2017_11_28_SS Packet UPDATED
M ayor
Suzanne Jones
Council M e mbe r s
Matthew Appelbaum
Aaron Brockett
Jan Burton
Lisa Morzel
Andrew Shoemaker
Sam Weaver
Bob Yates
Mary Young
Council Chambers
1777 Broadway
Boulder, CO 80302
November 28, 2017
6:00 PM
City M anage r
Jane Brautigam
City Attorne y
Thomas A. Carr
City Cle rk
Lynnette Beck
ST UDY S E S S ION
BOULDE R CIT Y COUNCIL
6-7:30 P M L ibrary Master P lan Update
7:30-9 P M Climate Commitment
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City Council Study Session Page 1 of 76
por lo menos 3 negoc ios dias antes de la junta.
Send elec tronic presentations to email address: CityClerkStaff@bouldercolorado.gov no later than
2 p.m. the day of the meeting.
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C I T Y C OU N C I L AGE N D A I T E M C OVE R S H E E T
ME E T I N G D AT E :
Nov ember 28, 2017
AG E N D A T I T L E
6-7:30 PM Library Master Plan Update
P RI MARY STAF F C O N TAC T
J ennifer Phares, 303-441-4394
RE Q U E ST E D AC T I O N OR MOT I ON L AN GU AG E
6-7:30 p.m. Library Master Plan Update
AT TAC H ME N T S:
Description
Library Master P lan Update
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STUDY SESSION MEMORANDUM
TO: Mayor and Members of City Council
FROM: David Farnan, Library and Arts Director
Jennifer Phares, Deputy Library Director
Devin Billingsley, Senior Budget Analyst
DATE: Tuesday, November 28, 2017
SUBJECT: Boulder Public Library Master Plan project update
EXECUTIVE SUMMARY
The purpose of the study session is to update City Council on the status of the Boulder
Public Library (BPL) Master Plan and to present options for funding the goals and ensure
long-term financial sustainability of the library system. Staff will provide the following
information for council’s consideration:
• Brief overview of what the library is and does.
• Major accomplishments since the 2007 Boulder Public Library Master Plan.
• Highlights from input received from community.
• Brief overview of significant projects planned for the next five years and
estimated ongoing costs associated with each.
• Outline of options for funding these projects and ensuring financial sustainability
for years to come.
It is assumed the Council, Library Commission and staff all agree that the community
deserves a great library system. To achieve this, a financial sustainability model for the
BPL should be explored. If there is a desire to expand programs and services to meet
community expectations as well as to address operating needs, then enhanced funding
options need to be explored. Staff seeks direction from council to investigate library
funding and governance structure options. A summary of the options is presented at the
end of this memo and will be included in the Library Master Plan update. During the
study session, the staff and Library Commission would like to discuss the following four
questions with council.
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QUESTIONS FOR COUNCIL
1. Does council have questions about the role of the library in the 21st century?
2. Does council have questions about the community input related to expanding
programs, services, and new facilities?
3. Does council have questions about the options for funding and governance
structure of the library system outlined in this memo?
4. Does council have any direction for library staff to pursue additional analysis of
and planning for the funding and governance options to be presented in the
upcoming, updated BPL master plan tentatively scheduled to be presented for
adoption in March 2018?
MASTER PLAN PROJECT UPDATE
BPL’s master plan update began in 2016 with research about community needs and
issues identification. This research entailed reviewing city wide master plans from
multiple departments and review of community reports such as the Trends Report from
the Community Foundation, the Boulder Valley Comprehensive Plan, and the
Community Perception Assessment. This research and subsequent interviews with local
leaders in business, education, human services and city government provided a
framework for developing questions and surveys for gathering the community’s input.
Independent consultants were hired to conduct and analyze the results of an online
community survey, conduct focus groups, interviews, and benchmark Boulder against
comparable libraries in the state of Colorado and nationally. Eighteen of 100 invited
community leaders participated in a Master Plan Community Thought Leaders dialogue
to talk about how the library may contribute to making Boulder the kind of community its
residents desire. More than 350 community members participated in a two-day project
kick-off event, The Library Lab in which participants were asked to share their ideas for
the future of BPL. The community survey was completed by 1,752 respondents. Eight
focus groups were conducted with 86 participants.
During September and October 2017, BPL hosted four open house meetings and attended
the citywide “What’s Up Boulder” open house to check in with the community about the
draft master plan goals. More than 180 community members participated in these events.
The library commissioners have provided staff with critical support and direction
throughout the project at monthly meetings, during Library Commission’s annual retreat,
and several study sessions by reviewing the information collected from the research,
giving input on the design of the community survey and engagement activities, assisting
the staff and consultants to host several of the events, and giving input on the
development of the draft master plan goals and the options to ensure financial
sustainability for the library system.
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OVERVIEW
What BPL is
Libraries in the 21st century are no longer simply depositories of books and information.
They are community gathering places, vital components in a region's knowledge
economy, a resource for families, and a great social equalizer providing free and open
access to resources for everyone in the community1,2. BPL plays critical roles in helping
children learn to read and assisting adults in acquiring new skills, earn high school
diplomas, and find jobs. BPL supports immigrants by offering free classes and resources
so they can learn to speak, read, and write English, and apply for U.S. citizenship. BPL
also provides patrons with access to and training on basic and sophisticated, high-end
technology to which they may otherwise not have access. In an emerging freelance
economy, libraries are re-asserting their position as the original co-working space and
BPL is no different, serving many professionals in this way. Perhaps as much as
anything, BPL is a welcoming public space that is free and open to everyone.
With nearly one million visitors in 2016, BPL is one of the busiest public locations in the
city of Boulder. Through partnerships with the Boulder Small Business Development
Center, Boulder Housing Partners, Intercambio Uniting Communities, The Latino
Chamber, the Boulder County Farmers’ Markets, University of Colorado’s ATLAS
Institute, and CU Science Discovery, and several start-up entrepreneurs and small (and
not so small) businesses, BPL is a critical public anchor for the community in business,
sustainability, and cultural development. The community makerspace, BLDG 61, is a
model for libraries internationally and functions as a de facto incubator for innovators,
entrepreneurs, and inventors with multiple patent applications and several businesses
launching from the space in the less than two years it has been in operation.
What BPL does
Libraries are still about books. They are BPL’s brand, but they are not its sole business.
BPL had slightly more than 1.5 million circulations of materials last year. That equates to
nearly 15 books and movies for every man, woman, and child in Boulder. More than 40%
of those were circulations of children's books. Providing patrons with library materials is
a substantial portion of BPL’s operations. Purchasing, processing and physically moving
books to and from patron's homes and back to the shelves at the library accounts for 60 to
70% of BPL’s ongoing operating costs from material costs to the cost of staff doing the
work. In addition to circulation of physical materials, BPL has seen nearly 160% growth
in patrons’ use of e-books, and streaming music and movies over the last four years.
While it seemed like a possibility a few short years ago, that the size of libraries would
start to be reduced in response to patrons shifting their use to e-books, the explosive
growth in popularity and use of e-books and streaming services has not correlated with a
decline in demand for print resources. Some patrons find it more convenient to read
multiple mediums. BPL’s circulation of physical materials, e-books, and streaming music
1 Rising to the Challenge – Re-Envisioning Public Libraries. Aspen Institute Report.
http://csreports.aspeninstitute.org/documents/AspenLibrariesReport.pdf
2 Branches of Opportunity. Center for an Urban Future.
https://nycfuture.org/pdf/Branches_of_Opportunity.pdf
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and movies is higher than it has ever been. The transition of some patrons from using
print materials to exclusively using e-books and streaming services has allowed the
library to reallocate some of the space that was once devoted to housing print collections
to create more space for individuals and groups to use the library. Similarly, the number
of visitors to Boulder’s libraries continues to grow.
Last year, BPL worked with its consortium partners and other local municipal libraries to
create a non-profit Flatirons Library Consortium (FLC). Consortium operations, formerly
managed by BPL staff, were outsourced and the FLC opened its membership to more
municipal libraries. The FLC has more than doubled its membership, making available
twice as many books and materials to BPL patrons with no increase in direct cost.
Further, expanding the FLC strengthened its member libraries’ ability to negotiate
contracts with book and database vendors as a group, allowing all libraries to purchase
more materials at reduced cost.
Over the past three years, attendance at BPL’s children and family literacy-based
programs like storytime, 1000 Books Before Kindergarten, book-rich environments, and
summer reading have grown by nearly 100%. In addition, STEAM (Science, Technology,
Engineering, Art, Math) programs, which did not exist three years ago, now bring in
12,000 to 15,000 participants annually. Participants range in age from 4 to 94, and are
learning new skills and experimenting with everything from technology to textiles to
bioengineering and wood craft, together. With more than 100,000 patrons attending
programs in 2016, BPL’s program attendance is one of the highest in Colorado, and rivals
much larger library systems.
The community makerspace, BLDG 61, launched almost two years ago, attracting
thousands of participants and winning multiple awards. BLDG 61 programs have been
sustained by a series of community grants. BLDG 61 is a high-tech shop with laser
cutters and 3D printers, as well as a full-scale, advanced woodworking shop, and has
become a platform for local entrepreneurs to test their ideas with an audience.
Two notable, grant-funded BLDG 61 programs are: the Tree Debris to Opportunity
(TreeOpp) program, funded by the John S. and James L Knight Foundation’s Cities
Challenge Grant; and the Build, Learn, Design, Grow Apprenticeship, funded by the
Jacques Littlefield Foundation. The TreeOpp program provided the opportunity for
persons currently experiencing homelessness to learn advanced wordworking techniques
from BLDG 61 creative technologist staff. Participants in the 12-week program used
wood harvested from city Ash trees that were infested with Emerald Ash Borer.
Participants sold the tables, cutting boards and decorations they created at the Boulder
County Winter Market, with the revenues being used to continue support for the program.
The Build, Learn, Design, Grow Apprenticeship provided an apprenticeship opportunity
to 36 teen students in BLDG 61. Each student was given a stipend and a budget to
develop an idea for a product or amenity that could be used in business or benefit the
community. BLDG 61 also hosted several well-attended, low-tech textile and engineering
workshops from spinning wool to learning about the physics of fidget spinners.
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BPL continues to be the go-to place for many visitors and community members who do
not have access to computers and high-speed internet at home. BPL provides patrons with
free high-speed wireless internet access, public computers, and advanced productivity
software.
Put simply, the growth and success experienced by BPL during the past four years has
been remarkable! Since 2014, BPL increased the hours open to the public by 11%,
opened a new “corner” library in north Boulder, and expanded program and event
offerings resulting in a 100% increase in overall program attendance. The number of new
borrowers grew by 20%. Visits to the libraries have grown 8%. E-book use grew by
160%. In 2016, due in part to this growth and to innovative partnerships and creative
programs, BPL was honored as 2016 Colorado Library of the Year by the Colorado
Association of Libraries.
BPL staff accomplished all of this with minor changes to the budget and a 2% reduction
in full-time equivalent (FTEs) staff positions.
Four years ago, along with the renovation of the Main Library, approximately $1 million
was invested in new, automated materials sorting systems. The systems were designed to
more efficiently process returned materials and reduce the number of physical touches to
materials by staff. Materials sorting systems were installed at the Main Library, and at the
George Reynolds and Meadows branch libraries. BPL also invested in patron self-service
stations to check out materials and pay late fees. These investments enabled the library to
restructure and reallocate staff to provide more individual and personal customer service,
open the BLDG 61 Makerspace, and to create a new workgroup that focuses on
programs, events, and outreach to the community.
It is worth noting that much of BPL’s success with new programs and the dramatic
increase in attendance over the past three years is attributable to a significant degree to an
increase in investment from the Boulder Library Foundation (BLF). The BLF is a 501(c)
(3) nonprofit organization led by a volunteer board of directors and supported by
individual donors and community partners in Boulder. In the past four years, the BLF
contributed approximately $1.2 million to BPL to increase program offerings. The
foundation’s investment was vital in launching STEAM programs, the Jaipur Literature
Festival, sensory concerts for families with children on the autism spectrum, the
continuation of free films and concerts, as well as all the upfront costs to build and equip
the BLDG 61 Makerspace. BLF’s generosity and leadership has been vital in introducing
a whole new generation of people to the library. BPL has used the funds from the BLF to
leverage another $300,000 in grants and community support.
