[PAGE 1] MINUTES MIUTES 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 20, 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 Trish Damon, Ward III Councilmember Pete Skinner, Ward II Councilmember Karen Schumacher, Ward I Mayor Ken Budge Councilmember Lori Reynolds, 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 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 • Acacia Barnett, Hattie B Black Women in Progress, spoke regarding the youth of Cochise County. • Beth Moorhouse, owner of the Bisbee Brownstone, spoke about her concern regarding the 500k shortfall in the city sales tax revenue. • Mike Ablin spoke regarding acquisitions of real estate and asked questions. • Nicole France, Bisbee resident, spoke on the foundational importance of transparency in order to build trust and pleaded to get over this idea that any sort of disagreement was fundamentally divisiveness. [PAGE 2] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 20, 2026 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 $598,528.54. SECOND: Councilmember Sowid Councilmember Schumacher 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, January 6, 2026. Ashlee Coronado, City Clerk B. Approval of the Minutes of the Work Session of Mayor and Council held on Tuesday, January 6, 2026. Ashlee Coronado, City Clerk C. Approval of the Minutes of the Special Session of Mayor and Council held on Tuesday, January 13, 2026. Ashlee Coronado, City Clerk D. Approval of the Reappointment of Amparo Gonzalez to the Airport Advisory Commission. Ashlee Coronado, City Clerk E. Approval of a Park, Facility and Right-of-Way Use Permit for the use of City Park for the Bisbee Anti-Folk Fest to be held Friday, March 27, 2026, through Saturday, March 28, 2026, from 12:00pm (Noon) to 11:59pm each day, Sarah Neubaum, Applicant. Ashlee Coronado, City Clerk F. Approval of a Park, Facility and Right-of-Way Use Permit for the use of the City of Bisbee Higgins Hill Park facilities, including the parking spaces and restroom/shower facilities for the Desert Adventure Rally to be held Tuesday, April 7, 2026, through Sunday, April 12, 2026, Eva Rupert, Applicant. Ashlee Coronado, City Clerk G. Approval of a Park, Facility and Right-of-Way Use Permit for the use of Vista Park for Night of Miracles/National Night Out on Wednesday, April 22, 2026, from 6:00pm to 9:00pm, Alma Hickman, Applicant; with a request to waive fees. 2 [PAGE 3] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 20, 2026 H. Approval of a Special Event Liquor License Application submitted by the Friends of the Bisbee Animal Shelter for a Valentine’s Day Party to be held at Standard Waffle located at 2-4 Shearer Ave, Bisbee, AZ. on Saturday, February 14, 2026, from 5:00pm to 8:30pm; Kelly Galligan, Applicant. Ashlee Coronado, City Clerk Mayor Budge pulled item G because of a fee waiver request. Councilmember Schumacher requested that item E regarding the park use permit for the Bisbee Anti- Folk Fest. She had questions about the beer permit, asking about size limitations since the festival expected about 100 people. She also noted the email address listed was for the Silver King, raising concerns about whether a commercial entity could get a non-commercial beer permit. Mr. Estes, City Attorney, explained that as long as they have the appropriate permit, it should be acceptable, though he noted the city should look into requiring liability insurance for events where alcohol was consumed on city property. The applicant had included host liquor coverage in their application. Councilmember Schumacher and Councilmember Skinner also expressed concerns about the event running until midnight for two nights at City Park without a specified shutdown time, noting neighbors should be notified. There were also questions about the lack of police or security for an event with alcohol. MOTION: Councilmember Cline moved to consent agenda items A, B, C, D, F, and H. SECOND: Councilmember Damon MOTION PASSED: UNANIMOUSLY MOTION: Councilmember Schumacher moved to table Item E (the Anti-Folk Fest Permit) to get more information from the applicant. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY Regarding item G (Vista Park for Night of Miracles/National Night Out), Mayor Budge questioned why the applicant would need 80 "no parking" signs. He stated he didn't mind waiving the $25 fee but was concerned about the number of signs requested. MOTION: Mayor Budge moved to table item G (Vista Park for Night of Miracles/National Night Out), until they could get clarification from the applicant. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY OLD BUSINESS 3. Discussion and Possible Approval of Ordinance O-26-02; Amending the City Code of the City of Bisbee, Chapter 3.5 Procurement. Melanie Greene, Interim Transit Manager Ms. Greene noted that Council had approved the notice of intent for amending the procurement code at the previous meeting, and tonight was their opportunity to discuss and approve it. 3 [PAGE 4] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 20, 2026 MOTION: Councilmember Skinner moved to approve Ordinance O-26-02; Amending the City Code of the City of Bisbee, Chapter 3.5 Procurement. SECOND: Councilmember Cline ROLL CALL VOTE: AYES: Councilmember Damon, Skinner, Schumacher, Reynolds, Sowid, Cline and Mayor Budge NAYS: 0 MOTION PASSED: AYES-7 NAYS-0 NEW BUSINESS 4. Discussion and Possible Approval of Ordinance O-26-03; Authorizing the Sale and Transfer of certain surplus city property being an unaddressed parcel located adjacent to APN 101-12-082H. Emanuel Stuart, City Planner Mr. Stuart explained that at the December 16, 2025, council meeting, the council had designated the property as surplus and set a minimum acceptable bid at $10,400. The auction was conducted, and Mr. Roupe was the successful bidder. This ordinance would authorize the sale and transfer of the property to complete the transaction. Councilmember Skinner asked for clarification, noting he had thought the deal was completed at the auction. Mr. Estes explained that all transfers of property must be done by ordinance, so after approving the sale and accepting the bid, they now needed to authorize the transfer through this formal process. MOTION: Councilmember Skinner moved to approve Ordinance O-26-03; Authorizing the Sale and Transfer of certain Surplus City Property being an unaddressed parcel located adjacent to APN 101- 12-082H. SECOND: Councilmember Cline ROLL CALL VOTE: AYES: Councilmember Damon, Skinner, Schumacher, Reynolds, Sowid, Cline and Mayor Budge NAYS: 0 MOTION PASSED: AYES-7 NAYS-0 5. Discussion and Possible Approval of the contract amendment #2 of Professional Services Agreement with Westland Engineering & Environmental Services. Matthew Gurney, Public Works Director Mr. Gurney presented a contract amendment for Westland Engineering and Environmental Services, which was working on the Old Bisbee sewer lateral project that has been ongoing since before 2015. The amendment would update their rate fees, as the last increase was in 2023. Mr. Gurney explained they are breaking the project into smaller sections and creating a sample project for ADEQ to determine if they can place some lines above ground in certain locations, as Bisbee's unique terrain presents challenges for regulatory approvals. 4 [PAGE 5] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 20, 2026 MOTION: Councilmember Schumacher moved to approve the contract amendment #2 of the Professional Services Agreement with Westland Engineering & Environmental Services. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 6. Discussion and Possible Approval of a Contract with ClearSpan for the Purchase and Installation of a Pre-Engineered Metal Building Package for the City of Bisbee Sanitation/Recycling Department under Sourcewell Cooperative Purchasing Contract #071223-CSS, in the amount of $176,976.54. Matthew Gurney, Public Works Director Mr. Gurney requested approval to enter into a contract with ClearSpan under a Sourcewell cooperative purchasing contract for a 60' x 80' pre-engineered metal building. The project had been budgeted in the previous year but was moved to the current budget. The building would be located on city property across from the county transfer station, It would house both of the city's balers and provide covered storage for recycled materials, especially bales that can be devalued when wet from rain or snow. Mr. Gurney noted that the recycling program has operated for 20 years with inadequate facilities. Councilmember Sowid asked about additional operational costs since they would be separate from the county facility. Mr. Gurney confirmed those costs would be included in the next budget, noting the total budgeted amount for the project was $215,000, with $45,000 remaining for concrete work. Mr. Gurney mentioned that the concrete pad would likely be constructed by city staff to save money. He also informed the Council that there are now cardboard recycling dumpsters in Old Bisbee, with plans to place more throughout town. Mr. Gurney noted that many people from outside city limits purchase recycling vouchers to use Bisbee's recycling services, as it's one of the few recycling operations in the region. MOTION: Councilmember Cline moved to approve a contract with ClearSpan for the purchase and installation of a 60' x 80' pre-engineered metal building under Sourcewell Cooperative Purchasing in the amount of $176,976.54. SECOND: Councilmember Sowid MOTION PASSED: UNANIMOUSLY 7. Discussion and Possible Approval to have RH Borden complete an Acoustic Assessment of the remaining sewer line pipes utilizing SL-RAT. Matthew Gurney, Public Works Director Mr. Gurney explained that RH Borden uses equipment that sends sound waves through sewer pipes to detect blockages or breaks. The process involves placing equipment in manholes to detect issues in the pipes between them. They had previously completed most of the town in 2024, and this would finish the remaining sections. The acoustic assessment also includes manhole inspections and provides all data on a GIS system, which gives the city its first comprehensive mapping of the sewer system. 