[PAGE 1] MINUTES MINUTES OF THE REGULAR SESSION OF THE MAYOR AND COUNCIL OF THE CITY OF BISBEE, COUNTY OF COCHISE, AND STATE OF ARIZONA, HELD ON TUESDAY, JANUARY 6, 2026, AT 7:00 PM AT COUNCIL CHAMBERS LOCATED AT 118 ARIZONA STREET, BISBEE, ARIZONA. THE MEETING WAS CALLED TO ORDER BY MAYOR BUDGE AT 7:08PM. ROLL CALL COUNCIL Councilmember Trish Damon, Ward III Councilmember Pete Skinner, Ward II Councilmember Karen Schumacher, Ward I Mayor Ken Budge Councilmember VACANT, Ward I Councilmember Mel Sowid, Ward II Councilmember Anna Cline, Ward III, Mayor Pro Tempore STAFF VACANT, City Manager Ashlee Coronado, Interim City Manager / City Clerk Keri Bagley, Finance Director Matthew Gurney, Public Works Director Logan Dodd, Operations Manager Jay Ritchie, Deputy Police Chief J. Emanuel Stuart, City Planner Melissa Hartman, City Planner Melanie Greene, Transit Manager CITY ATTORNEY Joseph Estes INVOCATION: Mayor Budge called for a moment of silence for personal reflection. PLEDGE OF ALLEGIANCE MAYOR’S PROCLAMATIONS AND ANNOUNCEMENTS: CALL TO THE PUBLIC • Mike Schmitzer, Bisbee resident, spoke regarding trash pickup in Old Bisbee on long weekends / holidays. • Steve Willhite, Bisbee resident, spoke regarding the painting of streets in Bisbee. THE FOLLOWING ITEMS WERE DISCUSSED, CONSIDERED, AND/OR DECIDED UPON AT THIS MEETING: GENERAL BUSINESS: 1. ACCOUNTS PAYABLE: Subject to availability of funds. MOTION: Councilmember Cline moved to approve accounts payable in the amount of $711,820.75. SECOND: Councilmember Sowid MOTION PASSED: UNANIMOUSLY [PAGE 2] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 6, 2026 2. Approval of the Consent Agenda A. Approval of the Minutes of the Regular Session of Mayor and Council held on Tuesday, December 16, 2025. Ashlee Coronado, City Clerk B. Approval of the Appointment of Nicole France to the Bisbee Arts Commission. Ashlee Coronado, City Clerk C. Approval of the Appointment of Alisia Espiriti to the Board of Adjustment with a Waiver for Number of Commission Memberships Served. Ashlee Coronado, City Clerk D. Approval of the Appointment of Nicole France to the Charter Review Committee. Ashlee Coronado, City Clerk E. Approval of the Appointment of Bill Bailey to the Design Review Board with a Waiver for Number of Commission Memberships Served. Ashlee Coronado, City Clerk F. Approval of the Reappointment of Cheri Chase to the Airport Advisory Commission. Ashlee Coronado, City Clerk G. Approval of the Reappointment of Tyler Bradberry to the Board of Adjustment. Ashlee Coronado, City Clerk H. Approval of the Reappointment of Melissa Hartman to the Board of Adjustment. Ashlee Coronado, City Clerk I. Approval of the Reappointment of Mary Gojkovich to the Civil Service Commission with a Waiver for Number of Commission Memberships Served. Ashlee Coronado, City Clerk J. Approval of the Reappointment of Annie Larkin to the Evergreen Cemetery Committee. Ashlee Coronado, City Clerk K. Approval of the Reappointment of Sandra Michel to the Evergreen Cemetery Committee. Ashlee Coronado, City Clerk L. Approval of the Reappointment of William Gronlund to the Library Advisory Board with a Waiver for Length of Service. Ashlee Coronado, City Clerk M. Approval of the Reappointment of Donna Wirtel to the Library Advisory Board. Ashlee Coronado, City Clerk N. Approval of the Reappointment of William Bailey to the Parks and Recreation Committee. Ashlee Coronado, City Clerk O. Approval of the Reappointment of Alisia Espiriti to the Planning and Zoning Commission. Ashlee Coronado, City Clerk 2 [PAGE 3] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 6, 2026 P. Approval of the Reappointment of Mary Gojkovich to the Police and Fire Advisory Committee. Ashlee Coronado, City Clerk MOTION: Councilmember Cline moved to approve the Consent Agenda items A through P. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY OLD BUSINESS 3. Discussion and Possible Approval of Ordinance O-26-01; Amending Chapter 7, Building, by establishing a new article 7.16- Utility Pole Installation and Relocation Regulations. Logan Dodd, Operations Manager Mr. Dodd explained that the ordinance would require utilities to move their equipment to new poles and remove old equipment at their own cost. He emphasized that this was primarily a safety issue, mentioning that the city had to mitigate three beehives from different poles within the past year. Mayor Budge moted that APS had been good about upgrading their poles, but other utilities need to keep up with these improvements. MOTION: Councilmember Skinner moved to approve Ordinance O-26-01; Amending Chapter 7, Building, by establishing a new article 7.16- Utility Pole Installation and Relocation Regulations. SECOND: Councilmember Damon ROLL CALL VOTE: AYES: Councilmember Damon, Skinner, Schumacher, Sowid, Cline and Mayor Budge NAYS: 0 MOTION PASSED: AYES-6 NAYS-0 NEW BUSINESS 4. Public Hearing and Discussion and Possible