[PAGE 1] MINUTES Town Hall 551 Hot Springs Blvd Town Council Meeting Pagosa Spring, CO 81147 January 20, 2026 @ 5:00 PM A regular meeting of the Pagosa Springs Town Council was called to order on January 20, 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 Council Member Bergon said that she is employed by Habitat for Humanity. Mayor Pierce said she didn't think there was a conflict because Habitat was not asking for funding at this time. V. PUBLIC COMMENT Mr. Eddie Archuleta said he wants to know who was in charge of the sidewalks from 8th Street to Florida Street and up Florida Street because no one is cleaning them or removing snow. Mayor Pierce said that it is up to the property owner unless it is a town-recognized trail. Town Manager Harris is looking into it. VI. PRESENTATIONS 1. Habitat for Humanity Update [PAGE 2] Town Council January 20, 2026 Executive Director Leah Ballard gave Town Council an update on year four of the five-year plan from Habitat for Humanity. In the five-year plan, they have 15 energy-efficient, long- term affordable houses set for 15 workforce families. In 2025, Habitat for Humanity completed three homes, making the total homes built since 2022 eleven. The goal for 2026 is to complete four additional homes to complete the 15 homes in five years. Habitat for Humanity has become a Clayton Modular dealership, helping save over $20,000 per unit. In the future, they want to work with other non-profits and government organizations to broaden their impact in the community. VII. CONSENT AGENDA 1. Approval of the January 6, 2026 Meeting Minutes 2. December Financial Statement and Payments 3. Quarterly Investment Report 4. Letter of Support for CTO Tourism Management Grant Council Member Williams moved to approve the consent agenda, Council Member Martinez seconded. VIII. REPORTS TO COUNCIL 1. Sales Tax Report The County reported sales and marijuana tax receipts for November down 10.28%, with retail trade being the hardest hit. When the Town separated the marijuana tax, the sales tax portion was down 9.91%. 2. Other Department Reports a. Administration Report b. Lodging Tax Report c. Municipal Court Department Report d. Parks and Recreation Monthly Report Page 2 of 5 [PAGE 3] Town Council January 20, 2026 e. Police Department Report IX. UNFINISHED BUSINESS 1. Ordinance 1023, Second 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.) Town Manager Harris said some questions were raised after the first reading about what would happen if the Hospital no longer needed the property, and he said it would revert to the Town's ownership. Council Member Williams moved to approve Ordinance 1023, second 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 deGraaf seconded. X. NEW BUSINESS 1. Tourism Messaging and 2026 Marketing Plan Tourism Director Jennifer Green, said staff created a video promoting Pagosa being open for skiing, soaking, and outdoor recreation. Staff is also working on spring break specific campaigns that will target all the 2025 audiences that visited Pagosa in March 2025 (based on mobility data). All of these efforts are in addition to multiple other campaigns currently running across META, YouTube, and through the Colorado Tourism Office. Spring campaigns will begin to roll out towards the end of February and will run through May. She said the lodging tax for October was down 9%. She feels the October floods and the government's 6-week shutdown play a role in that. November lodging tax was up 6.8%. Council Member Martinez said he watched a show on PBS that featured the hot springs and said it was very well done. Council Member Lindner said a thank you to staff for listening to the local businesses' concerns about promoting Pagosa being open. Town Manager Harris said new banners for parking will be placed on light poles around town to help direct visitors. Mayor Pierce said feathered flags will be placed for business access. 2. Ordinance 1024, First Reading, Submitting to the registered electors of ballot question to amend Article 6, Section 6.6 of the Home Rule Charter to modify the maximum fine and maximum jail sentence for violations of Town Ordinances and Regulations Ordinance 1024 cleans up language in the Town Charter to shift the responsibility of setting the maximum fine and maximum jail sentence for violations of town ordinances and regulations to Town Council. The question will appear on the ballot for the April 7, 2026, municipal election. Page 3 of 5 [PAGE 4] Town Council January 20, 2026 Council Member Bergon moved the approval of Ordinance 1024, an ordinance of the Town of Pagosa Springs submitting to the registered electors a ballot question to amend Article 6, Section 6.6 of the Home Rule Charter to modify the maximum fine and maximum jail sentence for violations of town ordinances and regulations, Council Member Lindner s econd. 