, Inc. by an additional amount of $480,320, which includes $138,375 for installation services and $341,945 for two and half years of annual subscription fees for a revised total contract amount not to exceed $807,820. *4-d. Purchase of Solar-Powered Portable Traffic Signal Trailers for the Transportation Department (Sole Source). (Citywide) This purchase will provide a Solar-Powered Portable Traffic Signal System to support the City of Mesa’s ongoing commitment to public safety, effective traffic management, and efficient roadway operations. The system will serve as a temporary traffic control solution at locations requiring enhanced safety measures or operational flexibility, particularly in areas with increased commercial vehicle activity or shifting traffic patterns. The Transportation Department and Procurement Services recommend awarding the contract to the sole source vendor, OMJC Signal, in an amount not to exceed $315,000. *4-e. Aripine Park & Whitman Park Playground Renovation, Design-Bid-Build Contract. (Districts 1 and 4) This project will furnish and install new playground equipment, shade structures, site amenities, concrete ramps and new playground surfacing to the existing and new playgrounds at designated areas in each park. Sidewalk ramps, new engineered wood fiber, and new poured-in-place seamless rubber play surfacing will improve safety and Regular Council Meeting June 8, 2026 Page 5 make the playgrounds more accessible. Additional amenities to be installed include benches, new lighting, and trash receptacles. Staff recommend awarding a contract for this project to the lowest responsible bidder, Valley Rain Construction Corp, in the amount of $1,271,188.26, and authorizing a change order allowance in the amount of $127,118.83 (10%), for a total authorized amount of $1,398,307.09. This project is funded by federal funding through the Community Development Block Grant Program (CDBG) granted through the Housing and Community Development Department. 5. Take action on the following resolutions: *5-a. A resolution approving and authorizing the City Manager to enter into a Lease Agreement to operate, manage, and program a downtown restaurant and food business incubator at the City-owned property located at 111 West Main Street. (District 4) – Resolution No. 12543 *5-b. See: Items not on the Consent Agenda *5-c. See: Items not on the Consent Agenda *5-d. Approval of a Fiber Access Agreement with the City of Apache Junction for Information Technology and Related Services. (District 5) – Resolution No. 12546 *5-e. Approving and authorizing the City Manager to enter into a Foreign-Trade Zone Operator Agreement for U.S. Foreign-Trade Zone 221 with MGC Pure Chemical America, Inc., to activate and operate a chemical manufacturing facility including foreign- trade zone activities at 6560 South Mountain Road. (District 6) – Resolution No. 12547 *5-f. A resolution approving and authorizing the City Manager to enter into an Intergovernmental Agreement (IGA) between the City of Mesa and the State of Arizona on behalf of the Superior Court of Arizona, in and for the County of Maricopa (“Superior Court”), for the Mesa Municipal Court’s use of jury administration infrastructure and related jury services offered by the Superior Court. The City of Mesa and the State of Arizona have maintained intergovernmental agreements for jury administration infrastructure and related jury services for the Mesa Municipal Court since prior to 2000. The purpose of the IGA is to allow the Mesa Municipal Court to continue to utilize the Superior Court’s established jury administration infrastructure and related jury services system rather than creating and maintaining a separate full-service jury operation internally. (Citywide) – Resolution No. 12548 Items not on the Consent Agenda 5-b. Approving and authorizing the City Manager to enter into a funding agreement with Valley Metro Rail, Inc., for the current light rail operations in the City of Mesa. The estimated cost of service for operations, maintenance and facility landscaping of the existing light rail line for fiscal year 2026/27 is $21,148,000. The City anticipates receiving $2,866,000 in light rail fares, advertising, preventive maintenance grant and Arizona Lottery Funds for a net impact to the City’s General Fund of $18,282,000. (Districts 3 and 4) – Resolution No. 12544 Noah James Markham, a Tempe resident, spoke in support of the light rail. He shared that the light rail provides access to safe transportation and relief from the heat and urged the Council to Regular Council Meeting June 8, 2026 Page 6 consider accessibility and the daily challenges faced by vulnerable residents when voting on this item. (Motion for Item 5-b was made following the comments received on both agenda items.) 5-c. Approving and authorizing the City Manager to enter into an amendment to Intergovernmental Agreement with the Regional Public Transportation Authority (RPTA) for fixed-route bus, paratransit and RideChoice, services approved by the City Council on January 26, 2026, for FY 25/26. The estimated cost of transit services for FY26/27 is $41,409,954. Public Transportation Funds (PTF) from Propositions 400 and 479 will fund $35,886,106 and the City's General Fund will fund $5,523,848. (Citywide) – Resolution No. 12545 David Winstanley, a Mesa resident, addressed the Council in opposition to the proposed agreement with RPTA. He voiced concern regarding the City’s fixed-route bus transit service agreement and questioned whether Mesa is receiving sufficient value for its investment, citing recent increases in direct and indirect costs, low farebox recovery, and a high taxpayer subsidy. Noah James Markam, a Tempe resident, expressed support for fixed-route bus, paratransit and RideChoice services. Councilmember Taylor spoke in opposition to the proposed funding agreement for light rail operations. She expressed concern regarding the long-term financial responsibility placed on Mesa taxpayers, noting that a small percentage of residents use light rail while the City continues to subsidize a significant portion of operating and maintenance costs. She stated that Proposition 479 includes a fare recovery requirement and expressed concern that, when fare recovery metrics are not met, Mesa taxpayers are responsible for covering the difference. She questioned the cost effectiveness of light rail compared to bus service, stating that buses provide greater route flexibility at a lower cost. She also raised concerns that the City is