The foundation of the public library in America has always been about the principles of
free and open access to information and literacy in all its forms, and the protection of
First Amendment rights for everyone. From learning to read, to learning English, to
learning advanced computer coding and programming, to becoming eligible to apply for
U.S. citizenship, to obtaining a high school diploma or advanced degree, the library is an
informal learning platform that respects the rights of the learner above all else. BPL is a
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bridge for the community, providing the space for self-directed, life-long learning
experiences and tools for hands-on collaboration with librarians, public partners,
volunteer tutors, and creative technologists to learn, explore and enrich its members’
lives.
BPL Future
Libraries in general, and BPL in particular, are experiencing an historic resurgence as
community gathering places. BPL is the busiest library of its size on a per-capita basis in
Colorado. But BPL is not just a busy place, like all public libraries, it is a core service in
a democratic society.
Civil society performs a number of critical functions; it provides a buffer
between the individual and the power of the state and the market, it creates
social capital, and it develops democratic values and habits. By design
and tradition, the public library is the essential civil society institution.
Through the provision of space, information, access to tools, and
inspiration, it enables all the others.
Don E. Eberly. The Meaning, Origins and Applications of Civil Society
BPL is a trusted and inclusive place of learning and innovation, a place for the
community to come together, for its members to talk to and learn from each other about
the issues of the past, present and future. If BPL is going to continue to fulfill its potential
as being an engine of social and economic mobility, a platform for civic education and
dialogue, and to create hands-on, collaborative learning environments which address the
needs of 21st century learners, then far greater financial and institutional support will be
required in the years ahead.
The library master plan will outline the community’s vision and goals for BPL and guide
investment priorities for reinvesting and renewing library services to build a robust
community library system for the next 10 years. The updated Boulder Public Library
Master Plan will include goals to accomplish the following:
• New buildings and designs to meet current and future needs.
• Increased staff to expand library hours so all locations are open on a consistent
schedule at least 66 hours per week
• Further development of creative partnerships with both non- and for-profit
companies that are mission-driven, and with missions consistent with BPL to
continually expand the library’s program offerings.
• Development of workshare and incubator spaces by expanding on the concept of
the BLDG 61 Makerspace in other appropriate library facilities.
• Increased marketing and promotion of library services to convey the value of the
community’s investment.
• Building further upon successful collaborations like the Flatirons Library
Consortium to expand library offerings to the community.
• Expansion of programs and services through outreach to underserved community
members.
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• Engage other city and civic agencies to partner with BPL to deliver services and
reach a broader representation of the community by extending BPL’s facilities as
neutral spaces for civic dialogue and discussion.
• Invest in the renovation of BPL’s north building to expand the rental of the
Canyon Theater at affordable rates to support the cultural life of Boulder and
address the community’s need for a mid-sized theater space.
These are some of the things the community asked of its library. But as important, or
perhaps more importantly, the staff and Library Commission ask that council not only
consider all the community goals and aspirations, but to also consider the options for
funding these goals and to manage the ongoing financial sustainability of BPL going
forward.
ACCOMPLISHMENTS SINCE THE 2007 MASTER PLAN
During the past 10 years, the library has accomplished most of the goals and objectives in
the 2007 Library Master Plan. Some of the most notable accomplishments include:
• Restoring library hours to provide greater access to information and
community resources. In April 2015, the library opened the George Reynolds
Branch Library and the Meadows Branch Library one additional day per week
(for seven days per week operation) with no budget impact. This was
accomplished by staff restructuring, and adjusting the schedule for operating
hours at the Main Library. These changes allowed the library to expand its
offerings of morning children’s storytimes.
• Security of facilities. In 2007, BPL’s budget was increased to hire a contract
security officer at the Main Library for 35 hours per week. The hours were
expanded to have one security officer on-duty all hours the Main Library was
open to the public in 2010.
• Leading edge center for information technology. While not likely what library
staff and the Library Commission envisioned when this goal was written more
than 10 years ago, opening the BLDG 61 Makerspace at the Main Library has
certainly fulfilled the intention of the goal for the library to provide a leading-
edge space, state-of-the-art technology, outreach and training for patrons.
• Library Facilities Renovation. In 2009, the library completed a facilities
sustainability study, which outlined capital needs to renovate and introduce
greater efficiency for maintaining city-owned library facilities. The Boulder
community approved a capital improvement bond ballot issue in 2011 that funded
$2.5 of $4.5 million in renovations of the Main Library. The renovations were
completed in April 2014, and included the creation of a new family-friendly
children’s area, a teen space, welcoming and open spaces that support a greater
feeling of safety in the facility, more and comfortable public seating, a café on the
library bridge, and more public meeting spaces. During 2015 and 2016, both the
George Reynolds and Meadows branch libraries received modest renovations,
reconfiguring staff space to improve efficiency of processing library materials and
to create more welcoming, patron-friendly spaces.
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• Automated materials handling, materials security, and self-service
equipment. From 2014 through 2016, new equipment was installed at the Main
Library and the Meadows and George Reynolds branch libraries to facilitate
automated check-in and sorting of library materials, patron self-service for
checking out materials and paying late fees, and to support inventory management
and security of library materials. The introduction of these technologies allowed
staff to focus on more direct, customer-focused service and improved patron
access to library materials.
• Flexible service points. In conjunction with the Main Library renovation, all
library staff members collaborated to create a customer service philosophy for the
library that models the city’s vision of “Service Excellence for an Inspired
Future.” From that philosophy statement, the front-line staff developed a model
for mobile service that was introduced when the renovation of the Main Library
was complete. Mobile service makes library staff more accessible to patrons by
bringing them out from behind the service desks to assist patrons wherever they
need it in the library. The change has been a win-win for patrons and staff alike.
Patrons receive a warm welcome when they enter the libraries and more
individual and personal service, and staff have found more satisfaction with their
work because they are able to make direct, meaningful connections with patrons.
While steps were taken to address both, two key goals from the 2007 Library Master Plan
were not fully realized: building a full-service north Boulder branch library and
expanding outreach. It is clear from patron use of the NoBo Corner Library, the
community’s response to the library’s outreach efforts focused on early literacy, and from
the results of the current master plan project community survey, that these are still
considered priorities by the community and therefore still worth accomplishing.
KEY ISSUES IDENTIFIED
BPL spent the past several months conducting an extensive community engagement
process for the master plan project. Several individual and stakeholder group interviews,
focus groups, and community feedback workshops were conducted. The community
survey received thousands of responses with detailed comments about what patrons value
about the library. Staff also read several recent city department master plans and the
Boulder Valley Comprehensive Plan - especially as it detailed projections of future
growth and character of neighborhoods to identify community priorities and needs
collected during those projects. Staff used the reports from the library’s patron database
Gale’s Analytics On Demand demographics analysis tool to analyze current and potential
future service areas by demographics such as population, households with children, and
economic and ethnic diversity. Staff also analyzed the locations of all current BPL
cardholders and the average length and time of vehicle trips to reach the nearest library
location. Several key community priorities and trends became apparent that staff and the
Library Commission would like to share with council now, before completion of the
updated Boulder Public Library Master Plan.
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New facilities
Most of the growth in Boulder over the last 30 years and the projected growth in the
future is primarily east and north of downtown Boulder3. While there is a consistent
homogeneity of the demographics throughout Boulder, the areas east and north show a
statistically significant percentage of households with children, more economic diversity
and a significantly higher percentage of households that speak a language other than
English at home (Attachment A). The residents of north Boulder and Gunbarrel
expressed enthusiasm to expand or open library facilities and services in those areas
during the focus groups and check-in meetings with the community on the draft Master
Plan goals. The survey also requested that respondents rank in importance a series of
ongoing and future projects. Gunbarrel and north Boulder residents placed a high priority
on opening or expanding services. Similarly, during all of the Master Plan community
engagement activities and meetings, many north Boulder residents requested that the
NoBo Corner Library be upgraded to a larger, full-service branch library. A full-service
north Boulder Library has been a goal for the library since the 2007 Boulder Public
Library Master Plan, and was originally envisioned as a top priority of the North Boulder
Subcommunity Plan in 1988.
Gunbarrel neighbors want more conveniently located and easier access to library
services. Most community members shared that their drive from Gunbarrel to any of the
current library locations is time consuming and inconvenient. Many patrons also wish to
minimize their carbon footprint. Some shared that they drive to surrounding cities to visit
libraries and couple their trips to those libraries to run errands and shop. There is
support and interest in Gunbarrel getting any type of library services. But many of the
residents who came to the feedback sessions said they would welcome a corner library
like what currently exists in north Boulder.
Expanding programs and services
The community places a high priority on access to library materials. Numerous requests
for more books, more e-books, and more availability of streaming and downloadable
resources were made via survey responses and during the community engagement
activities and meetings. There was also significant interest expressed in expanding the
BLDG 61 Makerspace, incorporating a makerspace in the future full-service North
Boulder Branch Library, and expanding maker programs to the other branch libraries.
Lastly, some in the community strongly advocated for expanding the capacity of the
Canyon Theater in the north building of the Main Library to provide an affordable
performance space for local groups.
Safety concerns
Through the survey and during the community check-in meetings, some patrons
expressed that they do not consistently feel safe when they visit the Main Library. These
patrons often cited discomfort with sharing space with other members of the community
that they perceive as homeless or transient, or witnessing other patrons exhibiting
3 2015-2040 Projections - Boulder Valley Comprehensive Plan. https://www-
static.bouldercolorado.gov/docs/BVCP_Projections_Summary_Formatted_082815 -1-
201508281637.pdf?_ga=2.182312111.9257700.1509980835 -1720780512.1489675207
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behavior or accessing electronic information that they find objectionable. The staff and
Library Commission acknowledge that there are several opportunities to address these
concerns including:
• providing educational information about the public library as a place where all are
welcome if they observe the rules of conduct.
• evaluating the configuration and management of public spaces in the library
where people typically gather and implementing improvements that effectively
support the equitable use of space, and
• improving the security officer presence and their skills with consistent
enforcement and de-escalation.
Sustainability
The capital and ongoing operating funding support necessary to fulfill the community’s
vision for the library system is not insubstantial. While firm estimates have not yet been
obtained, fair preliminary estimates for new buildings, more programs and services for
the underserved, and improved security of library facilities will require an increase
somewhere between $1.5 to $2 million annually in ongoing operating funding, and
require approximately $6 to $12 million in one-time capital funding. This includes $5
million to build a full-service North Boulder Branch Library which will be funded by the
Capital Improvement Tax approved by the voters in Nov. 7, 2017. All measures of BPL’s
business have grown significantly over the past four years: increased visitors, increased
program attendance, increased materials circulation, and increased new cardholders. It
has been accomplished with fewer staff and minimal new budget dollars. As a result, the
libraries are operating with some deficiencies. Opening the George Reynolds and
Meadows Branch libraries an additional day per week without more staff is one
significant example. Staff for BLDG 61 and a programs, events, and outreach work group
was done through a reallocation of current positions from other divisions in the library.
At present, BPL has over 132,731 total cardholders. The City of Boulder population is
approximately 108,000. Staff’s analysis shows that while most households in Boulder
have BPL cardholders, nearly 40,000 of those cardholders live outside the Boulder city
limits, indicating that BPL is a regional hub. Many of these are assumed to be
commuters, university students, and patrons living in unincorporated Boulder County and
neighboring cities. Increasing funding for BPL as described above to address ongoing
operating budget shortfalls and to meet the goals identified by the community is a
moderate request, that would put its funding at an average level per user when compared
to other Colorado public libraries. Maintaining high quality library services and meeting
the current demands of the community necessitates investigating new funding options
that will ensure sustainability.
