Mesa council approves design-build for Arizona Farms Road gas-line replacement

The Mesa City Council on Feb. 9 approved a design-build contract to replace a high-pressure natural gas line near Arizona Farms Road that serves the city's Magma service area.

Resident David Winstanley urged caution before approving the contract, asking whether Mesa should be in the natural-gas business and whether the project's costs will indirectly increase local charges through the city's enterprise-fund transfers. "Is this really a business that the city of Mesa needs to be in and wants to be in as a business? It does not benefit the citizens of Mesa at all," Winstanley said.

City staff responded that the utility operates as an enterprise fund separate from the city's general fund, that bonds and infrastructure costs are borne by that utility's ratepayers, and that customers outside the city who do not purchase Mesa natural gas will not pay for the project. Staff offered to follow up with Winstanley and to provide the enterprise fund profit-and-loss figures the resident requested.

Council members and staff noted the city's long history of owning utilities, saying the decision to operate a gas utility dates to the 1970s and is consistent with Mesa's past purchases intended to secure service and revenue diversity. After discussion, the council moved and voted to approve the contract unanimously.

The contract approval will allow the design-build work to proceed; staff said they will supply the enterprise-fund financial details requested by members of the public and council. No vote tally by name was recorded in the transcript beyond the motion passing unanimously.