Council reviews plan to replace aging Magma‑area gas line; staff cites bonds and missing historical test records
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Summary
Council asked staff about a proposed 12‑inch high‑pressure gas line buildout in the Magma service area costing $5,598,000; staff said the city would use utility obligation bonds, cited industrial customer revenue projections, and noted missing pressure‑test records for portions of the system dating from 1965–1970 requested by the Arizona Corporation Commission.
Council members discussed plans to replace aging gas infrastructure in the Magma service area during the Feb. 9 study session. Staff described a proposal to install a 12‑inch high‑pressure pipeline in part of the New Magma area, with an estimated construction cost staff cited as $5,598,000.
Staff said Mesa acquired the Magma service territory in 1979 and that the city has operated the territory under Corporation Commission‑defined boundaries since that purchase. The Magma area replacement was framed as both a growth investment and a corrective step to enable required pressure testing for older pipe segments. "They had the corporation commission did an audit in 2019, and they were requesting pressure test records on part of the lines between the periods of 1965 and 1970... we don't have those records," staff said, noting the replacement work will allow the city to perform those tests.
On financing, staff said the city would use utility system/utility obligation bonds to fund the buildout. They told the council that industrial customers can accelerate payback: staff said one returning industrial customer is expected to generate about $1,500,000 in near‑term revenue and that the following year revenues could grow to about $3.5 million as load increases. Staff added that the pace of bond payoff depends on when customers connect and the load they bring.
Council members also discussed that the existing pipeline includes 6‑inch segments installed approximately 60 years ago and that replacement had been anticipated because of age and growth pressures. Vice mayor Summers asked whether a master plan would be posted online; staff said utility master plans are typically withheld from public posting for security reasons.
No formal ordinance or final funding appropriation was made during the study session; council heard the briefing and asked staff to return with implementation details as needed.