Approval of a Liquor License Application for Le Cornucopia Café located at 1 Howell Avenue, Bisbee, AZ; Gretchen Renee Bonaduce, Applicant. Ashlee Coronado, City Clerk Mayor Budge opened the Public Hearing. He asked if anyone would like to speak in favor or against. There were none. Mayor Budge asked the City Clerk if any written correspondence had been received on this item. Ms. Coronado responded “no.” Mayor Budge closed the Public Hearing. MOTION: Councilmember Damon moved to approve the Liquor License Application for Le Cornucopia Café located at 1 Howell Avenue, Bisbee for Gretchen Renee Bonaduce. SECOND: Councilmember Schumacher MOTION PASSED: UNANIMOUSLY 5. Public Auction of Designated Surplus Property an unaddressed parcel located adjacent to APN 101-12- 082H. J. Emanuel Stuart, City Planner Mr. Stuart presented the public auction for a strip of land off Black Knob, consisting of approximately 4,609 square feet, with a minimum bid of $10,400. The parcel was identified as a thin strip adjacent to property owned by John Roupe, who initiated the auction process. 3 [PAGE 4] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 6, 2026 Mayor Budge conducted the auction, announcing the starting bid of $10,400. Sandy Tillcock, representing John Roupe, placed a bid for $10,400, stating she had a blank check made out to the City of Bisbee and could contact Mr. Roupe by cell phone if needed. No other bids were received. MOTION: Mayor Budge moved to accept the bid from John Roupe for $10,400.00 for the property. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY 6. Discussion and Possible Approval of Resolution R-26-01, Amending the Building Inspector Section of the City Fee Schedule. Melissa Hartman, City Planner Ms. Hartman explained that this resolution would amend only the fee schedule for registration fees related to vacant and abandoned properties. She noted that once approved, the city could begin registering vacant and abandoned properties, for which they had been receiving more calls recently. She also explained that the fees were structured to help offset the costs of administering the program to protect public health, safety, and community standards. MOTION: Councilmember Sowid moved to approve Resolution R-26-01, Amending the Building Inspector Section of the City Fee Schedule. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 7. Discussion and Possible Approval for the Bisbee Arts Commission to pay Hotel La More at The Bisbee Inn in the amount of $126.56 for two rooms for Flam Chen following the New Year’s Eve Event. Karen Schumacher, BAC Liaison Councilmember Schumacher presented this request for payment to Hotel La More. She noted that the hotel had donated rooms for free on top of those being paid for and actually provided a total of six rooms at a significantly discounted rate for the performers. MOTION: Councilmember Skinner moved to approve the Bisbee Arts Commission to pay Hotel La More at The Bisbee Inn in the amount of $126.56 for two rooms for Flam Chen following the New Year’s Eve Event. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 8. Discussion and Possible Approval for the Bisbee Arts Commission to pay Art Car World in the amount of $150.00 for an Art Car and Driver for their New Year’s Eve Event. Karen Schumacher, BAC Liaison Councilmember Schumacher explained that one art car was hired through Art Car World for the New Year's Eve event, as part of an effort to include more art cars in future events. She noted that some people volunteered their vehicles, but some art cars are very heavy, and the payment would cover gas and other needs for a vehicle that came from Douglas. MOTION: Councilmember Damon moved to approve the Bisbee Arts Commission to pay Art Car World in the amount of $150.00 for an Art Car and Driver for their New Year’s Eve Event. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY 9. Discussion of Current status of Bisbee Bus including pending 5311 Application, Budget, Audit and Contracts. Melanie Greene, Interim Transit Manager 4 [PAGE 5] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 6, 2026 Ms. Greene provided a comprehensive update on the Bisbee Bus operations. She acknowledged the helpful staff at the city who had assisted with restructuring the administrative side of the bus system, particularly Matthew Gurney and his public works team, as well as Ashlee Coronado. She also praised Lorena for her extensive knowledge of the bus system's history. Ms. Greene outlined several improvements made to the bus operations: ● Revised fare collection processes to meet federal standards ● Successfully completed a federal program audit ● Created necessary documentation including vehicle maintenance plans and fare collection protocols ● Worked on procurement of two additional vehicles to replace aging diesel buses ● Began preparing RFP documents for a new operations contractor, as the current contract with