5 [PAGE 6] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 20, 2026 The assessment has already helped identify several collapsed pipes and issues with rainwater infiltration. In some areas, over 100 gallons per minute of rainwater entered the system during rain events. Mr. Gurney noted that following this assessment, he plans to put out a bid for CCTV, scanning the entire Old Bisbee collection system to get a more detailed view of problem areas. This would help prioritize repairs to prevent overflows into Mill Gulch. MOTION: Councilmember Reynolds moved to approve having RH Borden complete the acoustic assessment. SECOND: Councilmember Sowid MOTION PASSED: UNANIMOUSLY 8. Discussion and Possible Approval for the Bisbee Arts Commission to pay Luke Oldfield in the amount of $100.00 for the delivery and operation of support structure for the kids New Year’s Eve ball drop. Karen Schumacher, Bisbee Arts Commission Liaison Councilmember Schumacher explained that there were a few lingering costs from the New Year's Eve events. The Arts Commission held two New Year's Eve celebrations, including one for children at 9:00 PM at Jonquil. Luke Oldfield provided support for the children's ball drop. Schumacher noted that these funds come from money raised by the Arts Commission. MOTION: Councilmember Skinner moved to approve the Bisbee Arts Commission to pay Luke Goldfield in the amount of $100 for the delivery and operation of support structure for the kids New Year's Eve ball drop. SECOND: Councilmember Cline MOTION PASSED: UNANIMOUSLY 9. Discussion and Possible Approval for the Bisbee Arts Commission to pay Rene Johnson in the amount of $250.00 for the subwoofer and wash lights delivery and rental for the Flam Chen NYE Performance. Karen Schumacher, Bisbee Arts Commission Liaison Councilmember Schumacher explained this was the last expense from the New Year's Eve events, covering the subwoofer and wash lights for the Flam Chen performance. She reiterated that these funds come from money raised by the Arts Commission. MOTION: Councilmember Reynolds moved to approve the Bisbee Arts Commission to pay Rene Johnson in the amount of $250.00 for the subwoofer and wash lights delivery and rental for the Flam Chen NYE Performance. SECOND: Councilmember Sowid MOTION PASSED: UNANIMOUSLY 10. Discussion and Possible Approval of a recommendation from the Bisbee Arts Commission to fund a grant application for Bruce Syrett in the amount of $500.00 from the Bisbee Arts Commission Fund. Karen Schumacher, Bisbee Arts Commission Liaison 6 [PAGE 7] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 20, 2026 Councilmember Schumacher presented the grant application from Bruce Syrett for a Bisbee Dark Skies show, noting that one of the artists is Steve Pauken. The $500 would be used to enlarge their work and install it for a show featuring dark skies images. She mentioned that the show would open on February 14th at the Carriage House Gallery in Warren. MOTION: Councilmember Sowid moved to approve the Bisbee Arts Commission to fund a grant application for Bruce Syrett in the amount of $500.00 from the Bisbee Arts Commission Fund. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY 11. Discussion and Possible Direction related to a Destination Marketing Organization Contract with Bisbee Forward and Possible Approval of a Notice of Solicitation for a Destination Marketing Organization. Ken Budge, Mayor Mayor Budge explained that this agenda item had two parts. The first was to rescind the previous offer to Bisbee Forward to negotiate a Destination Marketing Organization (DMO) contract. He explained that he had made a mistake in offering this without following proper procurement procedures, as city code 3.5.4 requires expenditures over $5,000 to go through a formal process. Mayor Budge took ownership of the error, explaining that he had initially suggested that Bisbee Forward become the city's full DMO rather than just an advisory group. However, upon review, the city attorney determined they needed to