A very clear message here: The front-hand knows what the back-hand is doing. It's in plain sight for the public to see . . . It's right out there in front of City Hall Plaza. However, most people who live here in Mesa might not have ever seen or noticed driving-by this bronze piece of public art that was installed in 2004 at the water flow-feature in front of City Hall on Main Street. . . is that the intended message? THINK ABOUT IT if you ever wonder what our elected and salaried officials are doing.
All citizens are permitted and encouraged to speak on agenda items including and preceding “Items from citizens present.”
BLOGGER NOTE: Last on the list > Item 10
Items not on the Consent Agenda
Item 10 Items from citizens present.
(Maximum of three speakers for three minutes per speaker).
If you are interested in speaking on such an agenda item, please fill out a blue card in the back of the room and give it to the City Clerk. When the Council considers the item, you will be called to the podium to provide your comments.
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Study Session @ 5:15 p.m.
1 Review and discuss items on the agenda for the May 6, 2019 regular Council meeting.
Regular Meeting @ 5:45 pm Final Meeting Agenda is 11 pages
> Mayor's Welcome
> Roll Call (City Council members participate in person or by telephone conference call.)
> Invocation by Pastor Tony Frazee with Gateway Bible Church.
> Pledge of Allegiance
> Awards, Recognitions and Announcements
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*5f 19-0505
Why pay attention to this?
Approving the purchase of, and authorizing the City Manager to enter into contracts with terms of up to three years for, a firm electric power supply and associated energy of up to 11 Megawatts (“MW”) varying monthly, with final average pricing of not greater than $60/MW hour.
(Districts 1 and 4)__________________________________________________________________________________
1 Take action on all consent agenda items.
*2 Items on the Consent Agenda
19-0527 Approval of minutes of previous meetings as written BLOGGER NOTE:
What's with so-called "Approved" Minutes?
These "minutes" are archaic and outdated practices - every previous meeting happens in real-time. Exact transcripts can be provided, instead of waiting one or two months.
| File #: | 19-0527 |
| Type: | Minutes | Status: | Agenda Ready |
| In control: | City Council |
| On agenda: | 5/6/2019 |
| Title: | Approval of minutes of previous meetings as written. |
| Attachments: | 1. March 21, 2019 Study 2. March 28, 2019 study 3. April 1, 2019 Study 4. April 15, 2019 Regular |
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Some of these contracts are routine, and some are not. It's a good thing to notice who/what is the source of funding and what the contract funds, or what "the strings attached" to the contracts are.
Contract 4-h for example OK's a golf course management that is operating at a deficit that will explode to a projected debt of $3M in three years. It's a 10-year term contract to be awarded to the Paradigm Golf Group. Who's that?
Item 5-e is a 25-Year Contract
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The first three are with MAG, Maricopa Association of Governments Approving and authorizing the City Manager to enter into agreements
For design assistance: an Intergovernmental Agreement with Maricopa Association of Governments (MAG) for a design assistance grant
*5a Mesa Gateway Shared-Use Pathway Phase III project.
The grant funds will allow for a feasibility and design study that will provide connection alternatives of the Mesa Gateway shared-use pathway from Hawes Road, to the Town of Gilbert's San Tan shared-use path at Power Road.
The City’s share is 20% ($36,778.40) of the cost of the study
MAG will cover the remaining 80% ($147,113.60). (District 6)
*5b US 60 Pathway-Consolidated Canal, to Eastern Canal Pathways project.
The grant funds will allow for a feasibility and design study for the construction of a shared-use pathway along the north side of the US 60 connecting the existing Consolidated Canal and Eastern Canal pathways.
The City’s share is 20% ($18,239.62) of the cost of the study; MAG will cover the remaining 80% ($72,958.49). (District 2)*5c 19-0455 Approving and authorizing the City Manager to enter into a Project Agreement with Maricopa Association of Governments for an Arterial Life Cycle Program Project on Broadway Road between Mesa Drive (LeSueur) and Stapley Drive that defines the regional reimbursement schedule for the project. (District 4)
| File #: | 19-0455 |
| Type: | Resolution | Status: | Agenda Ready |
| In control: | City Council |
| On agenda: | 5/6/2019 |
| Title: | Approving and authorizing the City Manager to enter into a Project Agreement with Maricopa Association of Governments for an Arterial Life Cycle Program Project on Broadway Road between Mesa Drive (LeSueur) and Stapley Drive that defines the regional reimbursement schedule for the project. (District 4) |
| Attachments: | 1. Council Report 2. Resolution 3. Agreement |
*5f 19-0505
Why pay attention to this?
