Consideration and Adoption of Resolution No. 2026-26:   A resolution of the Flagstaff City Council, approving an Intergovernmental Agreement (IGA) between the City of Flagstaff and Northern Arizona Intergovernmental Public Transit Authority (NAIPTA or Mountain Line) for Transit Services.
 

1. Read Resolution No. 2026-26 by title only
2. City Clerk reads Resolution No. 2026-26 by title only (if approved above)
3. Adopt Resolution No.2026-26

The Northern Arizona Intergovernmental Public Transportation Authority (NAIPTA or Mountain Line) is the transit agency in northern Arizona operating the Mountain Line fixed route bus system, Mountain Line Paratransit, Mountain Express, Vanpool and Mountain Line Go. Established in 2001, Mountain Line has grown into a system that employs more than 100 full and part-time employees and had total ridership of 1,805,476 in fiscal year 2025 for the fixed bus route system. 

The IGA for Transit Services outlines the obligations of Mountain Line including general and financial management obligations and City Obligations, including general and compensation guidelines.  There are a few key amendments that are referenced in the Background section of this staff summary.  The proposed intergovernmental agreement allows for the continuation of public transportation services with the City's Transit Tax funding.

In 2024, city voters approved to increase a dedicated Transaction Privilege Tax (“Transit Tax”) to 0.500% for purposes of providing public transportation services.  The FY2025-26 Mountain Line budget for Transit Tax is $18,627,191 for operations and capital. 

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The Amended and Restated Master Intergovernmental Agreement was last adopted by City Council on May 6, 2025.

• Approve the new IGA for Transit Services as submitted.
• Revise and approve the new IGA for Transit Services. 
• Do not approve the IGA for Transit Services.  If not approved, staff may bring back an amendment to the existing IGA to extend services for one more year. 

May 2000, City of Flagstaff voters approved a transaction privilege tax dedicated to providing transit services in our community for a ten-year period at a maximum rate of 0.175% (“Transit Tax”) expiring June 30, 2010. May 2008, voters approved a transit tax increased rate to 0.295% and an extension to expire June 30, 2020. November 2016, voters approved continuing the 0.295% transit tax rate and the extension to expire June 30, 2030.  November 2024, voters approved a transit tax increased rate to 0.500% and an extension to expire June 30, 2030.

In addition, the Northern Arizona Intergovernmental Public Transportation Authority (NAIPTA), now referred to as Mountain Line, was formed under A.R.S Title 26, Chapter 28 via a Master Intergovernmental Agreement in March 2006.  Mountain Line was formed to provide a regional approach to public transportation, to establish a shared governance structure, and to transfer liability for transit operations from the Counties and Cities to an entity whose sole function is the planning and delivery of public transportation services. The Master IGA was recently amended and restated on September 12, 2025. Member agency signatories to the Mountain Line Master IGA are the Coconino County, City of Flagstaff, Northern Arizona University and Coconino County Community College District.

Under the terms of the Master IGA signed by Mountain Line member agencies, Service IGAs will be used to define the specific services that each member chooses to purchase from Mountain Line. By approving the Transit Services IGA with Mountain Line, these services will continue uninterrupted.  Furthermore, the Mountain Line annual budget request from the City will be approved through the City's annual budget process.

City staff and Mountain Line staff worked together on the revisions and updates to the Transit Service IGA. Some key revisions include:
Section 1.1.3.1 was added to allow the City to request additional Transit Service for events in our community. 
Section 1.2.5 was amended to provide communication requirements related to any potentially fraudulent activity.
Section 2.4.1 was amended to clarify that the City's Traffic Engineer has authority, in consultation with Mountain Line, to move any existing transit stops. 
Section 3.1 was amended to 1) clarify how the City will compensate Mountain Line each fiscal year and 2) provide the ability for Mountain Line to request additional advanced payments due to federal issues such as a federal government shutdown. 
 

Sustainable and Innovative Infrastructure:

• Deliver outstanding services to residents through a healthy, well-maintained infrastructure system.
• Provide, manage, and maintain effective infrastructure of multimodal and active transportation. 

Policy T.1.1. Integrate a balanced, multimodal, regional transportation system.
Policy T.3.2. Promote transportation systems that reduce the use of fossil fuels and eventually replace with carbon neutral alternatives.

Decrease Dependance on Cars

• DD-3: Encourage Flagstaff residents and visitors to walk, bike, roll and take the bus.
• DD-5: Invest in comprehensive and equitable transit.

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