[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, FEBRUARY 17, 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 7:00PM. ROLL CALL COUNCIL Councilmember Karen Schumacher, Ward I Councilmember Pete Skinner, Ward II Councilmember Trish Damon, Ward III Mayor Ken Budge Councilmember Anna Cline, Ward III, Mayor Pro Tempore Councilmember Mel Sowid, Ward II Councilmember Lori Reynolds, Ward I STAFF Ashlee Coronado, Interim City Manager / City Clerk Keri Bagley, Finance Director Matthew Gurney, Public Works Director Logan Dodd, Operations Manager Tim Cox, Police Chief Jay Ritchie, Deputy Police Chief 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 • Amy Burkert, Bisbee resident, spoke regarding the city financials. • Fred Miller, Bisbee resident, spoke on the transient bed tax fund. • Mike Schmitzer, Bisbee resident, spoke regarding 30 Main Street asbestos removal. • Nicole France, Bisbee resident, spoke regarding delaying committing bed tax funds to buy a building until after leadership stabilizes, suggesting a lower -cost trial option instead. • Charles Flanagan, Bisbee resident, spoke regarding hiring a DMO, emphasizing that Council should choose a professional organization with a proven track record. • Beth Moorhouse, Bisbee resident, spoke regarding the city’s sale tax revenues and warned the city was far behind budget and likely facing a deficit by year’s end. • Circles Robinson, Bisbee resident, spoke regarding a petition that would be coming before the Council to consider limiting cooperation with ICE. • Mike Ablin, Bisbee resident, urged the Council to base its decisions on solid financial analysis, business planning, and facts-not opinions or emotions. THE FOLLOWING ITEMS WERE DISCUSSED, CONSIDERED, AND/OR DECIDED UPON AT THIS MEETING: [PAGE 2] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL February 17, 2026 GENERAL BUSINESS: 1. ACCOUNTS PAYABLE: Subject to availability of funds. MOTION: Councilmember Cline moved to approve accounts payable in the amount of $308,886.30. SECOND: Councilmember Skinner Councilmembers Cline and Skinner inquired about items on the accounts payable report, and staff responded. MOTION PASSED: UNANIMOUSLY 2. Approval of the Consent Agenda A. Approval of the Minutes of the Regular Session of Mayor and Council held on Tuesday, February 3, 2026. Ashlee Coronado, City Clerk B. Approval of the Appointment of Elizabeth Vann to the Bisbee Arts Commission. Ashlee Coronado, City Clerk C. Approval of a Park, Facility and Right-of-Way Use Permit for the use of Subway Street to Tombstone Canyon in front of the Legion Bar and Grill and from Tac Avenue to Tombstone Canyon for the Legion Birthday Party to be held on Saturday, March 21, 2026, from 11:00am to 9:00pm, Michael Ablin, Applicant. Ashlee Coronado, City Clerk Councilmember Cline requested item C be pulled for further discussion. MOTION: Councilmember Schumacher moved to approve Consent Agenda items A and B. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY C. Approval of a Park, Facility and Right-of-Way Use Permit for the use of Subway Street to Tombstone Canyon in front of the Legion Bar and Grill and from Tac Avenue to Tombstone Canyon for the Legion Birthday Party to be held on Saturday, March 21, 2026, from 11:00am to 9:00pm, Michael Ablin, Applicant. Councilmember Cline expressed concern about "that end of the street being blocked off for a birthday party." Mr. Ablin clarified his request was not for a birthday party but to allow about 25 motorcycles to park on Subway Street, an arrangement previously approved, and said access for regular and emergency vehicles would remain open. When pressed about the application stating it was a birthday party, Mr. Ablin admitted he didn't fill it out himself but had spoken to staff about it not being a birthday party but rather to allow motorcycle parking in front of the Legion Bar and Grill for 25-30 motorcycles. • Renee Riksheim spoke in opposition to this permit. Councilmember Skinner asked the business owners present about the impact. Business owners present spoke regarding their concerns regarding this event. 2 [PAGE 3] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL February 17, 2026 Councilmember Sowid asked if there was a way to do it without closure. Mr. Ablin responded: "The event was going to take place regardless of whether you close the street or not." He explained it was to accommodate a motorcycle enthusiast's birthday party, and the motorcycles couldn't park in the unpaved lot because their kickstands would sink into dirt. He became somewhat defensive: "So if it's going to cause that much of a problem and you guys want to rescind it, then go ahead and rescind it. I'm not going to argue the point." Councilmember Damon noted this would be during the end of spring break, a busy time. After further discussion, where Mr. Ablin alternately claimed it was and wasn't a birthday party, creating confusion, and with Councilmember Cline pointing out the event could proceed without the street closure, no motion was made. Mayor Budge stated: "Hearing no motion, we'll move on to old business." The item died for lack of a motion. OLD BUSINESS NEW BUSINESS 3. Discussion and Possible Approval of a Contract for Services with Ambulance Medical Billing (AMB) for Ambulance Billing Services. Keri Bagley, Finance Director Ms. Bagley explained the 6-year contract with their current ambulance biller was up in February. An RFP was put out and received 3 responses. AMB, their current biller, came in with the lowest rate at 3% (down from 