Approving the purchase of, and authorizing the City Manager to enter into contracts with terms of up to three years for, a firm electric power supply and associated energy of up to 11 Megawatts (“MW”) varying monthly, with final average pricing of not greater than $60/MW hour.
(Districts 1 and 4)
| Attachments: | 1. Council Report 2. Resolution |
City Council Report
Date: May 6, 2019
To: City Council
Through: Kari Kent, Assistant City Manager
From:
Frank McRae, Energy Resources Department Director
Pedro Serrano, Energy Resources Program Manager
Tom LaVell, Management Assistant II
Subject: Approval of Agreement and Associated Letters of Confirmation for Procurement of Sculpted Monthly Base Electric Energy Supplies with up to a three (3) year term - Council Districts 1 and 4
Purpose and Recommendation
The Energy Resources Department (“ERD”) recommends that the City Council authorize the City Manager or his designee to enter into the electric power supply agreement described below.
Sculpted Monthly Base Electric Energy Supply:
This agreement will provide between 6-11 MW of electric power and associated energy during selected months throughout the year.
This agreement augments the ERD’s other annual and seasonal electric power supply agreements to provide additional electric power supplies during forecasted peak-demand months (December – February; and June – September).
Background
The City of Mesa (Mesa) operates an electric service area (ESA) of approximately 5.5 square miles encompassing the heart of the city including the original town-site.
As of December 31, 2018, electric service was provided to a total of approximately 16,847 customers of whom 14,287 were residential and 2,560 were commercial, interdepartmental or other public authorities.
The City itself is the largest customer within the ESA (based on the combined use of all Mesa’s facilities in the ESA). The electric utility experienced a CY2018 Summer peak demand of 88.27 Megawatts (MW) on July 25, 2018.
2
Mesa’s current electric power supply portfolio consists of the following electric generation and purchased power supplies:
Western Area Power Administration (“Western”) o Parker-Davis Project (Annual Hydroelectric): 8.0 - 10.4 MW (Summer Peak); Expires September 2028 o Colorado River Storage Project (Annual Hydroelectric): 3.4 - 4.3 MW (Summer Peak); Expires September 2057 o Western Replacement Power: provides as-needed electrical power purchased by the City at market rates CitiGroup Energy, Inc o Fixed Price Base Supply (Annual): 15 MW; Expires October 2020 SENA o Agreement Number 1, Part 1B (Summer Peak Supply): 15 MW, Expires September 2020 Constellation o July-August Peak Supply: 10 MW, Expires August 2020
This portfolio met approximately 73.2% of Mesa's end-use customers’ annual energy requirements through the twelve months ending December 2018.
By entering into the recommended contract for the sculpted base, Mesa will be able to provide 89.4% of anticipated end-use customer demand, system losses and other system obligations at firm fixed rates.
Given that Mesa’s electric utility end-use customers’ requirements can vary significantly due to weather fluctuations, any demand beyond the amount secured through contracts are met by real-time energy purchases and RMS energy transactions from the regional wholesale markets on an ad hoc basis.
Discussion
On March 20, 2019 the Department released Electric Power Request for Proposals 2019-03 (RFP) to 58 energy suppliers including suppliers that are known to provide electric energy through renewable resources.
The RFP was also posted on the City of Mesa Bid Opportunities website.
The term was requested to provide the City with leeway in selecting contract terms, pricing, and delivery locations that provide the greatest value to customers and to maintain the flexibility to take advantage of changes in the market.
> The RFP requested preliminary or indicative pricing from potential suppliers.
If Council approves this request, ERD will request Best and Final Offers from the highest rated suppliers and enter into a contract at those prices.
Responsive and responsible proposals were received from
Citigroup Energy, Inc.
Exelon Generation Company, LLC
Direct Energy Business Marketing, LLC.
3
The final contract selection will be based upon Best and Final Offers for the Supply Period taking into consideration Mesa’s available transmission access, in accordance with the Council authorization set forth in the proposed Resolution accompanying this Report.
This process has been successfully utilized for previous RFPs.
Alternatives
If Council chooses not to enter into these contracts, the demand for electric energy that exceeds the supplies available through the currently established contracts will be purchased on the wholesale regional market on a daily or monthly basis as needed through ERD’s agreement with Western.
The volatility and vagaries of the electric supply market causes this alternative to be risky due to the potential for both limited power supply availability and price spikes when supply constraints are experienced due to increased demand (such as during critical summer months).
Due to the risks to power supply availability and price spikes this alternative is not recommended.
Another alternative is to not utilize any of the proposals from this RFP and issue another RFP to solicit alternative proposals. Given the favorable Indicative Pricing, this alternative is not recommended.
