Sandra Alcorn

The meeting included a review and adoption of the previous month's meeting minutes. Key discussions involved an overview of the Emergency Housing Declaration process initiated by Mayor and Council, including efforts to amend the Unified Development Code to address zoning barriers and shelter options. The Commission held a substantive discussion regarding recommendations to Mayor and Council concerning homelessness, including drafting a letter to support emergency orders and increase housing capacity. Additionally, the Commission reviewed the proposed 2026 meeting schedule for the CEHD and its subcommittees. Updates were provided by Housing and Community Development (HCD) on housing projects and budget forums, by Planning and Development Services (PDSD) on the successful passage of Proposition 417 and progress on Middle Housing Code Amendments, and by Pima County on funding allocated for housing stability and assistance programs.

The meeting featured a detailed discussion regarding public power options in Tucson, driven by community interest in addressing rising energy costs, achieving long-term rate certainty, aligning energy supply with climate goals, and increasing local control. Key models discussed included Community Choice Aggregation (currently not authorized in Arizona), a municipal utility serving city-owned sites, a municipal utility for new development, and full municipalization within city limits. The full municipalization option involves significant complexity, including an estimated asset valuation between $1 billion and $4 billion, potential condemnation and litigation lasting several years, and the requirement for voter approval. Separately, staff presented on the draft Energy Collaboration Agreement (ECA), which is tied to the potential renewal of TEP's franchise agreement, noting community input informed the draft.

The session commenced with an executive session regarding Colorado River water interstate negotiations and supply contracts, followed by a motion to return to the study session. Key discussions centered on the Fiscal Year 2027 budget development, noting revenue constraints due to federal policies and a projected operating deficit for FY2026. The council reviewed potential spending reductions in the current year, including foregoing extra contributions to public safety pensions ($7.6 million) and adjusting one-time funds related to the public drug use approach ($1.5 million). The body also discussed proposals for FY2027 savings, such as postponing workforce development grants ($600,000 annually) and foregoing the general fund portion of the PIP grant program ($1.4 million annually in FY2027 and FY2028). An update on public safety pensions indicated positive investment earnings for FY2025, showing the funded status improved to nearly 73%. The budget development plan includes funding Year 2 of the employee compensation plan ($14.4 million) and increasing the capital fund contribution to $8 million in FY2027, while noting that $35 million earmarked for Prop 407 projects will likely be spent later in FY2029-FY2031.

The meeting focused on a proposed update to the zoning code to establish regulations for large-scale data centers. Key discussion points included the city's responsibility to create land use regulations that keep pace with new technologies, drawing direction from the Mayor and Council following the consideration of a prior data center proposal. The presentation defined a large-scale data center, detailed the intent of proposed regulations (setting clear rules for location/design, protecting sensitive areas, addressing noise/scale, and ensuring public input), and outlined the existing gap in current zoning code regarding this emerging use. The discussion also clarified that zoning primarily regulates land use, building size, shape, and location, while water and power usage are limited areas for zoning control. The comprehensive code amendment process, involving Mayor and Council initiation, research, community feedback meetings, Planning Commission review/public hearing, and final decision by the Mayor and Council, was detailed.

The Mayor and Council Agenda Committee meeting involved approving the minutes from a previous meeting held on February 4, 2026. The committee subsequently reviewed and scheduled agendas for upcoming meetings. These included a Study Session on March 3, 2026, covering the FY26 Budget Update and FY27 Budget Discussion, pending matters before the Pima County Board of Supervisors, and updates on State and National Legislation. A Joint Meeting was scheduled for March 3, 2026, to discuss pending matters and the Safe City Initiative. A Regular Meeting on March 3, 2026, had a Consent Agenda that included the approval of previous minutes, city vehicle markings exemptions, transportation funding agreements, and amendments to Intergovernmental Agreements related to law enforcement training and financial policies. Future direction reports detailed required follow-up actions, such as returning with recommendations on addressing public drug use, continuing work on the City of Tucson's Veteran Programs, and developing a proposed ordinance prohibiting the use of City property for staging civil immigration enforcement operations within 30 days.