FUNDING SOURCES FOR OPERATING BUDGET AND CAPITAL NEEDS
BPL is currently supported through a combination of a 0.33 mill dedicated property tax
and City of Boulder Sales and Use tax. In 2018, it is expected that property taxes will
generate approximately $1.24 million to fund library operations. Sales and use tax will
generate approximately $6.94 million for library operations.
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Boulder Library Foundation
Additionally, BPL also receives annual grant support for programs and events from the
Boulder Library Foundation (BLF). The BLF is in its 43rd year of supporting the Boulder
Public Library, a testament to the hard work and dedication of the 13-member volunteer
board and many community members who believe in the value of their public library.
Over the past four years, the BLF has contributed nearly $1.2 million in funds to support
library programs and events. The BLF has committed to awarding the library up to
$250,000 in grant funding each year for the next three years, and shaped its fundraising
and investment strategies around meeting that goal.
General Fund and Library Fund
The Library Fund is a restricted fund that serves as a depository of BPL’s 0.33 mill
dedicated property tax, grant revenues, and gifts and contributions intended solely for
library use. Revenues generated in the Library Fund support approximately 16% of
BPL’s $8.26 million in operating expenditures, with the General Fund directly covering
the remaining 84%. The Library Fund’s estimated year-end 2017 balance is
approximately $350,000. Most of this balance is comprised of donor-restricted gifts and
contributions.
The Library Fund described above was established in 2016 following a voter approved
charter change. Prior to the charter change, BPL’s operating budget was funded from a
previous version of the Library Fund. This fund, while called out separately in name,
existed within the General Fund and allowed for the commingling of restricted and
unrestricted revenue sources, i.e. dedicated property taxes mixed with sales and use tax
transferred in from the General Fund. When the new Library Fund was established, the
balance that had accumulated over the years in the old Library Fund was set aside within
the General Fund to be used for future library needs. This reserved balance is $2.05
million.
Development Excise Taxes and Impact Fees
In the 1980s, the city began collecting Development Excise Taxes (DETs) from new
residential development to be used for “library facilities that are attributable to growth.”
Excise taxes are one-time revenues used to fund capital costs attributable to new
development and require voter approval. In 2009, the city shifted from DETs to Impact
Fees for BPL. Impact Fees are also one-time revenues from residential development used
to fund system improvements needed to accommodate growth or development. However,
these fees do not require voter approval and are instead based on a nexus study that
assesses the reasonable impact of proposed development on existing capital facilities. The
last study was conducted in 2015 and set fees “at a level no greater than necessary to
defray such impacts directly related to proposed development” relative to BPL’s current
capital stock and level of service. As such, impact fees may not be imposed to remedy
any existing deficiency.
The balance of DET and Impact Fees collected for the library reside in the city’s Capital
Development Fund and are available to apply to capital improvements, including
City Council Study Session Page 14 of 76
12
collection materials expansion, that are attributable to new growth. The community’s
request for new library facilities in north Boulder and Gunbarrel would address growth-
related needs and therefore would be eligible for at least partial funding from DET and
Impact Fee revenue. BPL’s current balance of DETs is $1.52 million and its balance of
Impact Fees is $989,000.
Blystadt-Laesar House proceeds
The library has $368,000 in proceeds from the sale of the Blystadt-Laeser House at 1117
Pine St. sitting in a restricted account within the General Fund. The house was purchased
in late 1986 to supplement the archival storage needs of the Carnegie Branch Library.
After the purchase, the house was determined to be inadequate for its intended use, and
when it was sold in 2002, the intention was to use sale proceeds to fund other archival
storage options such as digitization.
Facilities, Renovation, and Replacement Fund
BPL makes annual contributions, when feasible, to the Facilities, Renovation and
Replacement Fund (FR&R) based upon a combination of Public Works- Support
Service’s facility capital renovation and replacement projections, as well as savings for
future renovation projects envisioned by library staff. These contributions have been used
in the past to fund projects such as window replacement, floodproofing, roof repairs,
branch library renovations, etc. BPL’s current balance in the FR&R Fund is $373,000.
To meet the needs and priorities identified by the community and to address community
growth BPL will either need increased ongoing support from the city’s General Fund or
to pursue another form of governance and funding.
OPTIONS FOR FINANCIAL SUSTAINABILITY
The 2007 Library Master Plan recommended that the library consider restructuring its
governance and funding model to secure a higher level and more stable funding through
a regional model. A summary of the cities and counties where current BPL cardholders
reside is in Attachment B. The fact that one third of BPL cardholders reside outside of
Boulder city limits makes this an important consideration for council.
While there are several options for library governance and/or funding besides municipal
governance and funding, forming a library district or a regional library authority are the
two options that are feasible for BPL.
The Colorado Library Law “Quick Guide” Comparison of Library Districts and a
Regional Library Authority is in Attachment C.
Library districts are the most common form of governance and funding for libraries in
Colorado. A map of Colorado library jurisdictions is Attachment D. While Colorado
Library Law defines the regional library authority as an option for library governance
and funding, there are none in Colorado.
City Council Study Session Page 15 of 76
13
Library District
A library district is a local entity other than a county, municipality, township or school
district that is authorized by state law to establish and operate a public library as defined
by the National Center for Education Statistics. It has sufficient administrative and fiscal
autonomy to qualify as a separate government entity. While special districts such as fire
and water and sewer districts are grouped together and governed by title 32 under
Colorado law, libraries are a distinct form of district and governed in Colorado by title
24. Fiscal autonomy of libraries requires support from local taxation dedicated to
library purposes (e.g., a library tax). The residents within the boundaries of the district
must produce a majority vote in favor of being included in the district, and must approve
any new or increased library taxes within the district boundaries.
If a library district is formed to include the city limits, the city council would appoint a
library district board. If a library district’s boundaries would include areas outside of the
city limits, city council would likely also need to appoint at least one at-large member to
a governing board. This board would then function independently of the city
government, with primary responsibilities of hiring a library director, approving
expenditures and overseeing all district strategy and accountability for operational
efficiencies. The district would assume responsibilities for all administrative functions
(human resources, finance, facilities management, insurance, employee benefits and
retirement, etc.) or choose to contract with the city or other entities to provide these
services. All library employees would become employees of the district.
The City Council and Library Commission would consult the Boulder Valley
Comprehensive Plan and work with Boulder County commissioners to identify district
boundaries which would include areas of unincorporated Boulder County that do not
have adjacent areas with other entities providing municipal or district library services.
Regional Library Authority
A regional library authority is an entity created by an agreement between two or more
governmental units. These can be cities, counties, special districts and/or school
districts. This option requires voter approval to establish a combination of property and
sales tax to fund library operational and capital costs. The government entities involved
would either appoint a board of directors, or selected members of the City Council
might serve on the board of a regional library authority. Though Colorado State
legislation authorizing the formation of a regional library authority has existed for
several years (CRS 24-90-110, et. seq.) there are no such entities in Colorado now.
Regional library authority boundaries may include the Boulder city limits and some
other entity. Aside from Boulder Valley School District, there are few special districts
within Boulder County that would be appropriate with which to combine. The
Gunbarrel General Improvement District is one. This combination would include many
BPL users with property outside the city limits but it would by no means be
comprehensive.
City Council Study Session Page 16 of 76
14
ANALYSIS
At its most elementary level, the analysis of the options described above comes down to
two simple questions:
• Can the City of Boulder operate the library and meet master plan goals with the
current financial structure/resources?
• Should BPL users with property outside the city limits be asked to contribute to
library funding on a more equitable basis?
Nearly 1,800 library patrons and community members responded to the recent
community survey4. Seventy-two percent (72%) of respondents indicated they would
“support” or “strongly support” increasing their taxes to pay for library services. This is
something that needs further investigation.
Most public libraries measure funding and count metrics on a per capita basis. In
comparison to other public libraries in Colorado, BPL ranks in the upper third for per
capita funding (Attachment E). However, looking at a library’s funding and
performance on a per capita basis does not really show the actual success or busyness of a
library. In BPL’s case, these data points belie the fact that Boulder is a regional hub. No
library system of BPL’s size has a similar, disproportionate number of cardholders in
relation to population. Most Colorado libraries with even remotely similar user bases are
mountain resort towns (Attachment F). If library funding and metrics are analyzed per
registered user (cardholder), BPL drops down into the lower third in funding for
Colorado.
To go one step further in the analysis of Attachment E, if library funding is measured
based upon the number of people that use the system, instead of the legal service area
population, BPL would need an increased funding level of more than 33% or
approximately $4 million per year to achieve funding levels equivalent to that of the
Denver Public Library or to meet the average funding levels for medium or large libraries
on Colorado's Front Range.
Municipal governance and funding
Some advantages of municipal funding:
• A diversity of funding sources for the city’s General Fund.
• Some internal services such as information technology, human resources, finance,
etc. can be provided by the city at a lower cost than they likely would be available
on a contract basis.
Challenges of municipal funding:
• Competition of public services for priority and budget resources.
4 Community Engagement and Feedback Report – Boulder Public Library. https://boulderlibrary.org/wp-
content/uploads/2017/04/2017-Community-Engagement-Survey-and-Focus-Group-Report-Library-Master-
Plan.pdf
City Council Study Session Page 17 of 76
15
Library district governance and funding
Some advantages of forming a library district include:
• Funding is secured directly from dedicated tax revenues rather than
competing with other city or county departments.
• City of Boulder general fund contribution of approximately $7 million
annually generated from sales tax revenue would no longer need to be used
to support the library.
• The 0.0333 property tax mill levy for Boulder property owners to fund
libraries may be rescinded. More investigation is required to determine this.
• A single purpose district can enhance taxpayer accountability and
organizational focus.
• Debt can be issued to fund capital projects, but funding received is not solely
restricted to capital costs.
• Unspent dollars can be retained for future years.
Some challenges of forming a library district include:
• Introduction of a new tax that requires voter approval.
• State budget limits and constitutional limits, such as TABOR (Taxpayer Bill of
Rights) and the Gallagher Amendment apply to library districts.
• The effect of the Gallagher Amendment means a disproportionate amount of
property tax is placed on commercial property.
• The transition year to a district is difficult, requiring a large commitment from the
board and staff.
• Funding is restricted to property taxes.
• Property taxes are subject to periodic property devaluations that could result in
service reductions. In the event of a downturn in the assessed property values, there
is usually a one or two-year delay in property tax collections to plan how to address
any decreased revenue.
Regional library authority governance and funding
Since a regional library authority does not currently exist in Colorado, a complete
understanding of the disadvantages is not known.
Some advantages of a regional library authority include:
• Funding received is not solely restricted to capital costs.
• Funding is secured directly from dedicated tax revenues rather than competing with
other city or county departments.
• Both sales and property taxes are funding sources.
• Debt can be issued to fund capital projects.
• Each library system may continue to be part of its city government.
City Council Study Session Page 18 of 76
16
Some disadvantages of a regional library authority include:
Since each of the governmental entities involved remain autonomous, establishing
clear operational agreements, roles and creating a board of directors can be complex.
Each governmental entity involved is responsible for generating the funds for its
contribution to support library facilities and services within the regional library
authority.
NEXT STEPS
Staff will complete the 2018 Boulder Public Library Master Plan and present it for City
Council consideration and adoption in March 2018.