Fiscal Impact
The costs resulting from the proposed Agreement are recovered from electric utility customers through an energy cost adjustment mechanism which is reviewed and revised on a monthly basis (“EECAF”).
The EECAF decreases when supply costs decline and increases when supply costs increase.
Based on the Indicative Pricing offers received, it is anticipated that the EECAF rate may be reduced compared to recent levels, reflecting lower total costs for ERD’s electric energy supplies.
The best and final offers from the suppliers will, however, determine the ultimate impact on customer’s monthly EECAF given that energy prices can vary between the indicative offers and best and final pricing depending on the movement of the wholesale energy market. For this reason, staff is requesting the Council approve the Resolution authorizing the purchase of the electric supplies on an expedited basis.
Coordinated With
The development and administration of the RFP was coordinated with the City Attorney’s Office and the Purchasing Department.
The City Attorney’s Office has reviewed, as to form, and will assist with negotiation of any final Agreement used to complete any electric power supply transactions pursuant to Council authorization.
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> 19-0486 (District 4)
Amending Sections 10-4-3 through 10-4-6 of the Mesa City Code to modify the boundaries of the current 35 mph speed limit on Main Street from Mesa Drive to Gilbert Road; to rescind the current 40 mph speed limit on Main Street from a point, 53 feet west of South Allen Street, to a point 211 feet east of Gilbert Road; and to correctly reflect existing boundaries of the current 45 and 30 mph speed limits on Main Street between Centennial Way/Sirrine and Gilbert Road, as recommended by the Transportation Advisory Board. *6-a
Annexing property located north of Ray Road, east of Power Road (69.3± acres).
Initiated by VIVO Partners, LLC. *6-b
> 19-0461 ZON18-00775 (District 6)
Within the 4900 to 5200 blocks of South Power Road (east side). Located south of 202 San Tan Freeway on the east side of Power Road and north of Ray Road
(58± acres).
Rezone from AG to LC-AF-PAD
Council Use Permit to allow multi-residential, commercial entertainment, hotel, and college and commercial trade school uses in the AOA 1 and AOA 2 overflight areas in the LC District; and Site Plan Review.
This request will allow for a mixed-use development.
Vivo Partners, LLC, applicant;
Arizona State Land Group, owner.
Staff Recommendation: Approval with conditions
P&Z Board Recommendation: Approval with conditions (Vote: 7-0)
*6-c
Page 8 City of Mesa Printed on 5/2/2019
May 6, 2019City Council Meeting Agenda - Final
> 18-1335 ZON18-00066 (District 3)
The 1000 through 1100 blocks of South Alma School Road (west side) and the 1200 through 1300 blocks of West Southern Avenue (north side). Located at the northwest corner of Alma School Road and Southern Avenue
(16± acres).
Rezoning from LC to RM-5 PAD for 10.5± acres
Rezoning from LC to LC-PAD for 5.5± acres
Site Plan Review for 16± acres.
This request will allow for the development of multi-residential and commercial uses
Adam Baugh, Withey Morris, PLC, applicant
WM Grace Development Co., ETAL, owner.
Staff Recommendation: Approval with conditions
P&Z Board Recommendation: Approval with conditions (Vote: 6-0)
*6-d
9 Conduct a public hearing on the following annexation cases:
19-0420 Public hearing for the release of the petition for signatures for annexation case ANX18-00502, located north of Ray Road, east of Power Road
(69.3± acres).
Initiated by VIVO Partners, LLC. (District 6) 9-a
19-0421 Public hearing for the release of the petition for signatures for annexation case ANX19-00066, located north of University Drive and west of Ellsworth Road
(13.07± acres).
Initiated by Sean Lake, Pew and Lake, PLC. (District 5) 9-b________________________________________________________________________________Item 10
THIS IS WHAT THE CITY COUNCIL CALLS "CITIZEN ACCESS"???????
3 MINUTES ALLOWED FOR ONLY 3 SPEAKERS
City Council Meetings https://www.mesaaz.gov/city-hall
The Mesa City Council believes that providing access for citizens to communicate with the Council is vital for a strong representative local government.
The following are methods in which to express your opinion at various Council meetings.
Agenda Items
At regular Monday Council meetings, blue Speaker/Comment cards are available for citizens who wish to comment on agenda items. Or, you may download a copy of the comment card [PDF] and hand it in at the Council meeting.
Please note items listed on the agenda with an asterisk are part of the consent agenda. Items on the consent agendas will be adopted with one motion and vote if no citizen or Councilmember requests that it be removed from the consent agenda for separate consideration.
Items from Citizens Present
Citizens are provided an opportunity to address the Council on any issue under an agenda item titled "Items from Citizens Present." This item appears on the agenda of every regular Monday Council meeting and Thursday Study Session.