Douglas has been in place for ten years Ms. Greene highlighted significant budget challenges: ● ADOT has reduced funding awards annually over the last four years because: ● The city did not utilize all awarded funds in previous years ● The number of 5311 systems in the state has increased while federal money has remained constant She explained that current funding would only sustain operations until March or early May 2026. The total budget required for the full fiscal year was $446,811.40, with a funding gap of $159,535.13. Greene outlined strategies to address this, including: ● Requesting additional funding from ADOT ● Seeking support from county supervisors for approximately $30,000 to help cover the cost of serving county residents ● Requesting approximately $2,575 from the sheriff's department for rides provided to released jail inmates Ms. Greene proposed increasing ridership by 4% this year and potentially 4-8% the following year to lower the cost per ride, which currently stands at $13.41. She also recommended the city hire a full-time transit manager, as the position requires full-time attention to properly administer all aspects of the program. Mayor and Council asked questions about the funding model and the relationship between ridership and costs. Greene emphasized that increased ridership doesn't necessarily translate to increased costs but spreads existing costs over more riders, making the program more attractive for federal funding. Mayor Budge noted that he would work with state legislators to advocate for additional funding for the bus system and would also approach county officials since the service benefits both county residents and the Douglas bus system. 10. Discussion and Possible Approval of the Notice of Intent to Adopt Ordinance O-26-02; Amending the City Code of the City of Bisbee, Chapter 3.5 Procurement. Melanie Greene, Interim Transit Manager Ms. Greene explained that this amendment to the procurement ordinance was necessary to comply with federal standards, which are required for all procurements made with federal funds. She noted that the federal auditor was surprised the city didn't already have federally compliant procurement rules, given the amount of federal funding it receives. 5 [PAGE 6] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 6, 2026 Ms. Greene mentioned that she had also created a procurement checklist to help staff comply with federal requirements when using federal funding. MOTION: Councilmember Cline moved to approve the Notice of Intent to Adopt Ordinance O-26-02; Amending the City Code of the City of Bisbee, Chapter 3.5 Procurement. SECOND: Councilmember Sowid ROLL CALL VOTE: AYES: Councilmember Damon, Skinner, Schumacher, Sowid, Cline and Mayor Budge NAYS: 0 MOTION PASSED: AYES-6 NAYS-0 11. Discussion and Possible Approval of Revisions to the City of Bisbee, Bisbee Bus ADA Policies. Melanie Greene, Interim Transit Manager Ms. Greene explained that the city was required to have ADA policies in place, and the revisions highlighted in yellow were necessary to make the policies compliant with federal regulations. She noted that several policies from the contractor, City of Douglas, were not compliant and had been adjusted. Ms. Greene emphasized that bus drivers are cognizant of persons with disabilities and are instructed to use limited discretion and flexibility with policies to avoid discrimination, erring on the side of doing the right thing whether a person can prove a disability or not. MOTION: Councilmember Schumacher moved to approve the Bisbee Bus ADA Policy as revised. SECOND: Councilmember Damon MOTION PASSED: UNANIMOUSLY 12. Discussion and Possible Approval of the DBE Program Plan. Melanie Greene, Interim Transit Manager Ms. Greene presented the Disadvantaged Business Enterprise (DBE) program plan, explaining that while the federal government recently revitalized the program in a different way, the city was still required to have a plan. She noted there aren't many recertified DBEs in Arizona currently, but the requirement was tied to procurement rules. The plan outlines how the city will reach DBE goals when spending federal money, ensuring small businesses get a fair share of federal spending. Greene mentioned this applies to all federal funding used by the city, but she was specifically requesting approval for the Bisbee Bus program. MOTION: Councilmember Schumacher moved to approve the Bisbee Bus DBE Program Plan. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY 13. Discussion and Possible Approval of the Adoption of the City’s Title VI Plan. Melanie Greene, Interim Transit Manager Ms. Greene presented the Title VI plan, which should be approved annually. She noted significant changes highlighted in yellow, including a completely rewritten executive summary, updated addresses, new census data for the Limited English Proficiency section, and new requirements to show the race of TAC committee members to demonstrate inclusion of representatives from the general population. She also pointed out new sections on reviewing subrecipients (City of Douglas) and service standards found in Appendix A to ensure civil rights compliance. 