Montrose, CO — City Councilors met for a work session on Monday morning, July 20, to hear the details about a victim services grant, an application for annexation, an allocation for affordable housing, and an ordinance concerning electrical-assisted bicycles.
Mayor Michael Badagliacco, Dave Frank, J. David Reed, Ed Ulibarri, and Adam Woodden met in the City Council Chambers at the Elks Civic Building, along with city staff.
The following is a summary of the primary topics discussed during the meeting.
Watch the meeting on the city’s YouTube channel
Victim Assistance Law Enforcement (VALE) Grant Authorization
Deputy Police Chief Larry Witte and Victim Services Coordinator Chantelle Bainbridge presented a proposal for the City of Montrose Police Department to apply for a Victim Assistance Law Enforcement (VALE) Grant through the 7th Judicial District Victims Assistance Board for $61,104 to cover a portion of the victim advocates’ salaries.
In 2021, the State of Colorado passed legislation requiring suspects to be advised within 48 hours of arrest, beginning in April 2022, which requires Victim Services to contact crime victims on weekends to discuss their rights, inform them about a protective order, and ensure they are able to exercise their right to be present and speak.
Funding from the VALE program would enable the Montrose Police Department to provide victim services seven days a week, including weekend advisement coverage, and help victims obtain civil protection orders, apply for crime victim compensation, and access other community resources.
The Montrose Police Department employs a full-time victim services coordinator and one full-time victim advocate to ensure compliance with state law and to provide services to crime victims. The grant, if received, would cover a portion of the victim services coordinator’s salary ($34,324) and victim advocate’s salary ($26,780). Every two years, the city also applies for a Victims of Crime Act (VOCA) grant through the Colorado Department of Public Safety to help cover the remainder of the victim advocates’ salaries.
The City of Montrose has successfully applied for VALE grants for over 20 years.
Locust Road Addition Annexation
Senior Planner William Reis presented an overview of the proposed Locust Road Addition annexation application and its associated zoning.
The annexation is approximately 4.2 acres in size, and includes the primary parcel, as well as some unannexed portions of Locust Road. It is within the city’s Urban Growth Boundary and the city’s water and sewer service areas.
The proposed zoning for the property is “R-2” Low Density District, which is intended to provide primarily for development of single-household detached and duplex dwellings, along with certain other compatible land uses. The proposed zoning is compatible with the Comprehensive Plan and existing zoning and general conditions in the area, as adjacent properties are zoned “R-2” Low Density District “R-3” Medium Density District.
A resolution setting a hearing date for the annexation will be considered at the City Council’s regular meeting on August 4.
2026 Private Activity Bond Allocation
Community Development Director Jace Hochwalt updated the City Council about a proposal to assign the city's 2026 Private Activity Bond (PAB) allocation to the Colorado Housing and Finance Authority (CHFA) to support affordable housing and homeownership opportunities in Montrose.
The Internal Revenue Service (IRS) annually provides each state with a federally established per capita allocation of tax-exempt Private Activity Bond (PAB) authority, commonly referred to as the state's Private Activity Bond Volume Cap or "Cap." PABs are tax-exempt bonds that allow private entities to finance projects that provide a public benefit, including affordable housing, first-time homebuyer mortgage programs, and certain other qualified facilities. Because the interest earned by bondholders is exempt from federal income tax, these bonds provide lower-cost financing for eligible projects.
The State of Colorado receives its annual allocation and distributes the authority statewide among issuing authorities and local governments. As Colorado's population has grown, the state's annual volume cap has increased. For 2026, the allocation is $1,474,868 for the City of Montrose, representing a 5.6% increase over the 2025 allocation.
The City of Montrose has historically elected not to issue PABs directly due to the administrative requirements, ongoing compliance obligations, and potential financial and legal responsibilities associated with serving as the bond issuer. Instead, the city has annually assigned its PAB allocation to the Colorado Housing and Finance Authority (CHFA). This approach allows the community to benefit from the city's allocation while utilizing CHFA's expertise in administering bond-financed housing programs and issuing the bonds on behalf of qualified projects.
