[PAGE 1] MINUTES Town Hall 551 Hot Springs Blvd Town Council Meeting Pagosa Spring, CO 81147 January 6, 2026 @ 5:00 PM A regular meeting of the Pagosa Town Council was called to order on January 6, 2026 at 5:00 PM in the Town Hall 551 Hot Springs Blvd. COUNCIL PRESENT: Mayor Pierce, Council Member Bergon, Council Member deGraaf, Council Member DeGuise, Council Member Lindner, Council Member Martinez, and Council Member Williams COUNCIL ABSENT: I. CALL MEETING TO ORDER II. ROLL CALL III. PLEDGE OF ALLEGIANCE IV. DISCLOSURES AND/OR CONFLICT OF INTEREST None V. PUBLIC COMMENT Mr. Ben Fox said the infant and toddler care costs in Pagosa Springs are very high. He said the Council should support the infant and toddler caregivers. Mr. Bill Hudson said the County Commissioners discussed how to use an increase in lodgers tax, using it for roads, childcare support, housing, etc. He said the Town could increase lodgers tax to be used for childcare and housing support. Ms. Laura Mijares said she works with the Early Childhood Council to work with local licensed and non-licensed childcare facilities. Ms. Mijares is the Town's representative to the CAST childcare group. VI. CONSENT AGENDA [PAGE 2] Town Council January 6, 2026 1. Approval of the December 16, 2025 Meeting Minutes 2. Ratify Letter of Support for SolidGround Solutions Council Member Lindner moved to approve the consent agenda, Council Member DeGuise s econded. VII. NEW BUSINESS 1. Discussion regarding possible ballot questions to amend the Town’s Home Rule Charter Staff is asking the Town Council to consider placing items on the April 7th, 2026 election ballot. The items below would be charter amendments: 1. Municipal Courts’ fine setting authority to the maximum allowed by state law — council has consensus to put this on the ballot 2. Municipal Courts’ authority for jailable offenses to the state maximum — council has consensus to put this on the ballot 3. Reducing the number of Town Council Members from 7 members to 5 (one mayor and four council members) — Council Member Williams said the bigger number allows a more diverse council with all the changes happening in town. Council Member Lindner said the seven members works well. Council Member deGraaf said he is in support of a five-member board and said it could be more functional. Council Member DeGuise said there are fewer candidates for open seats. Council Member Martinez said there is more discussion and points of view that are valuable. Council Member Bergon said she is open both ways. This item will be discussed at the Council retreat. 4. Increasing the monthly stipend provided to the mayor and council members from its current $300 for the mayor and $200 for council members — Council Member DeGuise said if there is a tax question on the ballot it will wipe out this questions. Staff said the payments to council vary by cities. Council Member deGraaf said none of the council does it for the money. He said the amount of the hours put into the position is well compensated for him. Council Member Williams said he would like younger folks to participate, and a small stipend may assist to get qualified candidates. Council Member Martinez said he doesn't want to see it on the ballot, he donates his salary. This item will be discussed at the Council retreat. The items below would be possible questions on this April or a future election: 5. Lodgers Tax increase and vehicle rental fee for PARC support, housing, and childcare 6. Excise tax for geothermal soaking use 7. Flood funding of up to $3 million 2. Resolution 2026-01 Supporting Submittal of a Colorado Water Conservation Board Water Supply Reserve Fund Grant Application for 2025 Flood Recovery Work Page 2 of 5 [PAGE 3] Town Council January 6, 2026 Resolution 2026-01 supports a grant application from the Colorado Water Conservation Board (CWCB) and the Water Supply Reserve Fund (WSRF) to further help fund flood recovery efforts. The funds will assist with completing South 6th Street bank armoring. These WRSF funds will be paired with funding from the National Resources Conservation Services (NRCS) Emergency Watershed Protection (EWP) fund, which provided funding match for project costs associated with our flood recovery efforts. The project total is $585,200 and the Town's match is around $20,000. Council Member Lindner moved to approve Resolution 2026-01 supporting submittal of a Colorado Water Conservation Board Water Supply Reserve Fund grant application for 2025 Flood Recovery Work, Town Council Williams seconded. 