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City Councilors met for a work session on Tuesday afternoon, October 20, to meet new city employees, rescind a disaster declaration from the summer wildfire season, hear presentations regarding community issues, and review a number of proposals for ongoing city work.
Mayor Michael Badagliacco, 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 here:
INTRODUCTION OF NEW CITY EMPLOYEES
City department heads introduced several new city employees.
Jill Suarez-Flynn, Utilities Crew Member
James Allen, Utilities Crew Member
Christian Gonzalez, Utilities Crew Member
Daryl James, Utilities Crew Member
Daniel Caster, Fleet Mechanic
Caryn Samford, Customer Service Technician
HISTORIC PRESERVATION COMMISSION APPLICANT INTERVIEWS
City Councilors interviewed Kenneth Huff for the city’s Historic Preservation Commission. Two other applicants, John Eloe and Darlene Mora were not present and will be interviewed at another time.
The council will vote at an upcoming meeting to appoint new members to the commission.
MONTROSE REGIONAL HEALTH UPDATE
The City Council received an update from Montrose Regional Health Chief Executive Officer Jeff Mengenhausen.
Mengenhausen said the hospital is working to keep up pace with the growth of the Montrose community, adding that the organization is working with insurance companies to receive payments for outstanding services.
The council and Mengenhausen spoke about a number of issues facing the Montrose community and how healthcare services can remain strong despite recent setbacks, including the hospital’s recent decision to cut expenses and staff.
FEE SCHEDULE REVISIONS FOR 2027
City Councilors were presented with proposed revisions to the city’s fee schedule effective January 1, 2027.
City Clerk Lisa DelPiccolo said proposed fee schedule revisions are brought to City Council each year for discussion at an October work session. Adoption of the fee schedule for the upcoming year is considered by City Council at the first regular meeting in November in conjunction with the first reading of the budget ordinance.
RESCINDING THE EMERGENCY DECLARATION FOR THE OURAY WILDFIRE
City Councilors were presented with a proposed resolution to rescind the City Manager’s Declaration of a Local Emergency.
Interim City Manager Ann Morgenthaler said on June 29, 2026, in response to the Gold Mountain Fire near Ouray, Colorado, the incredibly dry conditions in Montrose County and other nearby counties, the overall threat of fire danger in the region, the possibility that the City of Montrose may be an evacuation location for those fleeing regional wildfires, and the desire to quickly stop the sale of fireworks in the City of Montrose, the city manager signed a Declaration of the City Manager Declaring a Local Emergency. Per the Colorado Revised Statutes, a city manager may issue an emergency declaration in certain circumstances and for up to seven days.
On July 6, 2026, the City Council approved an Emergency Ordinance Extending the City Manager’s Declaration of an Emergency. This was done to ensure that the City of Montrose was prepared in case the existing wildfires or evacuees from the wildfires directly impacted the city. If Ouray and Ridgway were evacuated, the city expected to see an influx of approximately 5,000 people into Montrose. By declaring an emergency within the City of Montrose ahead of time, the city avoided the need to call a special meeting during a disaster or emergency and instead be prepared to focus on immediate response needs should they arise.
Fiscal Impact
The City of Montrose expenditures related to supporting both Ouray County and Montrose County during the city’s emergency declaration totaled $26,863.49. The City of Montrose is seeking reimbursement from the State of Colorado in the amount of $10,025.35 for the use of Emergency Manager Paul Eller as the Emergency Operations Center Manager for Ouray County and for the Montrose Police Department to provide traffic control and security for the forward operations base in Ouray County. The City of Montrose is not seeking reimbursement of the remaining expenditures due to existing mutual aid agreements and the decision to donate expenditures that were related to the city providing a helicopter landing location, grey water disposal, and some treated water.
**BLACK CANYON FLATS OGDEN FRONTAGE PIPING FUNDING REQUEST **
City Councilors were presented with a proposal to authorize $25,000 payable to Ridgway Valley Enterprises for piping of the stormwater/irrigation ditch along the Black Canyon Flats affordable housing project's Ogden Road frontage sidewalk.