obligated to continue funding light rail without a clear exit strategy and suggested that the City explore stopping future expansion, renegotiating the cost-sharing formula in the intergovernmental agreement, and considering whether funds could be redirected to bus service. In response to a question from Councilmember Adams, City Attorney Jim Smith explained that the City is party to several agreements related to Valley Metro, including an intergovernmental agreement, bylaws, and a master agreement for maintenance. He stated that the agreements include withdrawal provisions, but withdrawal is difficult and would require approval from the other participating municipalities, payment of costs, and a penalty. He added that, unless the other entities agreed to amend the agreements, the City would remain responsible for its costs and could lose voting rights and representation. Councilmember Adams stated that he was not advocating for or against light rail and emphasized that the matter was a contractual obligation approved by a previous Council. He stressed that defaulting on an agreement could affect the City’s credibility and expose it to litigation. He noted that exploring amendments to the current agreement would be a separate policy discussion and advised that defaulting was not an appropriate way to proceed. Councilmember Goforth acknowledged concerns regarding costs and cost recovery and reiterated that the issue before Council was whether to fulfill an existing legal obligation and that voting no could place the City in breach of that obligation and potentially expose taxpayers to additional financial liability, particularly without an agreed-upon alternative plan. She expressed support for fulfilling the City’s legal obligation. Regular Council Meeting June 8, 2026 Page 7 Councilmember Duff pointed out that Proposition 479 was voter-approved and clearly included funding for transit. She expressed support for public transit and the benefits it provides, stating that Mesa should continue striving to be a multimodal city that serves all residents. She noted that public services, including parks, libraries, and public safety, are subsidized for the greater good and stated that transit should be viewed similarly as a public benefit. She added that transit is important to affordable housing, economic development, and the continued growth of Mesa. She confirmed that significant housing and development have occurred along the light rail corridor and stated that transit supports density, reduces the need for additional parking, and contributes to the overall composition and long-term vitality of the city. Councilmember Heredia stated that transit funding supports Mesa residents, including those who use public transportation for school, medical appointments, groceries, work, and other daily needs. He noted that a majority of voters approved Proposition 479 to continue investing in regional transportation, including streets, freeways, and transit. He acknowledged the need to better track light rail utilization and benefits, and stated that Valley Metro continues to review budgets, contracts, bus operations, and route redesigns to improve efficiency and maximize service. He emphasized that Mesa remains part of a car-dominant region, but transit provides important options for residents who do not have access to a vehicle and expressed support for continuing to provide and improve transit options in Mesa and throughout the region. Councilmember Taylor emphasized the Council’s responsibility of financial stewardship to taxpayers and expressed concern that the City is legally and financially obligated to continue funding light rail. She voiced support for multimodal transportation options, including paratransit. Councilmember Duff recalled that Maricopa County voters have continued to approve the transportation tax and emphasized the importance of supporting public transportation to meet the needs of the community. She stated that transit serves a broad cross-section of residents for many different reasons and expressed concern about the negative stigma associated with public transit. It was moved by Councilmember Heredia, seconded by Councilmember Duff, that Resolution No. 12544 be adopted. Upon tabulation of votes, it showed: AYES – Freeman–Somers–Adams–Duff–Goforth–Heredia NAYS – Taylor Mayor Freeman declared the motion carried by majority vote. It was moved by Vice Mayor Somers, seconded by Councilmember Adams, that Resolution No.12545 be adopted. Upon tabulation of votes, it showed: AYES – Freeman–Somers–Adams–Duff–Goforth–Heredia NAYS – Taylor Mayor Freeman declared the motion carried by majority vote. Regular Council Meeting June 8, 2026 Page 8 6. Items from citizens present. James Beck, a Mesa resident, expressed concern regarding the proposed NTT data center campus and its potential impacts on City infrastructure, the power grid, land use, the environment, and residents’ quality of life. He suggested that additional studies, public transparency, and greater scrutiny take place before approval, stating that growth should be responsible and supported by data demonstrating long-term benefits to Mesa residents. Nathan Taylor Taft, a Mesa resident, spoke in opposition to the proposed NTT data center and discussed the impact that data centers pose on water resources, the local economy, and residents. He pointed out that data centers use significant amounts of water, provide limited long-term jobs, and may leave the community with costly infrastructure impacts. He also raised concerns about corporate subsidies, limited public participation, and the long-term stability of AI- related development, and urged the Council not to approve the project. Brenden Peters, a Mesa resident, addressed the Council with concerns regarding the proposed NTT data center. He stated that the City should be a good steward of limited resources and expressed concern about the high number of existing data centers in Mesa. He encouraged the Council to allow for additional community participation and further review before moving forward with the proposed project. 7. Adjournment. Without objection, the Regular Council Meeting adjourned at 6:53 p.m. ________________________________ 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 Regular Council Meeting of the City Council of Mesa, Arizona, held on the 8th day of June 2026. I further certify that the meeting was duly called and held and that a quorum was present. ________________________________________ HOLLY MOSELEY, CITY CLERK sr