[PAGE 1] MINUTES Town Hall 551 Hot Springs Blvd Town Council Meeting Pagosa Spring, CO 81147 February 17, 2026 @ 5:00 PM A regular meeting of the Pagosa Springs Town Council was called to order on February 17, 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, Counci Member Lindner, Council Member Martinez COUNCIL ABSENT: Council Member Williams I. CALL MEETING TO ORDER II. ROLL CALL III. PLEDGE OF ALLEGIANCE IV. DISCLOSURES AND/OR CONFLICT OF INTEREST None V. PUBLIC COMMENT Mr. Eddie Archuleta said the Springs Resort is an eyesore and needs to be cleaned up. He said the 5th Street low-income housing has trash around it, there is a trash pile at Hwy 84 and Hwy 160, and the Quality Inn has trash against the hill in the back. VI. CONSENT AGENDA 1. Approval of the February 3, 2026 Meeting Minutes [PAGE 2] Town Council February 17, 2026 2. January Payments 3. Employee Handbook Revision Council Member Lindner moved to approve the consent agenda, Council Member DeGuise seconded. Motion Passed VII. REPORTS TO COUNCIL 1. Sales Tax Brief a. Sales Tax Report - December 2025 Sales tax for December 2025 received in February 2026 shows a 13.13% increase over December 2024. Marijuana tax continues to decline. 2. Other Department Reports a. Administration Report b. Development Department c. Lodging Tax Report d. Municipal Court Department Report e. Parks & Recreation Report f. Police Department Report g. Public Works Department Report VIII. UNFINISHED BUSINESS 1. Update on CDOT Highway Safety Improvement Program Grant The Town and County discussed improvements to North Pagosa Blvd from the Hwy to Page 2 of 5 [PAGE 3] Town Council February 17, 2026 Village/Bastille Drive. The County decided not to participate in the CDOT HSIP grant program. Staff explained the Town could still apply for a grant of $800,000 for an approximately $1.6 million project for Village Drive improvements. This might include a new road off Village Drive along Camino Real business in Country Center shopping center, a trail along Village Drive, a trail to the Highway, and a right-in right-out only turn into Country Center Drive. The plan and design for this project would not need to be started until mid 2029, giving the Town time to save up for this project. Mayor Pierce said a stoplight at Hwy 160 and Hwy 84 is a bigger safety concern for the Town. She said she has concerns about completing a project that may be torn out when the County decides to update South Pagosa Blvd. Staff said the HSIP grant can only be used for off-highway projects. The Town Council supports staff moving forward with the grant application at this time. 2. Update on Flood Recovery Project Manager, Kyle Rickert, provided an update on the planning and construction for flood recovery projects. The bank stabilization at the museum has begun and should be complete in the next week or two, weather permitting. The debris removal will commence in the next three weeks near the museum and near the Apache Street Bridge. The Overlook area rock stabilization and debris removal will be next on the schedule. IX. NEW BUSINESS 1. Reservoir Hill Park Potential Expansion Funding Council Member Lindner provided an update on the Reservoir Hill funding committee's progress. This committee was established to assist with finding funding to purchase the 303 acres directly south of Reservoir Hill. Grant applications have been submitted to the Forest Legacy Program, with feedback expected in April-May. If awarded, a match of approximately $2 million will be required. This is where the committee comes in to investigate additional funding options. The Committee has researched grants with the Regional Partnerships Initiative (RPI) through Colorado Parks and Wildlife and Great Outdoors Colorado (GOCO), and the Forest Restoration and Wildfire Risk Mitigation (FRWRM). An RPI grant could be awarded up to $5 million for these types of projects. Staff said the Town was awarded a grant from FRWRM for the planning of forest health. Council Member Lindner said the Committee talked about building awareness to raise funds for the match and how this purchase will help in the master parks plan. He said he wants to support uptown parks, but believes this Reservoir Hill purchase is a legacy project, and the focus needs to be on this project first. Council Member Bergon said messaging the award of the FRWRM planning grant will help to show the Town is working toward healthy, resilient forests. 2. Apache Street Property RFP for Workforce Housing The 1/2 acre property located at the corner of Apache and 5th Street was originally purchased by the Town for workforce housing as part of the Town and Servitas’ public- private partnership. Staff is staged and ready to submit an RFP to developers to provide this property for the development of workforce housing with the Town Council's consideration for median income categories, deed restrictions, etc. These considerations could be structured Page 3 of 5 [PAGE 4] Town Council February 17, 2026 to allow for these items as negotiable based on the respondent’s development and project p roposals. The RFP is open for creative ideas from developers. X. PUBLIC COMMENT None XI. EXECUTIVE SESSION 1. Executive Session per C.R.S. 24-6-402(4)(b): For the purpose of a conference with the Town's legal counsel regarding specific legal questions pertaining to the September 10, 2025, Intergovermental Agreement between the Town and Archuleta County regarding the Tourism Advisory Board. 2. Executive Session per C.R.S.24-6-402(4)(a): Disscusion concerning the purchase, acquisition, lease, transfer, or sale of any real, personal, or other property interest related to Project 102. 3. Executive Session per C.R.S. 24-6-402(4)(f): Discussion of personnel matter regarding the Town Manager's annual evaluation. Council Member Lindner moved to enter executive session per C.R.S. 24-6-402(4)(b) for the purpose of a conference with the Town's legal counsel regarding specific legal questions pertaining to the September 10, 2025, intergovernmental agreement between the Town and Archuleta County regarding the Tourism Advisory Board, and per C.R.S. 24-6-402(4)(a) for discussion concerning the purchase, acquisition, lease, transfer, or sale of any real, personal, or other property interest related to Project 102, and per C.R.S. 24-6-402(4)(f) for discussion of personnel matter regarding the Town Manager's annual evaluation, Council Member deGraaf seconded. Motion Passed Town Council entered executive session at 6:08 pm. Mayor Pierce called the meeting back in regular session at 7:40 pm. XII. RECONVENE IN OPEN SESSION 1. Council may act in open session on item(s) discussed in Executive Session. Council Member Martinez moved to increase the severance package from 3 months to 6 months for the Town Manager for his good performance, Council Member deGraaf seconded. Motion Passed XIII. MAYOR, COUNCIL, TOWN MANAGER COMMENTS/UPCOMING AGENDA ITEMS Council Member Lindner said he would like to have a work session in April to discuss a land acquisition master plan. A Town Council goal-setting retreat is set for May 15th. Page 4 of 5 [PAGE 5] Town Council February 17, 2026 XIV. UPCOMING COUNCIL MEETINGS March 3, 2026 at 5:00 pm: Regular Council Meeting March 17, 2026 at 5:00 pm: Regular Council Meeting March 23, 2026 at 5:00 pm:Joint Town Council and County Commissioners Work Session April 8, 2026 at 5:00 pm: Special Town Council Meeting April 21, 2026 at 5:00 pm: Regular Council Meeting April 27, 2026 at 5:00 pm: Joint Town Council and County Commissioners Work Session XV. ADJOURNMENT Mayor Pierce adjourned the meeting at 7:52 pm. Shari Pierce Mayor Page 5 of 5