6 [PAGE 7] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 6, 2026 MOTION: Councilmember Schumacher moved to approve the Title VI Plan as revised. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 14. Discussion and Possible Approval of a Contract Administration Manual. Melanie Greene, Interim Transit Manager Ms. Greene presented a contract administration manual that, while not absolutely required by FTA regulations, would help avoid compliance issues in federal program audits. The manual covers responsibilities for administering contracts with ADOT and subrecipients using federal funds, including pre-award, post-award, and compliance verification processes. Greene explained this would serve as a guide for the transit manager to ensure proper contract administration for federally funded projects. MOTION: Councilmember Skinner moved to approve the Contract Administration Manuel. SECOND: Councilmember Damon MOTION PASSED: UNANIMOUSLY 15. Discussion and Possible Approval of Resolution R-26-02; Authorizing the Submission of an Application to the Arizona State Match Advantage for Rural Transportation (AZ Smart) Fund for reimbursement of Federal Grant Development costs related to a raise/build Transportation Discretionary Grant Application. J. Emanuel Stuart, City Planner Mr. Stuart explained that this resolution would authorize the city to apply for reimbursement of costs associated with preparing a federal discretionary transportation grant application for Commerce Street projects. He noted that submission was required to retain eligibility for the Arizona Smart Fund, and approval would allow the city to request reimbursement for up to 50% of eligible grant development costs. The total cost to develop and submit the grant application was $6,400, and the fund would reimburse $3,200. Stuart emphasized that failure to apply would result in the loss of previously awarded funds. MOTION: Councilmember Schumacher moved to approve Resolution R-26-02; Authorizing the Submission of an Application to the Arizona State Match Advantage for Rural Transportation (AZ Smart) Fund for reimbursement of Federal Grant Development costs related to a raise/build Transportation Discretionary Grant Application. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 18. City Manager’s Report: COUNCIL COMMENTS OR FUTURE AGENDA ITEM SUGGESTIONS: (Council members may suggest topics for future meeting agendas, but Council will not here discuss, deliberate, or take any action on these topics.): • Councilmember Schumacher commented on the successful New Year's Eve celebration hosted by the Bisbee Arts Commission despite the rainy weather. She noted that approximately 100 people attended the family-friendly event at Jonquil, and about 300 people gathered in City Park. She thanked various organizations and individuals who contributed to the event's success, including the Friends of the Bisbee Animal Shelter, Arizona Rangers, Jonquil Motel, Aerie Studio, Hotel La More, Bisbee Table, Nina Williams, and Josh White. Councilmember Damon shared her personal experience attending the New Year's celebration, describing how she and a friend participated in the parade and enjoyed the performances at City Park. She praised the diverse crowd of attendees of all ages, including local residents and visitors, and described the event as "the most magical and best New Year's Eve ever." 7 [PAGE 8] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 6, 2026 16. Discussion and Possible Approval of a Motion to Go into Executive Session Pursuant to A.R.S. § 38- 431.03(A)(3) for discussion or consultation for legal advice with the City Attorney related to the City Manager Recruitment. Ken Budge, Mayor MOTION: Mayor Budge moved to go into executive session pursuant to A.R.S. 38-431.03(A)(3) for discussion or consultation for legal advice with the City Attorney related to the City Manager Recruitment. SECOND: Councilmember Schumacher MOTION PASSED: UNANIMOUSLY MOTION: Mayor Budge moved to come out of executive session. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY 17. Discussion and Possible Selection of a firm for City Manager Recruitment Services. Ken Budge, Mayor Mayor Budge noted that they had reviewed applications from eight firms and narrowed their choices to three. MOTION: Mayor Budge moved that the City Attorney contact these firms to obtain additional information to help the Council determine which firm would be the best fit. SECOND: Councilmember Damon MOTION PASSED: UNANIMOUSLY Mayor Budge stated that, as there was nothing else before this Council this meeting was adjourned. ADJOURNMENT: 8:57PM ___________________________ Ken Budge, Mayor 8