Mesa City Council Study Session - November 13, 2025

The Mesa City Council held a study session on November 13, 2025, covering a review of the upcoming Monday agenda, a discussion on furniture for the Sun Air facility, the micro-mobility plan implementation, proposed water utility rate adjustments, and regulation of battery energy storage systems (BESS). Councilmember Adams participated via Zoom. The meeting concluded with a motion to enter executive session.

Consent Calendar

• Knowledge of Receipts: Approved unanimously.

Discussion Items

• Agenda Review for November 17, 2025: Council clarified that item 6A (Sun Devil Auto) was continued to December 8, and capacity fees would become the new 6A. Staff noted a corrected agenda would be posted.

• Sun Air Furniture, Fixtures, and Equipment (FF&E) – Item 4C: Staff presented a $430,000 contract with Goodman's (state contract) to outfit 64 rooms with bed frames, tables, shelving, and mattresses. Councilmembers questioned local business participation and competitive pricing. Staff explained that state contracts offer best pricing due to volume, but local vendors can be considered through separate solicitations. Council expressed preference for giving Mesa businesses opportunities in future procurements. The item was left to proceed to the Monday agenda.

• Micro-Mobility Plan Implementation – Item 5D: Jeff McVay presented a slide deck on short-term implementation of parking signage, drop-off areas, and a parking app funded within current budgets. Council clarified that voting on the micro-mobility plan is a policy guide, not a direct approval of specific projects like Center Street changes. A parking app in beta test was discussed, with potential additional cost of $30,000–$60,000 for full deployment. The app will have dual-use cameras for public safety. Council supported continued development.

• Water Utility Rate Adjustments – Item 2A: Brian Richel presented three scenarios for residential rate increases: 0%, 2.5%, and the original 3.5% (along with corresponding commercial rate changes). Discussion focused on parity between residential and commercial customers, the impact on small businesses (especially those with triple-net leases), and the 30% transfer to the general fund. Councilmember GoForth questioned the justification for the transfer amount. Councilmember Adams requested historical accuracy of projections. After debate, consensus emerged for a 2.5% residential increase, which would increase commercial rates (e.g., commercial usage from 13% to 20%). Staff noted that the original notice of intent allows only up to noticed rates; additional commercial increases would require a separate process with effective dates in January and April 2026.

• Battery Energy Storage Systems (BESS) Regulation: Rachel Phillips presented two options: staff’s recommendation of 1,000-foot separation from residential uses and P&Z’s recommendation of 400 feet, both with increased accessory use nameplate capacity to 5 MW. Councilmembers expressed safety concerns, with Vice Mayor Summers and Councilmember Adams favoring 1,000 feet, while Councilmember Aretti preferred 3.5% residential but noted the need for business friendliness. No consensus was reached; staff will continue discussions with applicants and bring both options to the December 1 meeting, possibly with a third compromise option.

Key Outcomes

• Water Rates: Council directed staff to prepare the ordinance for a 2.5% residential increase (with corresponding commercial increases) for introduction on Monday, November 17, with effective dates in January (residential/part commercial) and April 2026 (remaining commercial).
• BESS: No decision made; staff will gather additional information from applicants and present two or three options for council consideration on December 1.
• Consent Item: Knowledge of receipts approved unanimously.
• Future Meetings: The next study session is November 17 at 5:00 p.m., with no meetings on November 20 or 27. The next regular council meeting is December 1.