3.29%), and they're very happy with the service they've been receiving. MOTION: Councilmember Skinner moved to approve a contract for ambulance billing services for AMB. SECOND: Councilmember Damon MOTION PASSED: UNANIMOUSLY 4. Discussion and Possible Approval of Resolution R-26-06; Adopting the Updated “Development Standards for the Bisbee Historic District”. J. Emanuel Stuart, City Planner Mr. Stuart explained the Design Review Board has updated the guide to rehabilitation for the historic district. The updates add sections to create clarity and consistency with state historic preservation office standards. The action would formally declare the development standards public record and update the city's standards for use by the Design Review Board and general public, ensuring consistency regardless of who's on the board. MOTION: Councilmember Schumacher moved to approve Resolution R-26-06, adopting the updated Development Standards of the Bisbee Historic District. SECOND: Councilmember Damon MOTION PASSED: UNANIMOUSLY 5. Discussion and Possible Approval of Change Order #2 with Durazo Construction. Michael Normand, Construction Project Manager, Camp Naco Mr. Normand explained this item adds funds to the existing guaranteed maximum price contract with Durazo to complete the build-out of building A2, one of the barracks on the west quad at Camp Naco. The barracks will house educational exhibits including the Buffalo Soldier Barracks exhibit and a resource center/library for the community. The funds came from a recently received National Park Service grant. 3 [PAGE 4] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL February 17, 2026 Councilmember Sowid asked the reason for the adjustment because you had some new funding coming in. Mr. Normand confirmed, explaining they had a master plan, but initial grant funding wasn't enough to do all the work. They had submitted the National Park Service grant and were waiting to hear. A few months after awarding the initial contract, they received notice of the award, though there was a delay due to government shutdown. Councilmember Skinner asked when it would be completed. Mr. Normand stated it'll be completed by the end of this year. MOTION: Councilmember Sowid moved to approve change order #2 with Durazo Construction for the build out of historic Camp Naco building A2 in the amount of $250,908.00. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY 6. Discussion and Possible Approval of Change Order #5 for Poster Mirto McDonald. Michael Normand, Construction Project Manager, Camp Naco Mr. Normand explained this change order with the architect was for adding 2 ADA accessible restrooms in building A8 in the east quadrant where most outdoor events will occur. He noted that looking at things progressing, it would be advantageous to have ADA restrooms closer to outdoor events rather than behind the stage area. Since initial funding wasn't available for a planned second restroom building, this provides facilities to accommodate anticipated outdoor events. This change order was just for design work at $4,800.30. MOTION: Councilmember Damon moved to approve change order #5 for Poster Mirto McDonald in the amount of $4.800.30. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 7. Discussion and Possible Approval of an Owner Contingency for the rehabilitation of Camp Naco historic buildings. Michael Normand, Construction Project Manager, Camp Naco Mr. Normand requested establishing a contingency fund the project can access to cover changes like the restrooms just discussed. He emphasized: "This was money that's available within the grant currently, so we're not asking for money outside of the grant funds that are already awarded." He explained they currently have no contingency, so any change requires coming to council, which impacts the schedule. Using the restroom as an example, he explained that while the building was being worked on and plumbers are on-site, there's an opportunity to do the rough-in plumbing. With contingency, he could authorize that work to keep the project on schedule and costs down. He also explained that credits from work not needed would go back into the contingency fund. As an example, during phase 1 underground utilities installation, they budgeted to install 250 feet of 6-inch waterline on Newell, but discovered it was already there, saving about $20,000. Councilmember Sowid expressed concerns: "First of all, why didn't you have something from the beginning?… How will we - where will the oversight be at?" He was concerned about transparency and the possibility of expenses being kept under $5,000 to avoid oversight. "I just don't want this to happen. You know what I'm talking about. Yes. Because we have this, the policies where everything has to be. So, I just don't want this where we'll start doing things under $5,000 where we don't have that oversight." After discussion clarifying that normal procurement procedures would still apply for anything over $5,000, with Mr. Normand stating the anticipated changes would be in the $5,000-10,000 range, the council agreed to proceed with appropriate oversight. 4 [PAGE 5] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL February 17, 2026 MOTION: Mayor Budge moved to approve the owner’s contingency for Camp Naco building rehabilitation project in the amount not to exceed $100,000.00 following the city procurement and charter expenditure limitations. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 8. Discussion and Possible Approval to purchase 100 Universal carts (roll-out trash cans) from Wastequip (Toter) in the amount of $8,181.30. Matthew Gurney, Public Works Director Mr. Gurney explained they needed to purchase 100 trash cans - 75 black residential ones and 25 commercial ones - to replenish stock for replacements. He noted they bought blue ones from Sierra Vista at the beginning of the residential transition, but many are starting to break. They budget to purchase more every year as they constantly go through trash cans and are trying to add more stations. Councilmember Sowid asked if these are replacements, or are these contingency? Mr. Gurney explained they're for both replacing broken ones and having contingency stock. MOTION: Councilmember Cline moved to approve the purchase of 100 universal carts from Wastequip (Toter) in the amount of $8,181.30. SECOND: Councilmember Damon MOTION PASSED: UNANIMOUSLY 9. Discussion and Possible Approval to set the rate of pay for the Interim City Manager. Ken Budge, Mayor Mayor Budge brought this forward, explaining: "It seemed like when we first did this, the interim city manager would probably not be there for too much time, and it seems like now we've continued that on to be a much more extended period. So, I think it's only right that we increase the pay to whatever this council feels like it should be." He noted they were paying the last city manager $125,000 a year and thought somewhere close to that range would be acceptable. Councilmember Schumacher asked for transparency about a previous raise, confirming Ashlee's pay had been raised about $25,000 before the previous manager left. Councilmember Skinner stated he thought it was appropriate and had no problem going to the hundred and 25 k that Mr. Pauken was at." Councilmember Cline agreed, noting Ms. Coronado was also handling city clerk duties. Councilmember Sowid clarified that Ms. Coronado would be getting that pay for the period she was in that position. After that, she will revert back to her" regular salary once a new city manager was hired. Discussion about the effective date concluded it would be effective at the next pay period. MOTION: Mayor Budge moved to set the rate of pay for the Interim City Manager at $125,000.00 effective at the next pay period. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY 5 [PAGE 6] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL February 17, 2026 10. Discussion and Possible Approval of a Motion to Go into Executive Session Pursuant to A.R.S. § 38- 431.03(A)(7) for discussion or consultation for legal advice with the City Attorney in order to consider the City’s position and instruct its representatives regarding negotiations related to purchase, acquisition or lease of the Fair Building located at 37 Main Street, and the Convention Center located at 2 Main Street, for a possible visitor center location; and the School District Building located at 519 W Melody Lane. Ken Budge, Mayor MOTION: Mayor Budge moved to go into executive session. SECOND: Councilmember Sowid MOTION PASSED: UNANIMOUSLY MOTION: Mayor Budge moved to come out of executive session. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 11. Discussion and Possible Direction to staff related to the following properties, the Fair Building located at 37 Main Street, and the Convention Center located at 2 Main Street, for a possible visitor center location, and the School District Building located at 519 W. Melody Lane. Ken Budge, Mayor Mayor Budge opened by saying no vote would happen yet on the Melody Lane building due to unanswered questions and the need to review the budget further. He then discussed the fair building and convention center: • Convention center offer: disliked the 2-year limit, citing past issues with temporary moves and instability. • Fair building: potential profitability with museum admission and parking revenue, encouraging serious negotiation with the Restoration Museum board. Councilmember Damon – Favored the fair building as a “win-win,” fitting the museum and Bisbee’s history. Councilmember Skinner – Highlighted tourism benefits, historic central location, financial potential (parking and museum revenue), and real estate appreciation. Councilmember Schumacher – Requested a structural assessment ($5-7K cost). Councilmember Cline – Agreed the 2-year limit for the convention center was an issue and liked the fair building option. Councilmember Sowid – Concerned about city expenses but open to the fair building if revenue covers costs. Councilmember Reynolds – Supported fair building only if the museum was included, noting revenue would offset expenses. Mayor Budge concluded by emphasizing the historic and structural significance of the fair building and Cafe Roca. Mayor and Council leaned toward the fair building with the museum, given its financial and historical benefits, while the convention center option was less favored due to its temporary nature. MOTION: Mayor Budge moved that the Council allows the City Manager and City Attorney, with some involvement from himself, to negotiate with the Fair Building Restoration Museum for the exact terms of ownership and coordination, to bring back a complete spelled-out contract. SECOND: Councilmember Sowid MOTION PASSED: 6/1 (Schumacher) 6 [PAGE 7] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL February 17, 2026 12. 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.): Mayor Budge stated that, as there was nothing else before this Council this meeting was adjourned. ADJOURNMENT: 10:05PM ___________________________ Ken Budge, Mayor 7