follow proper procurement procedures. During public comment, several speakers addressed the issue. Beth Morehouse suggested creating an oversight committee of stakeholders for any DMO. Sarah Prochnau from Bisbee Forward expressed disappointment with the process and questioned the language in the RFP. Cynthia Conroy spoke about the city's long history of successful tourism efforts. Liza Kovach emphasized the urgency of addressing declining tourism revenue, noting the $500,000 shortfall and the importance of tourism dollars to local businesses. Mayor Budge addressed the financial concerns, stating that according to December financials, the city was actually $200,000 ahead in revenue compared to the previous year, though tourism revenue was down. MOTION: Mayor Budge moved to rescind the offer to Bisbee Forward. SECOND: Councilmember Skinner MOTION PASSED: UNANIMOUSLY Council then discussed the second part—whether to approve a notice of solicitation for a DMO. Several council members, including Reynolds and Schumacher, suggested holding a work session before issuing the RFP to better determine what the city wanted from a DMO. MOTION: Councilmember Schumacher moved to send the notice of solicitation to a work session for further discussion. SECOND: Councilmember Sowid MOTION PASSED: 6/1 (Budge) 12. Discussion and possible Direction related to the acquisition of the Fair Building. Ken Budge, Mayor 7 [PAGE 8] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 20, 2026 Mayor Budge introduced the potential acquisition of the Fair Building, explaining that city staff had conducted preliminary inspections of the building, including assessments by the building inspector, fire inspector, an on-call engineer, and their architect. A report from the building inspector listed only minor issues such as hanging fire extinguishers and replacing some electrical receptacles. Mayor Budge noted that the roof was in good condition and the building had new air conditioning and heating. Some work would be needed on windows and stairwells, but nothing major. The Finance Director had prepared a budget showing that operating a visitor center would cost about $112,000 per year, with an additional $15,000 in utilities if moved to the Fair Building. Doug Dunn, Vice President of the Restoration Museum, explained that he had initiated discussions about potentially deeding the Fair Building to the city for use as a visitor center. Built in 1902 and designed by Frederick Urst, the building was on the National Historic Sites Register. The museum's board of directors had encouraged him to move forward with this proposal. Mr. Dunn detailed recent improvements to the building, including updated HVAC, an ADA-compliant restroom, and completely updated electrical systems. He also mentioned that the museum currently collects $50-100 per day in admissions and owns nine parking spaces that could generate income. The proposal would dedicate a 14' by 42' area on the left side of the building for a visitor center, which would operate alongside the museum. During public comment, Amy Burkert expressed concern about taking on another historic building when the Copper Queen Library building needs significant repairs. Fred Miller opposed the acquisition, noting that the city already owns 170 properties, including at least 15 substantial buildings, and arguing that bed tax money should be used for bringing visitors to Bisbee, not building maintenance. Cynthia Conroy supported the acquisition, citing the building's valuable location on Main Street and the services it could provide to visitors. MOTION: Mayor Budge moved to proceed with negotiations with the Restoration Museum board to draw up a contract for potential transfer, conduct additional inspections including a sewer scope, and bring all information back to council for a final decision. SECOND: Councilmember Damon MOTION PASSED: 6/1 (Schumacher) The council discussed the need for a structural engineer's assessment and clarification about ownership, with City Attorney Estes explaining that the city would want both a deed transferring ownership and a lease agreement specifying the museum's continued use of parts of the building. 13. City Manager’s Report: • Interim City Manager Ashlee Coronado announced that the Moon Canyon project would start on February 2. The project will turn the intersection into a four-way stop and involve partial closure of the bridge, with one half remaining open for traffic in both directions. ADOT will create a page for updates on the project's status. 8 [PAGE 9] MINUTES OF THE REGULAR SESSION OF MAYOR AND COUNCIL January 20, 2026 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: 9:32PM ___________________________ Ken Budge, Mayor 9