City Engineer Scott Murphy said the project is necessary to ensure a safe pedestrian connection for residents of this area.
THE SHEPHERD’S HAND SHELTER FUNDING REQUEST
City Councilors were presented with an expenditure authorization request of $28,597 to The Shepherd’s Hand for seasonal start-up costs and November operating expenses associated with the Brown Center, a seasonal overnight shelter serving individuals experiencing homelessness.
Community Development Director Jace Hochwalt said The Shepherd’s Hand is a Montrose-based 501(c)(3) nonprofit organization dedicated to serving individuals experiencing homelessness and economic hardship. The organization provides essential services, including meals, showers, laundry facilities, clothing, hygiene supplies, and assistance connecting individuals with housing, employment, and other community resources. These services address immediate needs while helping individuals work toward greater stability and self-sufficiency.
The Shepherd’s Hand and Montrose Lighthouse, Inc. have consolidated their operations to improve coordination of services for individuals experiencing homelessness in the Montrose community. As part of this effort, The Shepherd’s Hand now operates the seasonal overnight shelter at the Brown Center, a city-owned facility located at 3325 North Townsend Avenue. The Brown Center has historically served as a seasonal emergency shelter during the colder months, operating from November through April and accommodating up to 30 individuals.
The shelter provides overnight accommodations and complements The Shepherd’s Hand’s daytime services by connecting individuals with basic necessities and supportive resources.
The Shepherd’s Hand has requested $28,597 in city funding to assist with seasonal start-up expenses and November operating costs for the Brown Center shelter. During recent discussions with the organization’s board, it was indicated that the shelter’s opening may need to be delayed until December unless additional funding is secured. The estimated cost to operate the shelter is approximately $89,597 per season, and The Shepherd’s Hand does not currently have sufficient reserves to cover these expenses. The requested funding would help address this funding gap and support the planned seasonal opening and continued operation of the shelter.
City staff proposed funding the request under the affordable housing allocation of the Ballot Measure 2A hotel excise tax, which currently has more than $500,000 in unallocated funds available. Although the expenditure does not directly fund affordable housing construction, maintaining emergency shelter capacity supports the city’s broader efforts to address housing insecurity and expand access to affordable housing resources.
PROPOSITION 123 AFFORDABLE HOUSING OPT-IN
City Council received background information about a proposed resolution authorizing the City of Montrose to opt in to Colorado Proposition 123 for the 2027–2029 funding cycle and maintain eligibility for state funding opportunities that support the development and preservation of affordable housing.
Community Development Director Jace Hochwalt said Colorado Proposition 123 was approved by Colorado voters to establish a dedicated state funding source to increase the supply of affordable housing and support housing initiatives. The program creates funding opportunities for local governments, nonprofit organizations, land trusts, tribal governments, and private developers through various programs administered by the Colorado Department of Local Affairs, Division of Housing (DOH), and the Colorado Office of Economic Development and International Trade (OEDIT). Certain programs are administered through the Colorado Housing and Finance Authority (CHFA).
Proposition 123 funding supports a range of eligible activities, including the development and preservation of affordable housing, land acquisition for future housing projects, and other initiatives designed to expand housing opportunities for qualifying households. By providing an additional source of state funding, the program helps communities address local housing needs, advance projects that may otherwise face financial constraints, and leverage partnerships to increase the availability of affordable housing.
To access these funding opportunities, local governments must formally opt in and commit to meeting the state's affordable housing production requirements over each applicable three-year cycle. This commitment establishes a baseline for qualifying affordable housing units and helps ensure that participating communities are actively contributing to the expansion of the state's affordable housing supply. Participation also allows eligible organizations and developers operating within the jurisdiction to pursue available Proposition 123 funding for qualifying projects.
During the 2023–2026 cycle, the City of Montrose committed to approving at least 162 qualifying affordable housing units over the three-year period. The city exceeded this requirement by 59 units, with 221 qualifying units approved. The city also implemented an expedited review process in 2024 to facilitate the timely review and advancement of affordable housing projects.