3. Ordinance 1025, First Reading, Ballot Measure authorizing a CWCB $3 million loan for flood recovery efforts Ordinance 1025 allows the Town to apply for a $3 million loan through the Colorado Water Conservation Board (CWCB) to assist in the two-mile downtown river corridor flood recovery. It will appear on the ballot for the April 7, 2026, municipal election. The current flood recovery efforts is not to reconstruct the river corridor to what it was prior to the October 2025 flood. Given the two-mile downtown river is in essence a public playground, the intent is to ensure that the river corridor is a safe place for public use, and riverbanks are armored to protect public infrastructure. The CWCB loan has a three-year period at zero interest, and a low 3.35% interest rate after the no-interest period. Council reviewed the loan total amount of $3 millions through CWCB with an annual payment of approximately $170,000. There are several grants associated with the $6 million dollar repairs needed for the most damaged areas of flooding. The loan is not required if FEMA is obtained later or if additional funds are received. Mayor Pierce said she wants to make sure if the loan is voted on and approved, that all projects regarding the river are approved by the Town Council before moving forward. She said she is not sure which roads and bridges need fixing and how much work needs to be done to the river in case of another flood. Council Member Bergon said it's important to recognize the huge economic driver the river is to our community. She wants to protect the resources our town has. Council Member Williams said he is concerned about everyone assuming another flood won't happen, but he supports the project. Council Member DeGuise moved the approval of Ordinance 1025, an ordinance of the Town of Pagosa Springs submitting to the registered electors at the April 7, 2026, regular town election a ballot question authorizing the town to incur debt in the form of a loan from the Colorado Water Conservation Board to fund disaster recovery from the October 2025 San J uan River flood. Council Member Bergon seconded. XI. PUBLIC COMMENT None XII. 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 motioned to go into 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 Page 4 of 5 [PAGE 5] Town Council January 20, 2026 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 5:59 pm. Mayor Pierce called the meeting back in regular session at 6:46 pm. XIII. MAYOR, COUNCIL, TOWN MANAGER COMMENTS/UPCOMING AGENDA ITEMS Town Manager Harris gave a sanitation update that pump station one has a functional bypass pump in place and are waiting on prices and lead times for other repairs. He said the message boards on either side of town belong to CDOT. The Town is able to put messages on them and he will be working with Jennifer Green and Karl Johnson on future messages. He said the jersey barriers along the highway can be moved if desired, but it will cost $15,360.00 each time they are moved. He said the Humane Society Thrift Store wants to work with the Town to get waivers for staff parking during construction on their side of the highway. Council Member Williams said he would like to see the Town raise the problem with the sewer system to an emergency level with the State. He said it would help show the need for a new treatment plant. Town Manager Harris said he had a conversation with DOLA about how to fast- track our sewer situation and applications. Council Member Martinez said he found the uptown location for the new school district interesting. Council Member Lindner said the desire for the uptown location would be for more field space for all the schools, since they are currently fighting over field time at their current location. Council Member Bergon said she would like to keep the school district downtown, but likes the idea of them going uptown to get more development out west. Council Member Williams said he would like to see more public buildings built in the center of town. XIV. UPCOMING COUNCIL MEETINGS January 26, 2026 at 5:00 pm: Joint Town Council and County Commissioners Work Session February 3, 2026 at 5:00 pm: Regular Council Meeting February 17, 2026 at 5:00 pm: Regular Council Meeting February 23, 2026 at 5:00 pm: Joint Town Council and County Commissioners Work Session March 3, 2026 at 5:00 pm: Regular Council Meeting March 17, 2026 at 5:00 pm: Regular Council Meeting XV. ADJOURNMENT M ayor Pierce adjourned the meeting at 7:13 pm. Shari Pierce Mayor Page 5 of 5