CHFA uses these allocations to support affordable housing development and preservation, as well as homeownership opportunities throughout Colorado. In 2020, CHFA partnered with the city to use the PAB allocation to support Steele Properties, LLC's rehabilitation of the San Juan Apartments, preserving affordable housing for seniors (62 years of age and older) and residents with disabilities receiving Section 8 rental assistance.
In addition to supporting affordable rental housing, CHFA has used the city's allocated bond authority to provide below-market financing through its Single Family Homeownership Program. Since 2021, CHFA has issued 120 home mortgage loans in Montrose totaling more than $36.1 million, assisting 319 individuals with homeownership opportunities.
There is no direct fiscal impact to the city from allocating its Private Activity Bond volume cap to the Colorado Housing and Finance Authority (CHFA). The allocation supports affordable housing and homeownership opportunities that can improve housing affordability and stability, strengthen the local workforce, and contribute to the community's long-term economic vitality. This annual allocation allows the city to maximize the benefit of its federal bond authority without assuming the costs, risks, or administrative responsibilities of issuing bonds directly.
Municipal Code Amendments for Electrical-Assisted Bicycles and Classless Electrical-Assisted Vehicles
Assistant City Attorney Matt Magliaro presented details of a proposed ordinance to provide clear local regulations on the operation of electrical-assisted bicycles and classless electrical-assisted vehicles within the municipal limits of Montrose.
The ordinance would add new sections to Title 9, Chapter 10 Parks and Title 10, Chapter 1 Traffic, and amend Title 10 to include modifications to the adopted 2020 Model Traffic Code.
The ordinance was prepared at the request of the Montrose City Council to address safety issues associated with the operation of electrical-assisted bicycles and electrical-assisted vehicles within city limits. In developing the draft ordinance, staff focused on resolving concerns about the high-speed use of these vehicles on city streets, predominantly by juveniles, and on paved paths, sidewalks, and designated trails within the municipal parks system where there is a potential for collisions with other park users, such as other cyclists and pedestrians. The ordinance also addresses the impacts that electrically assisted bicycles and vehicles have on municipal park infrastructure from off-trail operation.
The proposed ordinance establishes clear rules on the types of electric vehicles that are allowed on certain throughways, sets speed limits within the parks, and prohibits off-trail riding subject to exceptions.
Magliaro noted that the city adopted the 2020 State of Colorado Model Traffic Code in 2023, which defines electrical-assisted bicycles in general as: “a vehicle having two or three wheels and fully operable pedals, and an electric motor not exceeding 750 watts of power.” It further organizes electrical-assisted bicycles into Class 1, 2, and 3 classifications.
In general, Class 1 and 2 electrical-assisted bicycles are capable of a maximum speed of 20 miles per hour, with the difference between the two being whether pedaling assistance is required for motor assist activation. Class 3 electrical-assisted bicycles are capable of a maximum speed of 28 miles per hour, require pedaling assistance for motor operation, and must be fitted with a speedometer. The code also includes standards and equipment for bicycles that are equipped with a toggle switch or programmable mode that provides for operation within two or more of the defined classes.
Because the classes of electrical-assisted bicycles were codified in 2017 and have not been updated to address what is currently being sold to the public and encountered on the roads and walkways, the regulations are impractical to enforce.
The ordinance would restate the definitions already in the model traffic code for electrical-assisted bicycles, but define where those who own each class may permissibly operate. The ordinance would also create a new definition of “classless electrical-assisted vehicles” to address bicycles and other electric-assisted vehicles that fall into the gap between state law and current technology. These vehicles would be prohibited from operation upon or within any street, alley, roadway, shoulder, median, sidewalk, crosswalk, pedestrian or multi-use paths, trail, park, open space, greenbelt, public right-of-way, or other city-owned or city-controlled property. The ordinance would also add ‘classless electrical-assisted vehicles’ to the scope of vehicles that are covered by the careless and reckless driving laws.
City Council Discussion
The City Council engaged in a lengthy discussion involving both elected officials and the public regarding whether it would be appropriate to make a short-notice amendment to the regular meeting agenda for Tuesday, July 21. The agenda amendment would be whether to provide notice to the Montrose County Clerk regarding the possible addition of a question on the November 3, 2026, Coordinated Election ballot related to amending the Montrose City Charter. Staff was directed to add the item to the agenda and update the city’s official posting locations.
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