ATTACHMENTS
A. Demographic analysis summary of Boulder households with BPL cardholders
B. BPL cardholders by area of residence
C. The Colorado Library Law “Quick Guide” Comparison of Library Districts and a
Regional Library Authority
D. Map of Colorado library jurisdictions
E. Funding level comparison of some Colorado public libraries
F. Library accounts and visits comparison
City Council Study Session Page 19 of 76
Service Area Population Households with BPL
cardholders
Average drive time to
nearest BPL location
Households with
or likely to have
children
Average household
income
Households with
Spanish speaking
members
Dwelling type Length of residence
Main Library (Includes
the Hill & CU campus)47,001 53.09%
0-5 minutes: 55%
5-10 minutes: 43%
10+ minutes: 2%
18.20%
Under $50k: 42.9%
$50-100K: 21.6%
$100-150K: 13.2%
$150K +: 14.7%
7.02%55% Single Unit
44% Apartment
0-4 years: 53%
5-9 years: 14%
10-19 years: 17%
20-29 years: 10%
30-49 years: 6%
Meadows Branch
Library
(Includes many of the CU
dorms)
25,175 46.17%
0-5 minutes: 92%
5-10 minutes: 7%
10+ minutes: 1%
20.30%
Under $50k: 39.2%
$50-100K: 25.6%
$100-150K: 14.5%
$150K +: 14.7%
6.97%55% Single Unit
43% Apartment
0-4 years: 46%
5-9 years: 13%
10-19 years: 17%
20-29 years: 13%
30-49 years: 9%
George Reynolds
Branch Library 18,687 63.53%
0-5 minutes: 90%
5-10 minutes: 10%
10+ minutes: 0%
24.70%
Under $50k: 22.3%
$50-100K: 27.2%
$100-150K: 19.5%
$150K +: 19.8%
3.70%86% Single Unit
13% Apartment
0-4 years: 44%
5-9 years: 16%
10-19 years: 21%
20-29 years: 13%
30-49 years: 6%
NoBo Corner Library 16,674 54.02%
0-5 minutes: 87%
5-10 minutes: 13%
10+ minutes 0%
32.20%
Under $50k: 27%
$50-100K: 23%
$100-150K: 18.5%
$150K +: 22.6%
11.66%77% Single Unit
23% Apartment
0-4 years: 49%
5-9 years: 15%
10-19 yrs: 20%
20-29 yrs: 14%
30-49 yrs: 2%
Gunbarrel 16,328 31.48%
0-5 minutes: 0%
5-10 minutes: 16.6%
10-15 minutes: 49.2%
15+ minutes: 34.2%
28.20%
Under $50k: 25.3%
$50-100K: 27.2%
$100-150K: 19.6%
$150K +: 19.4%
6.44%74% Single Unit
25% Apartment
0-4 years: 60%
5-9 years: 17%
10-19 years: 16%
20-29 years: 6%
30-49 years: 2%
Northeast Boulder
(Iris/Palo Park/ Valmont
neighborhoods)
7,717 49.51%
0-5 minutes: 0%
5-10 minutes: 85%
10+ minutes: 5%
28.40%
Under $50k: 43.9%
$50-100K: 23.9%
$100-150K: 14.2%
$150K +: 9.8%
13.10%44% Single Unit
54% Apartment
0-4 years: 53%
5-9 years: 18%
10-19 years: 18%
20-29 years: 9%
30-49 years: 2%
Boulder
(7 mile radius around the
Main Library includes
some parts of Louisville
and Superior)
132,857 49.23%
0-5 minutes: 21%
5-10 minutes: 61%
10+ minutes: 18%
22.80%
Under $50k: 34%
$50-100K: 24.5%
$100-150K: 16.3%
$150K +: 25.3%
6.74%67% Single Unit
32% Apartment
0-4 years: 49%
5-9 years: 15%
10-19 years: 19%
20-29 years: 12%
30-49 years: 6%
Demographic analysis summary of Boulder households with BPL cardholders
Data generated by service area boundaries from Gale Analytics on Demand in 2016
Attachment A
City Council Study Session Page 20 of 76
Attachment B
Area Cardholders % of Total
Boulder 92,176 69.45%
Boulder County (no city)ⱡ4,398 3.31%
Longmont*5,646 4.25%
Lafayette*3,601 2.71%
Louisville*2,148 1.62%
Broomfield*1,538 1.16%
Superior 1,860 1.40%
Denver 1,909 1.44%
Jefferson County 1,602 1.21%
Nederland 1,458 1.10%
Niwot 793 0.60%
Erie 896 0.68%
Lyons 774 0.58%
Westminster 844 0.64%
Adams County 661 0.50%
Weld County 364 0.27%
Aurora 264 0.20%
Arapahoe County 343 0.26%
Larimer County 69 0.05%
Ft. Collins 25 0.02%
Loveland 18 0.01%
Berthoud 6 0.00%
Other 11338 8.54%
TOTAL 132731 100.00%
*Areas served by other Flatirons Library Consortium libraries.
BPL Cardholders by Area of Residence
Data generated from BPL Patron Database 11/8/2017
ⱡ 75% are cardholders with addresses in unincorporated Boulder County (primarily north
Boulder and Gunbarrel). 25% are cardholders with addresses in small mountain towns
(i.e. Jamestown, Eldorado Springs, etc.)
City Council Study Session Page 21 of 76
Colorado State Library
201 East Colfax Ave., Room 309
Denver, CO 80203
Phone: 303-866-6900
Fax: 303-866-6940
Web: www.ColoradoStateLibrary.org
Colorado State Library - 7/15/2010
Web Address: www.ColoradoStateLibrary.org
Colorado Library Law – The Quick Guide
Comparison of Library Districts and a Regional Library Authority
CRS 24-90-107,108,109,112,113.3, 114
CRS 24-90-110.7
Library District (LD)
CRS 24-90-107,108,109, 112,
113.3, 114
Regional Library Authority
(RLA)
CRS 24-90-110.7
Both
Definition:
Library District is a governmental unit
created by one or more cities or counties.
Library District is a political subdivision of
the state, like special districts, cities,
towns, and counties.
Regional Library Authority is a
governmental entity created by an
agreement between two or more
governmental units. These could be cities,
counties, and/or library districts.
Participants agree to finance, operate,
and maintain publicly-supported library
services for the agreed-upon regional
area.
Method of Establishment:
Library Districts are formed by a
resolution of ordinance from a city or a
county OR by a petition.
Specific requirements and procedures are
found in CRS 24-90-107
Any new or increased tax requires voter
approval.
Regional Library Authority (RLA)
Can’t be formed unless each
governmental unit passes a resolution
or ordinance AND has a contract with
the other units.
Resolution or ordinance must describe
legal service area (LSA) of the
authority, the governance, and state
that the electors shall approve sales
and/or use tax or any ad valorem tax
before taxes can be levied.
Boundary of the RLA may not be less
than the entire area of any municipality
and any other unit forming the RLA,
except that it may be less than the
entire area of a county.
Any new or increased tax requires
voter approval.
Both Library District and
Regional Library Authority
must hold at least one
public hearing addressing
the purposes, powers,
rights, obligations, and
responsibilities of each unit
which is forming the district
or library authority. The
Legal Service Area (LSA)
must be identified and
specify the mill levy or other
type and/or amount of
funding.
Any new or increased tax
requires voter approval.
Contract or written agreement:
CRS 24-90-109 (p)
A contract or inter-governmental
agreement (IGA) may be made after the
establishment of the district and after
appointment of trustees.
Contract for library services is between
each participating governmental unit and
the library district board.
CRS 24-90-110.7 (2)
Contract must be signed before the
establishment of the Regional Library
Authority (RLA).
Effected within 90 days.
Between each participating
governmental unit.
Must describe boundaries of the RLA.
Must address governance of RLA.
Attachment C
City Council Study Session Page 22 of 76
Comparison of Library Districts and a Regional Library Authority
The Quick Guide May 2010
Page 2 of 4
Library District (LD)
CRS 24-90-107,108,109, 112,
113.3, 114
Regional Library Authority
(RLA)
CRS 24-90-110.7
Both
Example: between the library district and
a school board OR the library district and
a municipality, OR the library district and
the county that will pay for extending
services to non-district residents.
CRS 24-90-113.3
A governmental unit (municipality, county,
school district) may contract to receive
library services from an existing library.
Contract must specify:
geographic area covered by contract
amount of money paid to library
length of contract
any other necessary information.
Must address financial obligations for
each unit in the RLA.
Must designate a financial officer.
Electors must approve sales or use
taxes, or ad valorem taxes.
May modify Legal Service Area (LSA)
boundaries after establishment.
How property or assets will be
disbursed; divided, or distributed.
Terms for contract continuation or
termination agreements;
Contracts can’t be terminated if there
are financial obligations unless escrow
payment arrangements are made.
Expected sources of revenue and any
other requirements.
Board of Trustees:
CRS 24-90-108
Board size must be 5-7.
Must be chosen from residents in the
Legal Service Area. (LSA)
initial board is appointed by
establishing governmental unit(s)
adopt bylaws, rules, and regulations
for guidance
vacancies to be filled as soon as
possible
bylaws must define ‘good cause’ for
removal of trustee
officer designations and how they’re
elected/appointed
meeting conduct rules
how to amend bylaws
length and term numbers of board
members
file bylaws with legislative body of
each governmental unit.
CRS 24-90-110.7 (2)(c)
Board of Directors – no size specified.
Contract with establishing governmental
units must specify:
number of directors
how appointed
terms of office
compensation (if any)*
how to fill vacancies
officers—how selected and duties
voting requirements for board action
a majority is a quorum, and is required
for actions.
* board members cannot be paid to serve
Powers and Duties:
CRS 24-90-10
Have supervision and care for library
property, rooms, and buildings.
Employ a librarian, and other staff as
recommended by librarian.
Prescribe salary and duties.
Submit budget, and certify the sums
necessary to operate in the coming
year.
CRS 24-90-110.7(3)
Acquire, construct, finance, operate, or
maintain public library services located
in the boundaries of the authority.
Make and enter into contracts.
Employ agents and employees.
Acquire, hold, lease, sell, or dispose of
real or personal property, commodity,
or service.
Attachment C
City Council Study Session Page 23 of 76
Comparison of Library Districts and a Regional Library Authority
The Quick Guide May 2010
Page 3 of 4
Library District (LD)
CRS 24-90-107,108,109, 112,
113.3, 114
Regional Library Authority
(RLA)
CRS 24-90-110.7
Both
Adopt a budget and make
appropriations.
Accept gifts, money, and property.
Hold and acquire land by gift, lease, or
purchase.
Lease, purchase, or build as needed.
Sell, assign, transfer, or convey library
property no longer needed.
Make a finding that the property is no
longer necessary. If property is going
to another governmental agency, a
finding isn’t needed.
Borrow funds with a short-term loan –
no longer than six months.
Authorize bonding of financial persons.
Conduct an annual audit.
Authorize purchase of library materials
end equipment.
Hold title to property given to library
Have authority to enter into contracts
Send the Public Library Annual Report
to the State Library.
May allow nonresidents to use the
library materials, equipment and
services.
Serve as a repository for school district
collective bargaining agreements.
Adopt, by resolution, rules respecting
the exercise of its powers and the
carrying out of its purposes.
Funding
CRS 24-90-107 (3) (a) (V)
Mill levy or other type/amount of funding
specified in the resolution or ordinance by
the establishing bodies OR in the
establishing petition.
CRS 24-90-112
CRS 24-90-112.5
May raise mill levy or issue bonds if
electors approve.
CRS 24-90-110.7(2)(f) and
CRS 24-90-110.7(3)
If the RLA levies taxes the contract must
state:
that the RLA adopt a resolution about
levying taxes or fees;
be fair with, and not impose undue
burden on anyone;
the taxes will conform other CRS
requirements
a designated financial officer to
coordinate collection
this person shall identify businesses
eligible to collect sales and use taxes.
Taxation powers:
Sales or use tax, or both
Ad valorem tax*
*A percentage of value tax. Sales,
income, and property taxes are three of
the more popular ad valorem taxes
All funding levies must be
approved by electors in the
legal service area of
the Library District or
Regional Library Authority
(RLA).
Attachment C
City Council Study Session Page 24 of 76
Comparison of Library Districts and a Regional Library Authority
The Quick Guide May 2010
Page 4 of 4
Library District (LD)
CRS 24-90-107,108,109, 112,
113.3, 114
Regional Library Authority
(RLA)
CRS 24-90-110.7
Both
State Constitution - Article X (TABOR)
Approval of any tax levy must conform to
the Taxpayer Bill of Rights (TABOR)
requirements.
devised by government.
State Constitution - Article X (TABOR)
Approval of any tax levy must conform to
the Taxpayer Bill of Rights (TABOR)
requirements.
State Constitution -
Article X (TABOR)
Approval of any tax levy
must conform to the
Taxpayer Bill of Rights
(TABOR) requirements.