3. Housing Action Plan Strategy Working Group Appointment Archuleta County was awarded a grant to pursue the development of a Housing Action Plan (HAP), now required pursuant to Colorado SB24-174, section 24-32-3705. The HAP process includes public meetings and the development of a Housing Strategy Working Group. A Council member representative should be appointed to serve on the work group. Council Member deGraaf moved to recommend appointing Gary Williams to the Housing Strategy Working Group, Council Member Lindner seconded. 4. Flood Recovery Funding Efforts Presentation Project Manager, Kyle Rickert, provided an update on the flood recovery funding efforts. The estimated cost for repairs from the flood are in the $5-6 million range. Several grants were applied for and awarded to cover bank stabilization, rock and debris removal, log jam removal, and dredging of ponds. The potential funding is approximately $2-3 million, the balance of the funding needs of approximately $3 million could be obtained from a general obligation bond from CWCB loan with zero interest for the first three years. The general obligation bond would need to go to a vote at the April 7, 2026 election and be repaid from capital fund sales tax revenues. 5. Early Childcare and Education 2026 Funding Discussion Town Manager Harris provided the council with the 2026 early childcare and education funding application. Council's 2026 adopted budget includes $88,000 for early childcare and education, which includes daycare centers, in-home daycare centers, and other needs related to this goal. Ms. Laura Mijares said the infant slots are the ones that are missing, but the higher age slots are available. She said the criteria the council is looking at is good. 6. Ordinance 1023, First Reading, Authorizing an Amendment to an Agreement with the Pagosa Springs Medical Center Affecting an Interest in Real Estate (San Juan Rangers building, 302 San Juan St.) Page 3 of 5 [PAGE 4] Town Council January 6, 2026 The San Juan Rangers vacated ownership of the property at 302 San Juan Street by quitclaim deed to Pagosa Springs Medical Center in October 2025. The PSMC and Town staff support the development of this property and building as an EMS station. Should the PSMC no longer need this facility, the Town would have the right of first refusal to acquire the property to add it to the adjacent park. Council Member deGraaf moved to approve Ordinance 1023, first reading, authorizing an amendment to an agreement with the Pagosa Springs Medical Center affecting an interest in real estate (San Juan Rangers building, 302 San Juan St.), Council Member Bergon seconded. VIII. PUBLIC COMMENT Mr. Bill Hudson said SJWCD was going to put in water gauging station and said the Town should reach out to SJWCD to request a grant. IX. EXECUTIVE SESSION 1. Executive session pursuant to C.R.S. 24-6-402(4)(e), determining positions relative to matters that may be subject to negotiations, developing a strategy for negotiations, and instructing negotiations regarding the pre-development agreement between the Town and Servitas, LLC. Council Member deGraaf executive session pursuant to C.R.S. 24-6-402(4)(e), determining positions relative to matters that may be subject to negotiations, developing a strategy for negotiations, and instructing negotiations regarding the pre-development agreement between the Town and Servitas, LLC, Council Member Lindner seconded. Town Council entered executive session at 7:07 pm. Mayor Pierce called the meeting back in regular session at.7:50 pm. 2. Possible Executive Session per C.R.S. 24-6-402(4)(f), Discussion of a Personnel Matter Regarding the Town Manager Annual Evaluation This item is tabled until a future date. X. MAYOR, COUNCIL, TOWN MANAGER COMMENTS/UPCOMING AGENDA ITEMS Council Member Lindner said the Reservoir Hill fundraising group has met and would like to give a brief update on their progress. The Town Council retreat to look at the strategic plan is scheduled for April 24 or May 15. Staff is working on website updates, alert subscription on website, Hilltop Cemetery rules updates, and staff leadership training scheduled. XI. UPCOMING COUNCIL MEETINGS January 13, 2026 at 5:00 pm: Council Work Session January 20, 2026 at 5:00 pm: Regular Council Meeting February 3, 2026 at 5:00 pm: Regular Council Meeting F ebruary 17, 2026 at 5:00 pm: Regular Council Meeting Page 4 of 5 [PAGE 5] Town Council January 6, 2026 XII. ADJOURNMENT Mayor Pierce adjourned the meeting at 8:03 pm. Shari Pierce Mayor Page 5 of 5