The city's participation in Proposition 123 has helped secure significant state investment in local housing initiatives. Black Canyon Flats received over $8 million in Proposition 123 equity funding to support a 60-unit mixed-income housing development. Additionally, Community Options, Inc. received a $1.25 million Proposition 123 land-banking award for a proposed 50-unit affordable housing development. The Mexican American Development Association (MADA) was also awarded $475,000 in land-banking funds in September 2026 for a future project. These awards demonstrate how Proposition 123 funding can support both near-term housing development and the acquisition of land for future affordable housing opportunities.
As Proposition 123 enters the 2027–2029 cycle, the city has the opportunity to renew its participation and maintain eligibility for these state funding resources. Based on current estimates, the city's affordable housing production commitment for the upcoming cycle is expected to be approximately 125 units over three years, subject to final confirmation by the state. Continued participation will build on the city's successful record of exceeding its prior commitment, strengthen partnerships with housing providers, and provide additional opportunities to secure funding for projects that expand affordable housing availability in Montrose.
**LANDFILL AGREEMENT EXTENSION RECOMMENDATION **
Council heard a proposal to approve an extension of the Bruin Waste Landfill Agreement for up to one year.
Public Works Superintendent Nik Pridy said the city’s solid waste operation collects trash from residential and commercial customers and delivers it to a landfill. The city has used Bruin Waste for landfill services for two years. The City of Montrose delivers solid waste to Bruin Waste’s transfer station near the airport, and Bruin transfers that waste to a landfill near Naturita, CO. These services have resulted in significant savings to city operations over the past two years compared to other bidders. Bruin has performed very well and is a good partner in this operation.
Bruin Waste is proposing a rate increase with this contract renewal. The tipping fee tonnage rate would increase from $66.37per ton to $71.00 per ton. This increase aligns with the annual CPI increase, labor cost increases, and higher fuel costs. A cost increase was anticipated in the 2026 and 2027 budgets and does not require an increase to customer rates.
**FINANCIAL STATEMENTS AND ANNUAL AUDIT PRESENTATION **
City Councilors were presented with the city's 2025 Financial Statements and Annual Audit Presentation.
Jim Hinkle, representing the city’s contracted independent auditor, Hinkle & Company, provided an overview of the city’s 2025 audit report, including an explanation of the audit process. The full audit report will be posted on the Finance Department webpage at CityofMontrose.org/Finance.
**2027 CITY COUNCIL MEETING SCHEDULE **
The City Council was presented with a proposed 2027 City Council meeting schedule and was asked to give feedback to determine if any changes are needed.
City Clerk Lisa DelPiccolo said section 1-9-3 of the Municipal Code sets the City Council meeting schedule as the first and third Tuesdays of each month.
Mayor Badagliacco suggested that the council move work sessions to Tuesday at noon. Changes to the regular meeting schedule require City Council action, while work sessions can be scheduled as City Council desires.
**CITY COUNCIL DISCUSSION **
City Councilors decided to select finalists for the vacant At-Large City Council seat by each emailing a list of their three preferred candidates to city staff. This approach will allow the council to reduce the full list of applicants and focus its selection efforts. As of Tuesday, nine applications had been received by the City Clerk. Once the final group of applicants is decided, staff will schedule interviews between the council and the applicants.
STAFF REPORT
Nik Pridy provided details about the city’s annual leaf pickup service that will run from October 26 through December 3. Details about the service are available on the city’s website.
Police Chief Blaine Hall provided a brief update about the Police Department’s efforts to address traffic and parking enforcement concerns recently reported by residents living near Montrose High School.
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All City Council meetings are recorded and made available online via the city’s website and cable channels 191 for Charter subscribers and 970 for Elevate subscribers. Replays of council meetings are also broadcast at 6 p.m. on the same channels on days that the council is not in session.
In addition, each regular meeting is archived on the City of Montrose’s YouTube channel.
Residents can watch all regular City Council meetings and work sessions live and on-demand through the city’s Public Meetings Portal.