Abolishment
CRS 24-90-114
Library District may be abolished only by
a vote of the registered electors in the
district. Board of Trustees will dispose of
the materials and equipment.
CRS 24-90-110.7 (2)(e)
The contract between the governmental
units shall specify the length of the
contract or method of termination of the
Regional Library Authority.
Note: Further specific Regional Library Authority powers, restrictions, and requirements are found in the full CRS
24-90-110.7 text: http://www.cde.state.co.us/cdelib/librarylaw/part1#24-90-110.7
See also the Quick Guide for the Regional Library Authority at
www.ColoradoStateLibrary.org/LibraryLaw/download/QuickGuideRLA.pdf
* This is a rough, non-legal summary of the statutes. Consult with your respective city, county, or district lawyers for
legal advice on, and implications of, Colorado Library Law, or call the Colorado State Library for additional
information.
For further Public Library Information: www.ColoradoStateLibrary.org/LibraryDevelopment/PublicLibraries
Colorado State Library, 201 E. Colfax Ave., Room 309, Denver, CO 80203
voice: 303-866-6900, fax: 303-866-6940
Attachment C
City Council Study Session Page 25 of 76
Wyo mi n g
Utah
Ok l ah o maNewMexico
Neb r ask a
Kan s as
Arizona
YumaWeldWashington
Teller
Summit
Sedgwick
San Miguel
San Juan Saguache
Routt
Rio Grande
Rio Blanco
Pueblo
Prowers
Pitkin
Phillips
Park
Ouray
Otero
Morgan
Montrose
Montezuma
Moffat
Mineral
Mesa
Logan
Lincoln
Las Animas
Larimer
La Plata
Lake
Kit Carson
Kiowa
Jefferson
Jackson
Huerfano
Hinsdale
Gunnison
Grand
Gilpin
Garfield
Fremont
El Paso
Elbert
Eagle Douglas
Dolores
Denver
Delta
Custer
Crowley
CostillaConejos
Clear Creek
Cheyenne
Chaffee
Broomfield
Boulder
Bent
BacaArchuleta
Arapahoe
Alamosa
Adams
All Library Jurisdictions Statewide
Prepared by CIVICTechnologies. May 2011.
N
Colorado State Library
Library Districts
County Libraries
Municipal Libraries
Multi-Jurisdictional Libraries
County Boundaries
State Border
Attachment D
City Council Study Session Page 26 of 76
Library System Governance
Operating
Revenue
Operating
Expenditures
Expenditures
per Capita
Expenditures
per Registered
Borrowers
Difference between
Expenditures per Capita and
per Registered Borrower
Eagle Valley Library District district $4,481,284 $4,120,536 $98.53 $185.15 $86.92
High Plains Library District (Weld County)district $27,736,107 $16,845,943 $67.03 $144.29 $77.26
Rangeview Library District (Anythink / Adams County)district $14,041,957 $13,625,528 $37.90 $118.16 $80.26
Arapahoe Library District*district $29,000,000 $29,000,000 $90.81 $105.59 $19.64
Douglas County Libraries district $22,087,167 $21,034,336 $68.73 $98.55 $29.82
Pikes Peak Library District district $29,421,973 $25,745,063 $42.38 $95.04 $52.66
Denver Public Library city $44,001,954 $42,373,939 $65.30 $85.71 $20.41
Pueblo City-County Library District district $9,829,572 $9,658,363 $59.89 $79.95 $20.86
Mesa County Public Library District district $6,771,855 $5,608,851 $37.95 $70.89 $32.94
Loveland Public Library city $3,158,753 $3,158,753 $44.35 $63.22 $18.87
Jefferson County Library district $24,960,841 $23,977,594 $43.42 $62.22 $18.80
Boulder Public Library city $7,690,028 $8,223,136 $80.12 $58.56 ($25.36)
Louisville Public Library city $1,453,437 $1,510,988 $46.78 $56.91 $10.13
Poudre River Public Library District [Fort Collins]district $9,280,762 $8,473,850 $45.49 $52.81 $7.32
Broomfield/Eisenhower Public Library city $2,359,427 $2,328,907 $39.17 $43.17 $4.00
Longmont Public Library city $3,384,619 $3,256,590 $36.09 $35.92 ($0.17)
TOTAL $239,659,736 $218,942,377 $903.94 $1,356.15 $454.36
AVERAGE $14,097,631.53 $12,878,963 $53.17 $79.77 $26.73
Boulder Public Library (BPL) would need an operating budget of $11.4M to reach the average expenditure per registerd borrower. Since overhead costs such as Human Resources, IT,
Finance, Facilities, etc. are not billed directly to BPL, subtract 12% for overhead/economies of scale. The adjusted budget required for BPL to reach the average expenditure per user is
$10.03M.
Data generated from Library Research Service 2015 Colorado Public Library Statistics
Funding Level Comparison of Some Colorado Public Libraries
https://www.lrs.org/
2015 Total Revenue and Expenditures
*Voters passed a significant mill levy increase for Arapahoe Library District in 2016. Estimates provided by Arapahoe Library District administration.
Attachment E
City Council Study Session Page 27 of 76
Library System
Legal Service
Area
Population
Library Accounts as a
% of Population
Library In-
Person Visits
per Capita
Nucla Public Library 710 351%7.74
Vail Public Library 5,483 302%19.83
La Veta Public Library District 7,879 300%30.66
San Miguel Library District # 1/Telluride 7,879 233%41.81
Basalt Regional Library District 777 214%12.66
Rio Grande County Library District 11,543 198%3.9
Rocky Ford Public Library 4,000 183%14.14
Ridgway Public Library District 979 155%22.26
Hinsdale Library District/Lake City 374 149%0.13
Wray Public Library 2,367 146%8.37
Canon City Public Library 16,679 146%8.12
Cortez Public Library 9,007 144%18.87
Spanish Peaks Library District 6,711 138%13.22
Ouray Library District 1,033 133%8.56
Boulder Public Library 108,000 131%9.16
Nederland Community Library District 1,534 113%15.08
Longmont Public Library 92,858 93%6.48
Louisville Public Library 20,801 89%6.83
Estes Valley Public Library District Estes Park 6,362 89%13.53
Pueblo City-County Library District 163,591 84%8.94
Lafayette Public Library 28,261 81%5.37
Poudre River Public Library District Fort Collins 164,207 80%5.21
Denver Public Library 682,545 69%6.24
Loveland Public Library 76,897 66%5.33
Jefferson County Public Library 565,524 64%4.72
Douglas County Libraries 322,387 64%6
High Plains Library District (Weld County)285,174 45%5.76
Pikes Peak Library District Colorado Springs 465,101 43%5.44
Library Accounts and Visits Comparison
2015
Data generated from Library Research Service 2015 Colorado Public Library Statistics
https://www.lrs.org/public/data/csv/id/4008631/
Attachment F
City Council Study Session Page 28 of 76
C I T Y C OU N C I L AGE N D A I T E M C OVE R S H E E T
ME E T I N G D AT E :
Nov ember 28, 2017
AG E N D A T I T L E
7:30-9 PM C limate C ommitment
P RI MARY STAF F C O N TAC T
Kendra Tupper, C hief Sustainability Officer
Heather Bailey, Executive Director of Energy Strategy and Electric Utility Development
RE Q U E ST E D AC T I O N OR MOT I ON L AN GU AG E
General Direction from Council
AT TAC H ME N T S:
Description
Memo and Attachments
City Council Study Session Page 29 of 76
STUDY SESSION MEMORANDUM
TO: Mayor and Members of City Council
FROM: Jane S. Brautigam, City Manager
Heather Bailey, Executive Director of Energy Strategy and Electric Utility
Development
Jim Robertson, Executive Director of Planning, Housing and
Sustainability
Kendra Tupper, Chief Sustainability Officer
Bob Harberg, Principal Engineer - Utilities
Jonathan Koehn, Regional Sustainability Coordinator
Yael Gichon, Energy Strategist
Matt Lehrman, Energy Strategy Coordinator
Brett KenCairn, Senior Environmental Planner
Sarah Huntley, Engagement Manager
Ben Irwin, Deputy Director of Communications
Alexis Bullen, Communications Specialist
Emily Sandoval, Communications Specialist
DATE: Nov. 28, 2017
SUBJECT: Study Session for Nov. 28, 2017
Climate Commitment
EXECUTIVE SUMMARY
It is now widely acknowledged that climate change is underway, with impacts increasing
both locally and globally. Recognizing this, Boulder has been a leader in coordinated
global action to restore climate stability. At the same time, the city and community have
sought strategies to reduce our climate impacts that simultaneously enhance our
community’s resilience to climate change and support a vital and equitable economy.
The results of the November 2017 election advance the continued exploration of one of
the centerpiece strategies to address climate change—operation of a municipal electric
utility. This funding will enable staff to complete the steps necessary to quantify the cost
of acquiring existing Xcel Energy electric system assets, construct the separation plan,
negotiate a power supply, and verify whether the charter metrics can be met so that the
City Council Study Session Page 30 of 76
council and community can make a more informed decision in a final vote on operating a
municipal utility. The city is now in a strong position to follow the path laid out by the
recent decision at the Public Utilities Commission to pursue the operation of a local
electric utility.
The purpose of this study session is to provide the background, context, challenges and
opportunities that exist in meeting the city’s energy and climate goals, in preparation for
a more in-depth study session on this topic in April of 2018. This memo highlights the
work that has led to where the city is today – the municipalization process, the many non-
municipalization city-led energy programs and pilots and the significant progress that has
been made towards community objectives through the city’s existing Climate
Commitment work. This memo details some of the limitations and barriers that exist in
state-level policy and provides information on parallel paths that have been pursued and
will likely continue or expand regardless of municipalization, as the city needs to keep all
options open to achieve its goals. Lastly, the memo serves to inform council of the next
steps in the municipalization process following the outcome of the November 2017
election.
This memo is organized in the following way:
• Key issues
• Background: Climate Commitment and Energy Future goals, review of current
climate and energy efforts, and municipalization
• Gap Analysis: Discussion of the gap the city will have in meeting climate and
energy goals without municipalization
• Analysis: Parallel paths to advance climate and energy goals
• Next steps
KEY ISSUES IDENTIFIED
The Boulder community is united in the belief that we need to address climate change.
Recent surveys indicate that 94 percent of the community believe climate change is
happening and 90 percent report that they are taking steps to reduce their climate impact.
The city adopted specific energy-related goals under the Climate Commitment in 2016.
City Council Study Session Page 31 of 76
While the Climate Commitment goals are the quantifiable targets, the Energy Future
goals, adopted in 2011, were intended to ensure that the way those goals are met is
consistent with city values and priorities. The six Energy Future goals are:
1. Ensure a stable, safe and reliable energy supply
2. Ensure competitive rates, balancing short-term and long-term interests
3. Significantly reduce carbon emissions and pollutants
4. Provide energy customers with a greater say about their energy supply
5. Promote local economic vitality
6. Promote social and environmental justice
Both the Climate Commitment energy goals (what the city is trying to achieve) and the
Energy Future goals (how the city wants to achieve them) remain a priority for Boulder.
From its inception, the aim of the municipalization effort has been to enable the
community to meet these collective goals. As the analyses provided later in this
document demonstrate, having local control of the city’s electricity system is the most
aggressive and only path identified, at this time, that allows the community to control the
achievement of its climate and energy goals. A municipal utility can provide a wider
variety of programs, incentives and financing mechanisms that enable residents and
businesses to replace fossil-fuel dependent systems and appliances with renewables-
based alternatives.
In Colorado, which has a regulated electricity market, there are limitations to what
individual customers and communities can do related to electricity supply if they live
within the jurisdiction of a state-regulated utility. Without a municipal electric utility—
which is not regulated by the state’s Public Utilities Commission—or changes to state
law, communities cannot choose to purchase power from clean energy suppliers, solar
power or other local generation. Local generation like solar and battery storage cannot be
shared across property lines, and an individual property cannot generate more than 120
percent of the energy consumed on that property. These are examples of barriers the city
faces today in meeting its goals under the current Colorado statutory and regulatory
structure.
