Council Report

City Council Report
Date: September 28, 2026
To: City Council
Through: Marc Heirshberg, Assistant City Manager
From: Erik Guderian, Transportation Director
Sabine King, Assistant Transportation Director
Subject: Power Road from State Route 202 (Santan Freeway) to the East
Maricopa Floodway
CIP Project No. CP0104
Intergovernmental Agreement with Maricopa County Department of
Transportation and Town of Gilbert
Council District 6
Purpose and Recommendation
The purpose of this report is to request Council approval of a resolution authorizing
the City of Mesa (City) to enter into an Intergovernmental Agreement (IGA) with
Maricopa County (County), through the Maricopa County Department of
Transportation (MCDOT), and the Town of Gilbert (Town) for improvements to Power
Road from State Route 202 (Santan Freeway) to the East Maricopa Floodway (EMF).
Refer to Exhibit “A” for the project location.
Staff recommends Council approve the resolution and authorize the City Manager to
execute the IGA on behalf of the City. The IGA defines each party’s cost responsibilities
for design, permitting, right-of-way acquisition, utility relocation, construction,
construction management, cost sharing, and transfer of the roadway from the County
to the City.
Background
Power Road between the Santan Freeway and the EMF (Project) is currently a
predominantly four-lane roadway constructed to rural arterial standards. Power Road
is an unincorporated County Road bounded by the City to the east and the Town to
the west. Significant growth is occurring in this area of the City and Town. The
corridor serves southeast Mesa and provides regional connectivity to adjacent
communities. Continued growth in the area has increased the need to upgrade the
roadway to urban arterial standards.
Discussion
Public agencies are authorized under A.R.S. § 11-951 et seq. to enter into IGAs to
jointly provide services and cooperatively deliver transportation projects and related
infrastructure.

The Project will widen Power Road to six lanes including raised landscaped medians,
ADA-compliant sidewalks and ramps, bike lanes, signing and striping, upgrade traffic
signals, streetlights, improved drainage facilities, and acquire the necessary right-of-
way and easements for the improvements. The improvements will be designed and
constructed in accordance with City standards.
Under the IGA, the City will serve as the lead agency for design, permitting, right-of-
way acquisition, utility relocation, construction, and construction management. The
County will assist with acquisition of right-of-way within the unincorporated area, and
the County and Town will provide required permits and participate in the project
development process. The Project is located within the segment of Power Road
extending from the south right-of-way line of Williams Field Road to Baseline Road,
which a 2003 IGA between the City and Town identified as Mesa’s area of future
responsibility. Under the current IGA, the City will initiate annexation of the roadway
following completion of the right-of-way acquisition process and will assume
responsibility for its operation and maintenance upon Project completion.
The City, the Town and the County have developed a preliminary design for the
improvements. The current Project cost estimate, based on the 60% design, is
$61,315,900. The estimated cost shares are $22,386,364 for the City (36.51%),
$21,190,441 for the Town (34.56%), and $17,739,095 for the County (28.93%). Costs
for enhancements above County standards will be shared by the City and Town,
while improvements requested specifically by one jurisdiction will be paid by that
jurisdiction. The City will invoice the County and Town for 50% of their estimated
shares at the start of construction and reconcile the remaining shares after Project
completion.
Under the current funding schedule, the County’s initial construction payment will not
be available before July 1, 2031, unless the County makes funds available earlier.
Construction is therefore currently anticipated in Fiscal Year 2032. Design work will
continue when this IGA is in place, and the necessary funding has been programmed
and appropriated by each agency.
Alternatives
The City Council could choose not to enter into the IGA. This is not recommended
because the City would not have binding commitments from the County and Town to
share Project costs and responsibilities, which would likely delay the planned
improvements to this important regional corridor.
Fiscal Impact
The IGA assigns an estimated $22,386,364 in Project costs to the City. A separate
Project Agreement with the Maricopa Association of Governments provides up to
$1,607,196.57 in Arterial Life Cycle Program reimbursement for eligible design costs.
Funding for the balance of the City’s estimated share has not been identified at this
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time. Future expenditures are contingent upon Council budget approval and
appropriation.
Coordinated With
This Agreement has been coordinated with the Engineering Department.
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