Attachment A, “Energy Future Goals Matrix,” first introduced in 2013, serves to
unpack the Energy Future Goals and describe ways each is impacted or constrained by
state/regulatory control. This matrix:
• includes an overview of progressive technologies and practices,
• indicates which Energy Future goals would be addressed, and
• describes whether each goal is technically and legally possible under the Status
Quo with Xcel Energy, would require a Municipal Utility, or would require a
change in state-level policy.
This memo includes a section on parallel paths or alternative strategies to make progress
towards the city’s goals. The intention is to present a wide range of levers that can be
City Council Study Session Page 32 of 76
pulled to move the city forward. Not all of these efforts are fully staffed and funded
within existing work plans and budgets. It is important to note, that if council directs the
pursuit of certain strategies, staff will have to do an analysis of tradeoffs with budget and
staff time to complete these with existing resources. This analysis could be presented to
council in April 2018.
Following the November 2017 vote, the city will proceed with its path to municipalize by
taking the necessary steps to verify the costs and assumptions associated with acquiring
the electric distribution system. Once verified, council and the community will have an
opportunity to decide if it is still the right path forward for Boulder. The key near-term
issues, which are outlined further in this memo are:
• Finalizing agreements with Xcel to meet the PUC final order1
• Completing the major milestone activities that will determine the actual cost of
municipalization, outlined in Attachment B, “Municipalization Work Plan.”
• Negotiating power supply agreements and developing future energy services to
achieve the city’s Climate Commitment and Energy Future goals.
Questions for Council
1. Does council have any questions about the next steps and milestones related to
municipalization?
2. Does the proposed workplan provide the information council will need to
determine the viability of municipalization once the tasks are complete?
3. Staff plans to return to council in April 2018 with a brief update of progress on
the city’s energy-related2 Climate Commitment goals, a discussion of city’s
policy on Renewable Energy Credits (RECs), and a brief update on
municipalization. Is there anything else that council would like to see covered at
this study session?
4. Are there any strategies in the parallel path section of this memo that council
would like prioritized? If so, staff can further explore and return in April 2018
with additional information on budget and staff implications required to
implement.
BACKGROUND
The Boulder community has a long history of both recognizing and acting in response to
climate change, leading to the adoption of the Energy Future goals in 2011 and the
Climate Commitment goals in 2016. Attachment C, “Background,” provides the
1 The agreements ordered by the PUC are 1) an agreement with Xcel that will provide Xcel with property
rights necessary to serve its customers after the city has begun to operate its electric utility 2) a revised list
of assets outside substations that includes any real property the city will seek to acquire, as well as a revised
list of poles and 3) an agreement (or agreements) with Xcel regarding how the city will pay Xcel for the
work it will do to construct new facilities or reconfigure existing facilities it will continue to own .
2 A study session to review all four areas of focus within the larger climate commitment is being scheduled
for Q4 of 2018.
City Council Study Session Page 33 of 76
context and history for these goals, as well as a discussion of how climate change may be
accelerating and how this impacts long-term climate work for the city.
Boulder’s 80 percent emissions reduction goal was formalized in December 2016 when
the City Council voted unanimously to approve the community-wide Climate
Commitment. Based on the 2016 GHG Inventory (currently being finalized for release to
council in an Information Packet in early 2018), the city has achieved a 13 percent
emissions reduction based on a 2005 baseline.3
The Climate Commitment
document, developed over three
years with the direct involvement
of over 2,000 community
members, outlines four broad
areas of action:
As part of the implementation strategy presented by staff in 2016, a staged approach was
proposed to focus the city and community’s available resources. In parallel with these
efforts, city staff is developing strategies for integrating equity, social justice and
inclusivity into all aspects of these efforts. While this memo focuses on energy system
change, a more comprehensive discussion of the climate strategy will occur at a study
session in Q4 of 2018.
3 The Kyoto protocol goal was based on a 1990 baseline. In 2015, the city changed its baseline to 2005 to
be aligned with both the State of Colorado and a growing number of cities that have chosen this baseline
based on more accurate data availability and standardization.
1 ENERGY: Transition from fossil fuels to
renewable energy
2 ECOSYSTEMS: Improve the ability to
sequester carbon/stabilize climate change impacts
3 RESOURCES: Transition to a resource-
conserving economic system
4 EQUITY: Ensuring a just and equitable transition
to a low carbon economy and society
City Council Study Session Page 34 of 76
Energy-Related Climate Action Goals
As part of the Climate Commitment, a set of energy related goals was established. Table
1 shows a summary of major targets. The full set can be found in Attachment D,
“Climate-related Energy Goals.”
Table 1: Energy Related Goals
Action Metric 2020 2030 2050
Emissions Reduction GHG 15% 50% 80%
% electricity from renewables % of electricity 40% 100% 100%
Local Renewable Energy Megawatt (MW) 50MW 100MW 175MW
Reduction in Building Emissions % below 2005 25% 30% 75%
Vehicle Miles Traveled (VMT) Millions of miles 2.32 1.95 1.59
Electric & alternative vehicles % light duty vehicles 15% 45% 75%
Review of Current Climate and Energy Efforts
Although the city dedicated staff and resources to actively pursue municipalization, other
climate and energy efforts have not been stalled or set aside. Since the decision to explore
municipalization in 2011, the city has added three major programs/policies4, made
significant updates to the energy codes, launched new work in local solar and electric
vehicles, and piloted several new initiatives. The memo prepared for the Dec. 6, 2016
council meeting outlined the extensive set of strategies and programs the city has already
initiated as part of its action plan to achieve climate and energy goals.
In 2018, two overarching efforts related to Climate Commitment are 1) exploring
alternative options to the Climate Action Plan (CAP) Tax, and 2) creating a five-year
action plan for the Climate Commitment. In 2018, staff will continue to implement and
improve the following core programs (Figure 1) and key pilots (Figure 2). Attachment
E, “Climate-related Energy Programs, Initiatives and Pilot Projects,” provide more
detail on these.
Figure 1: Core Climate and Energy Programs
4 The Building Performance Ordinance, the Universal Zero Waste Ordinance, and the Energy Offset
Requirement for marijuana facilities
City Council Study Session Page 35 of 76
Figure 2: Energy Pilot Projects
City Council Study Session Page 36 of 76
Municipalization Effort
While the city has been exploring municipalizing its electric system for a long time, the
most recent municipalization project formally began in 2010 as an effort to provide
Boulder residents, businesses and institutions with electricity that is increasingly clean,
reliable and competitively priced while allowing for more local decision-making and
control. After extensive analysis and community input, City Council directed staff in
2013 to move forward with activities to launch and operate a local electric utility,
including legal and regulatory actions and development and implementation of a detailed
transition plan to achieve the city’s goals.
Since 2011, the city has accomplished significant milestones related to the utility’s
creation and operation, including:
• In 2013, staff completed an extensive feasibility analysis demonstrating that a
locally owned utility could be formed while meeting the requirements that
Boulder voters placed in the City Charter related to rates, debt service coverage,
reliability, and renewable energy. The analysis was reviewed by an independent
third-party evaluator that affirmed its methodology and findings.
• From 2014 to the present, the city developed and began implementing a detailed
transition work plan that included exploring and negotiating power supply
options, obtaining proposals for the operation of the system, developing
engineering plans and specifications, forming working groups to recommend and
City Council Study Session Page 37 of 76
implement energy services to support the local community, developing a k ey
account program, and documenting electric utility policies and procedures for
customer service, operations, maintenance, design, construction and safety.
• In 2015, Boulder began the regulatory process at the PUC, filing an application
for the transfer of certain assets owned by the Xcel Energy to the city.
• In 2016, the city entered into a contract with the CU and the National
Renewable Energy Labs (NREL) as part of an innovative partnership for
energy resilience and renewable energy system design and development.
• In 2017, the PUC issued a ruling on the city’s application creating a path
forward to proceed with municipalization.
• In 2017, voters passed an extension and an increase in funding for
municipalization efforts as well as a requirement for a final community vote.
The 2017 PUC written order on the transfer of Xcel’s assets case created a clear path for
the city to proceed with municipalization. Based on the ruling, the city will continue
exploring the items necessary to determine whether to move forward with the creation of
the utility or take an off-ramp. This includes various technical, legal and regulatory
proceedings, which are highlighted in Table 2.
Table 2: Highlights of Upcoming Municipalization Activities
Activity Timeline
1) A 90-day filing at the PUC of agreements
with Xcel Due Dec. 13, 2017
2) Prepare for and proceed with condemnation
if necessary Q1 2018 through Q2 2019
3) Engineering design and bidding of the
separation work Q1 2018 through Q2 2019
4) Xcel OATT5 Load interconnection process Q4 2017 through Q1 2018
5) Power supply evaluation and negotiation Q4 2017 through Q1 2018
6) Implementation of the municipalization
transition work plan and other start-up
activities necessary to launch and operate an
electric utility
2018 through 2022
5 Open Access Transmission Tariff (OATT)
City Council Study Session Page 38 of 76
In 2019 or 2020, city staff will return to council for a go/no-go decision on proceeding
with municipalization after the condemnation value and separation construction bids have
been received. If council decides to move forward, the community will vote on whether
to proceed with municipalization. While city staff has included estimated costs in the
models for evaluating the financial viability of operating the electric utility, validating
these estimates with the actual costs will provide assurances that the utility remains
financially feasible and that it is prudent to invest significant capital resources in
constructing and acquiring the electric system.
Figure 3 summarizes the major highlights and milestones achieved and next steps in the
municipalization process. Attachment B, “Municipalization Work Plan,” provides
more details on key next steps and timing of the municipalization work plan going
forward.
Figure 3: Municipalization Timeline
GAP ANALYSIS: MEETING CLIMATE AND ENERGY GOALS
Many of the factors that shape Boulder’s energy future are beyond direct local control.
Global energy markets, federal and state legislation and technology advances create the
context within which communities like Boulder will need to plan and implement
strategies for a clean, reliable and affordable energy future. But Boulder’s ability to
influence the source of its energy supply within the current context is extremely limited.
City Council Study Session Page 39 of 76
In Colorado, a regulated electricity market state, customers have no choice (apart from
trying to influence state legislation and proceedings at the Public Utilities Commission)
about who delivers their power, how it is managed and how much it costs. The legislature
sets statewide policy and vision, and the PUC is the venue where policy is implemented.
Rules are set, programs are designed and Xcel proposals are evaluated to ensure
compliance with state law as well as for financial and environmental prudence. The city
has had some success in influencing state legislation and PUC proceedings, and efforts
will continue in both areas, in parallel with the municipalization effort.
It was the recognition of these constraints that led to the formation (in 2009) of many
community working groups with over 200 residents and business people to explore
alternatives to achieving deep emissions reduction. These efforts resulted in the
development of the Energy Smart and PACE (Partners for a Clean Environment)
programs, expansion of solar related programs, and the exploration of operating a
municipal utility to accelerate renewable energy availability.
While the various environmental sustainability programs that were developed during this
period have been highly successful and nationally recognized, it has also become clear
that achieving both deep emissions reduction and other community energy goals is not
possible without the full authority and resources of a utility committed to achieving 100
percent renewable energy within the next 15 to20 years OR significant state-level policy
reform.
Examples of the constraints posed by the existing utility and regulatory structure include:
• Communities cannot choose to purchase power from clean energy suppliers, solar
power or other local generation;
• Local generation cannot be shared across property lines;
• An individual property cannot generate more than 120 percent of the energy
consumed on that property;
• Communities cannot invest in local infrastructure to support innovation,
resilience, community vitality or meeting local goals;
• Communities cannot scale local programs to align with their goals without
independent funding sources and greater access to data;
• There are prohibitions against building local generation on sites where an on-site
load does not exist;
• Community solar gardens are limited to a competitive bid process and the
environmental benefits (RECs) do not remain in the community; and
• There is an inability to promote adoption of certain technology or behaviors
through innovative rate design.
A more thorough list of limitations is outlined in Attachment A, “Energy Future Goals
Matrix.”
City Council Study Session Page 40 of 76
Energy Future Goals
The city’s Energy Future goals were designed to ensure that the way the city’s
quantifiable Climate Commitment goals are met is consistent with city values and
priorities. If the city does not municipalize, gaps will exist in meeting each one of these.
Examples of some of these limitations is shown in Table 3.
Table 3: Limitations to Meeting Energy Future Goals
Energy Future Goal Limitations in Regulated Electricity Monopoly
Ensure a stable, safe and
reliable energy supply
Jurisdictions are not allowed to direct investments in
their local distribution system. For example, reliability
projects are extremely limited for customers and
undergrounding of lines is under the control of the utility.
Ensure competitive rates,
balancing short-term and
long-term interests
Rates are determined through the Public Utility
Commission’s regulatory process.
Significantly reduce
carbon emissions and
pollutants
The most impactful tactic to reduce emissions is
decarbonization of our energy supply. See section below
on 2050 Emissions Reductions Goals.
Provide energy customers
with a greater say about
their energy supply
Customers are not currently able to choose their energy
supplier. In addition, there are a number of restrictions on
creative customer choice options such as peer-to-peer,
microgrids or virtual net-metering.
Promote local economic
vitality
There are few mechanisms fostering local innovation and
most energy expenditures leave the community (almost
$300M annually6). Also, Colorado municipal utilities
have bills that are lower than investor-owned utilities for
residential and commercial customers7.
Promote social and
environmental justice
There are some programs that exist in the regulatory
context, but more customized local programs could
prioritize these community values.
2050 Emission Reduction Goals
As an early leader in climate action, Boulder was one of the first cities to recognize that
achieving the emissions reduction levels necessary to stabilize climate by 2050 requires
both transitioning most energy uses to electricity (electrification), and sourcing most or
all this electricity from renewable sources. This insight was a primary consideration in
the extended negotiations that took place with Xcel Energy around the extension of the
franchise agreement in 2010, and the subsequent formal partnership explorations that
took place in 2014 and 2017. In all cases, Xcel was unable to meet the city’s needs for
renewable electricity.
6 https://www.usdn.org/uploads/cms/documents/cnca_infographic_-_boulder.pdf
7 http://docs.wixstatic.com/ugd/104ed3_9f89a4a0de7245b79297127990d9a646.pdf
City Council Study Session Page 41 of 76
City staff conducted extensive modeling of the emissions reduction potential under four
different electricity source scenarios, Figure 4:
• Xcel’s 2016 Energy Resources Plan 4 (Xcel ERP midline)– Scenario A
• Xcel’s 2016 Energy Resources Plan 4D – a scenario with more aggressive
adoption of renewables than Plan 4– Scenario B
• A gradual transition to a municipal utility (additional renewables) – Scenario C
• An accelerated transition to a municipal utility that achieved 100 percent
renewable electricity by 2030 (Accelerated muni)– Scenario D
Figure 4: Percent Emissions Reduction Below 2005 Baseline, Utility Scenarios A
through D
Key takeaways from this modeling are summarized in Table 4 below.
Table 4: Key Takeaways from Emissions Reduction Modeling
Potential Emissions
Reduction by 2050
Cumulative Emissions Reduction
by 2050
Xcel 64%
Compared to the Xcel ERP midline
(A), an accelerated municipal utility
(D) would avoid 29 million metric
tons of carbon—the equivalent of
eliminating 16 years8 of TOTAL
community emissions. The figure
below compares all four scenarios.
Municipal Utility 75%
8 Based on the community’s 2015 emissions generation
City Council Study Session Page 42 of 76
If comparing only the emissions reduction in the year 2050, the Xcel scenarios might
appear to achieve most of what a municipalization approach accomplishes. However, as
recent assessments have shown, an even more critical metric is the total amount of
carbon that can be released before causing significantly more global warming and
climatic destabilization. Staying within this “carbon budget” is critical and underscores
the importance of accelerating near-term emissions reduction.
Figure 5 displays the cumulative emissions differences across the four scenarios through
2050. Under an accelerated municipal utility, the community would emit 67 percent less
carbon than in the accelerated Xcel renewables scenario—a total of over 14 million
metric tons less carbon. Compared to the Xcel midline, an accelerated municipal
utility would avoid 29 million metric tons of carbon—the equivalent of eliminating
16 years9 of total community emissions.
Figure 5: Total Cumulative Emissions of the Four Scenarios
ANALYSIS – PARALLEL PATHS
It is the city’s goal to provide Boulder’s customers with cleaner, reliable and
competitively priced energy. The gap analysis above explains limitations that currently
exist to meet city goals and why parallel paths are needed. The city is committed to the
municipalization process, but there are a number of years and many steps before the city
would have control over its electricity supply. For that reason, the city is actively
pursuing and prioritizing parallel paths to keep all options open to meeting its goals. This
section of the memo describes strategies that will continue regardless of the pursuit of
9 Based on the community’s 2015 emissions generation
City Council Study Session Page 43 of 76
municipalization, such as state-level actions and potential services that could be provided
and/or expanded.
Some of the strategies outlined in this section fall in the category of policy reform, since
without ownership and operation of a retail utility there would be limits to what the city
has the authority to do. While the city cannot control the outcome of state-level policy
reform, staff will continue to work through existing coalitions and partnerships to remove
existing barriers and restrictions at the local level, along with policies that work to
achieve climate and energy goals statewide.
Other strategies in this section are being explored as part of pilot project discussions, and
evaluated in terms of legal, technical and financial barriers to implementation. That said,
it is important to note that these enhanced local programs and services will not
significantly address the gap described earlier, as these programs on their own, without
regulatory reform, do not effectively change Boulder’s energy supply.
Table 5 lists the strategies that could move Boulder towards its goals and are expanded
upon below and in accompanying attachments. Some of these strategies are on staff work
plans for 2018 but many are not, staff requests council feedback on ones that should be
prioritized.
Table 5: Potential Non-Municipalization Pathways Towards Boulder’s Energy Future
Goals
Strategy Description Status
1. Legislative
priorities State-level policy reform On current work plan
2. Regulatory
priorities
Intervention at the Public
Utilities Commission (PUC),
the regulating body of Xcel
On current work plan
3. Regional
Collaboration
Work with local partners such
as CU, Boulder County, and
others, towards common goals
On current work plan,
but understaffed
4. Partnership with
Xcel Energy
Explore partnerships
opportunities with Xcel
Not on current work
plan
5. Buy Renewable
Energy
Certificates
(RECs)
Analysis and
recommendations on the role
RECs play in meeting goals
On current work plan
6. Solar Subsidies Analysis and exploration of
subsidies for solar energy
Very limited resources
on work plan
7. Additional
Strategies
A list of other possible
strategies to explore such as
expansion of existing
programs.
Either not on current
work plan or
understaffed
City Council Study Session Page 44 of 76
1. Legislative priorities
The city will continue to advocate for the development and implementation of statewide
policies in support of the Colorado Climate Plan and 2017 Executive Order issued by
Governor Hickenlooper. However, without the legislature adopting new policies that
allow cities more local control of their energy resources, most communities have no
control over the ability to achieve their goals unless they have their own utility. Boulder
will continue to advocate for the adoption of policies that:
• Preserve and support the ability of local governments to engage in climate action
efforts, support GHG reductions and support adoption and implementation of
state climate goals
• Facilitate strategic electrification and thermal decarbonization of buildings
• Expand the development of climate change adaptation strategies
• Enhance customer energy choice
• Increase public access to energy data
• Support energy utility and regulatory enhancements
• Increase energy efficiency
• Encourage more widespread adoption of electric and efficient motorized vehicles
including autonomous vehicles
• Support reform of residential Property Assessed Clean Energy (PACE) finance
statutes
• Support creation of market mechanisms aimed at cutting carbon emissions
• Support improvements to the Colorado oil and gas conservation commission’s
oversight of oil and gas drilling and preservation of local control to adopt
regulations, moratoriums or other limits as necessary
Details of each of these broad categories have been included in the city’s draft Legislative
Agenda.10 Council is scheduled to review the proposed 2018 Agenda on Nov. 21 and
Dec. 5 of this year.
2. Regulatory priorities: Lobby for changes at the Public Utilities Commission
Since 2009, the city has intervened in Xcel proceedings before the PUC on issues
affecting city operations as well as cases that influence the ability of the community to
achieve its Climate Commitment goals.11 Examples of city advocacy at the PUC include
participation in Xcel rate cases, electric resource plans, renewable energy standard
compliance plans, demand-side management and energy efficiency plans, smart grid, data
privacy, electric vehicle and other technical proceedings (see Attachment F, “Public
Utilities Commission (PUC) Interventions and Activity,” for more detail).
10 https://bouldercolorado.gov/policy-advisor/state-federal-legislative-matters
11 For example, in a case focused on the Renewable Energy Standard, intervening parties such as cities,
environmental advocates, solar developers, the consumer advocate and the staff of the PUC evaluate Xcel
proposals and work with the company to establish targets for rooftop solar and design programs that meet
the needs of customer groups that lack access to existing programs based on local experience.
City Council Study Session Page 45 of 76
Intervention at the PUC is a resource-intense process which spreads limited resources of
intervening parties thin. This has resulted in settlement agreements instead of litigation,
which can be beneficial; however, it also means that it is important for the city to
intervene to have a seat at the negotiating table. Regardless of any decision related to
municipalization, the city will continue to intervene in dockets on behalf of the residents
and businesses in Boulder.
Table 6 below describes current interventions at the PUC and the implications of the case
to Boulder, more detail on these cases and the implications to the city can be found in
Attachment F, “Public Utilities Commission (PUC) Interventions and Activity.”
Table 6: Current and Planned Interventions at the PUC
Current and Planned Interventions Implications
Electric Resource Plan (ERP)
The ERP determines the amount and type of
new generation Xcel will acquire to meet
anticipated future load.
Demand-Side Management Strategic Issues
(DSM)
This case focuses on the vision and goals of
future DSM plans, including targets for energy
efficiency and how these programs will be
implemented.
2018-2021 Multi-Year Rate Plan (MYP)
The MYP proposes to increase rates at least
9.5 percent for residential and small
commercial customers and 4.5 percent to 8
percent for large commercial and industrial
customers. Changes in rates affect not only
monthly bills but the economics of rooftop
solar, energy efficiency and electric vehicle
charging.
Rules governing Electric Resource Plan
(ERP), Renewable Energy Standard (RES),
and enabling technology
This is a repository proceeding to collect
feedback from stakeholders concerning
potential changes to PUC rules governing
resource acquisition, including rooftop and
community solar and other renewable energy
projects that are essential to the city’s Climate
Commitment goals.
Stakeholder Working Groups
These groups emerge from decisions in
previous cases and are intended to resolve
outstanding issues and to develop new
programs based on PUC decisions.
3. Regional Collaboration
Either of the above strategies related to policy reform will require a sustained regional
approach. While meeting the community’s Climate Commitment is vitally important for
Boulder, a regional approach allows diverse communities to pool ideas and resources,
City Council Study Session Page 46 of 76
make faster progress towards mitigation and resilience goals and attract more state and
federal help. Boulder’s regional efforts related to climate and sustainability strive to share
expertise, leverage resources and advance comprehensive solutions to facilitate more
coordinated, effective solutions while raising the profile of regional leadership.
Moving forward, staff will continue to prioritize strong collaboration opportunities with
key governmental partners such as University of Colorado at Boulder, Boulder County
and Boulder Valley School District. Staff will also focus on creating new opportunities
with businesses and organizations. To support a statewide approach to climate action,
Boulder will work closely with key organizations such as the Colorado Communities for
Climate Action (CC4CA) and the Colorado Compact in 2018. More details on CC4CA
the Colorado Compact, and other regional collaborations can be found in Attachment G,
“Regional Collaborations.”
4. Partnership with Xcel
The city and Xcel have been involved in various partnership discussions since the
franchise expired in 2010 in pursuit of an alternate path to municipalization. These
conversations have not resulted in a successful partnership to date. Going forward, in
addition to participating in Xcel’s standard offerings, a few known paths to partnership
exist and staff will seek council feedback about which ones to pursue. They include:
● Entering a gas and electric franchise
● Exploring Xcel’s Partners in Energy program, services to develop and implement
an energy plan. Details about this plan and a case study from Louisville are
included in Attachment H, “Xcel Partner’s in Energy Program Summary.”
● Consider other strategic relationships or agreements such expanding programs,
further exploration in new technologies, public/private partnerships to develop
local generation (such as qualifying facilities12) and behind-the-meter13 solutions.
A key finding is that “Partners in Energy” is a marketing tool for existing Xcel Energy
demand-side management and energy efficiency programs. The program offers
consulting services to design and implement an “Energy Action Plan” that is less
12 A qualifying facility is a class of energy generation facilities which receives special rate and regulatory
treatment. Generating facilities in this group are known as qualifying facilities (QFs), and fall into two
categories: qualifying small power production facilities and qualifying cogeneration facilities. QFs have
two opportunities to interconnect to Xcel's system: (1) a QF smaller than 100 kW can interconnect under an
established tariff or (2) a QF larger than 100 kW can interconnect if selected as part of a compe titive
resource acquisition, typically during the Electric Resource Plan competitive solicitation. In some states, it
is possible for QF larger than 100 kW to interconnect outside of a competi tive resource solicitation. If this
were the case in Colorado, it may be easier for the city to build larger -scale renewable resources outside of
existing Xcel programs.
13 Behind-the-meter refers to generation or technology that exists on site and is installed on the customer’s
side of the meter, rather than the electric grid/utility side. The most common examples are rooftop solar and
diesel generators. Behind-the meter technology can reduce carbon emissions and provide critical back-up
power during a grid outage, enhancing community resilience.
City Council Study Session Page 47 of 76
comprehensive than what has already been undertaken by Boulder staff and community
members. It is intended for communities that have not taken the steps Boulder has and
that do not have the staff resources or community commitment available in Boulder.
The city and Xcel are not currently engaged in partnership discussions, beyond
negotiating agreements to comply with the PUC order, but the city remains open to these
conversations should the opportunity arise.
5. Buy Renewable Energy Certificates (RECs)
Renewable Energy Certificates (REC) represent the environmental attributes associated
with generation from wind, solar and other eligible energy resources as defined in the
Renewable Energy Standard Act (RESA). A REC is not electricity, but rather an
accounting mechanism designed to prove that electricity was generated from a renewable
resource. In other words, ownership of RECs is required to claim environmental benefits
on renewable energy.14 When 1,000 kWh are generated from a renewable source, this
represents one “REC.” A REC must be “retired” on behalf of the purchasing party so that
no other party can also claim that its power was produced from an individual renewable
resource. The RESA requires Xcel to retire RECs equivalent to 30 percent of its annual
sales by 2020 with specific carve-outs for rooftop and community solar.
RECs can be sold either bundled with electricity or independent of the purchase of
electricity. Many companies, including Xcel, sell unbundled RECs to customers with
environmental goals. These RECs may come from renewable resources in Colorado or
elsewhere in the United States. State laws also permit companies to “bank” RECs that are
not needed for compliance with the RESA for sale in future years. In other words, REC
products available today may or may not be produced from new renewable resources that
may or may not be in Colorado. As a result, City Council determined in 2007 that RECs
could not be used to meet Boulder climate goals.
Additionally, the city could not afford to purchase enough RECs to offset the
community’s electricity use. Xcel sells RECs they generate that are not needed for
compliance with the RESA through the Windsource program. Windsource RECs cost 1.5
cents per kilowatt-hour, in addition to standard rates. In 2016, Boulder residents and
businesses used approximately 1.3 billion kilowatt-hours. It would therefore cost Boulder
an additional $20 million per year to buy Windsource RECs equal to 100 percent of
annual consumption15. More detail on the current environment for RECs in Boulder can
14 For instance, if a local business installs solar panels but sells the RECs to Xcel Energy via Solar Rewards
to improve project economics, that business cannot claim the environmental benefits of the solar power.
Solar Rewards is the incentive program by which Xcel buys RECs to comply with the Renewable Energy
Standard. In order to retain the RECs, a customer with rooftop solar cannot participate in Solar Rewards (or
sell RECs to any other buyer).
15 Windsource is priced based on the cost of renewables required for an Xcel customer to reach “100%
renewables.” The amount of additional renewables (and price) includes the percentage of renewables
already on the Xcel system for RESA compliance. It is therefore difficult to compare the cost to purchase
City Council Study Session Page 48 of 76
be found in Attachment I, “Current Environment for RECs in Boulder.” Staff is
planning on returning to council in April for a larger discussion of RECs and the city
policy for RECs for both city-owned facilities and for city GHG accounting.
6. Subsidize rooftop solar and/or community solar throughout the city
The city currently offers some solar subsidies both directly and indirectly. The solar
grants program16 provides direct subsidies to non-profit organizations and affordable
housing and the solar rebate program provides a sales tax rebate on solar systems. The
city also worked with Boulder County to negotiate three solar (plus electric vehicle)
group purchase discount programs in fall 2015, spring 2016 and fall 201617. Finally,
EnergySmart, the award-winning joint program between the city and the county, has
rebated the installation of 432 kW of solar PV in Boulder.
To make progress towards Climate Commitment goals for local generation and
renewable electricity, community members have proposed that the city could offer
additional subsidies for local and community solar projects. The subsidies could take
several forms, including an upfront installation incentive, a production-based incentive or
a contribution to make qualifying facilities economically competitive with Xcel tariffs.
Table 7 below describes each of these options.
Table 7: Examples of Solar Subsidies
Subsidy Description
Upfront Incentive Customers receive a lump sum payment to
reduce the initial cost of the system.
Production-based incentive
Customers receive a payment based on the
monthly generation of the system, like
Xcel’s Solar Rewards program. This
payment could be in addition to or in
replacement of Solar Rewards.
Contribution to qualifying facilities18
Upfront or ongoing payment to reduce the
cost of a qualifying facility so that the
project is economical relative to the
payment received from Xcel’s small
power production tariff.
Windsource RECs vs. other REC products since the price for alternative REC products do not factor the
current Xcel renewable mix.
16 In 2016 and 2017, a total of $144,781 funded 392 kW for non-profits and affordable housing
17 This program resulted in the installation of 339 kW of residential solar and 613 kW of commercial solar
in the city (as well as the purchase of 198 electric vehicles).
18 The economics of qualifying facilities (generation smaller than 100 kW, connected directly to the
distribution system) are more challenging to evaluate. The published tariff does not provide price certainty
for the entire life of a project and the values for energy and capacity will change over time based on
increases and decreases to Xcel’s power supply costs.
City Council Study Session Page 49 of 76
Staff completed a high-level analysis on the economics of the production-based incentive.
If the there is a desire to keep the RECs locally, the incentive would need to replace Solar
Rewards and likely be a richer incentive although it is not clear what amount of incentive
would be attractive enough to increase adoption. A local fund that could finance this type
of incentive could support the city’s local renewable energy generation goal . It is
important to note, even with substantial subsidies, other barriers such as limits to the
amount of solar that can be installed per meter and the inability to share energy across
property lines remain unsolved.
7. Additional strategies to consider
The following lists future strategies (dependent on revenue from the CAP Tax and
staffing limitations) that the city would like to pursue towards achieving the climate and
energy goals:
• Full implementation of the Energy Impact Offset Fund, which would support the
development of local renewable energy projects
• Exploration and development of alternatives to the current Climate Action Plan
tax
• Strengthening partnership efforts to focus specifically on accelerating joint
projects with large energy consumers (CU Boulder, large industrial) that
contribute approximately 25 percent of the community’s greenhouse gas (GHG)
emissions;
• Developing and implementing the next phase of SmartRegs regulations;
• On-bill financing programs offered through customer’s water bills;
• Time-of-sale energy efficiency requirements for residential homes;
• Accelerating efforts to reduce GHG emissions with city owned facilities;
• Testing of innovative technologies such as “behind-the-meter” storage and
generation;
• Full implementation of solar and electric vehicle strategies; and
• Accelerate electrification of existing natural gas uses in residential and
commercial buildings
Many of these strategies are already active and will continue to be pursued in parallel to
municipalization. The strategies listed above are by no means an exhaustive list, staff
continually explores new ideas, seeks community input and adjusts approaches as
needed.
NEXT STEPS
Municipalization
The city will implement the following next steps to provide information for a go-no/go
decision in 2019 or 2020:
City Council Study Session Page 50 of 76
• Actions required to acquire the electric system assets including appraisals,
negotiations and potential litigation.
• An application to Xcel, through its Federal Energy Regulatory Commission
(FERC) regulated Open Access Transmission Tariff (OATT), to allow the city
utility to connect to Xcel’s transmission network. This process is necessary to
determine what portion of existing substations would be acquired or if new
substations will need to be built to separate the city electrically from Xcel. The
result of this process will be an input into the overall separation cost.
• A decision will be made regarding the source of power supply.
• City engineers would work with Xcel and a third-party engineer to perform the
detailed design and specification work necessary to be able to solicit bids for the
separation construction. This process is necessary to determine the total cost of
separation.
• The Transition Work Plan will be updated to reflect the recent PUC decision and
other information. The plan is designed to manage the risks of acquisition while
prioritizing the fundamentals of an electric utility: safety, reliability and
efficiency. Elements of the plan will be implemented as necessary prior to the go-
no/go decision to position the city for the eventual start-up of the electric utility.
• In addition to providing timely project updates via the city’s various channels,
communication staff will work to reintroduce the concept of the “utility of the
future” to the community, emphasizing the possibilities including clean
electricity, local generation, customer choice, energy services and partnership
opportunities.
• Staff will re-engage citizen working groups to shape key elements of the utility
including, rates, energy services, resource acquisition, governance, customer
experience and reliability and safety.
• Return to council on Feb. 6, 2018 with information on how the adjustment to base
will interface with ballot measures such as the utility occupation tax and the
impact of the municipalization budget on general fund reserves.
• Return to council on April 10, 2018 with an update on municipalization work
plan.
Climate Commitment
Staff plans to return to council for an April 10, 2018 Study Session. The study session
will cover:
• Brief update/review of the energy related parts of the Climate Commitment
o Present 2016 GHG Inventory results
o Outline high level strategy to reach goals
• Renewable Energy Certifications (RECs) discussion: get feedback from council
on the city’s policy/approach to ownership of RECs (for both city owned facilities
and for the community wide GHG accounting)
A study session covering the other three areas of the Climate Commitment (Ecosystems,
Resources and Equity/Just Transition) is being scheduled for Q4 of 2018.
City Council Study Session Page 51 of 76
ATTACHMENTS
Attachment A: Energy Future Goals Matrix
Attachment B: Municipalization Work Plan
Attachment C: Background
Attachment D: Climate-related Energy Goals
Attachment E: Climate-related Energy Programs, Initiatives and Pilot Projects
Attachment F: Public Utilities Commission (PUC) Interventions and Activity
Attachment G: Regional Collaborations
Attachment H: Xcel’s Partners in Energy Program Summary
Attachment I: Current Environment for RECs in Boulder
City Council Study Session Page 52 of 76
ATTACHMENT A
Boulder Energy Future
Technologies and Practices for Achieving Boulder's Energy Future Goals
Funding
Stable,
safe,
reliable
energy
supply
Competitive
rates (short
/ long term)
Reduce
carbon
emissions,
pollution
Greater
customer
say about
energy
supply
Promote
local
economic
vitality
Promote
social and
environmen
tal justice
Status Quo
Local
Electric
Utility
May require
additional city
funding source
1 Deployment of local microgrids
Subsections of the grid which
can operate independently for
periods of time ,,,,,,
2 Enhanced reliability and
resilience
Identification of critical loads
within the city, and ability to
direct investment in distribution
system ,,,,
3
Aggressive undergrounding of
electric lines for higher
reliability/resilience
Ability to underground vital
distribution system components.
,,
4 Enhanced voltage optimization
Fine-tuning the end-of-line
voltage to improve efficiency for
industrial customers ,,,,
5 Wireless internet utilizing AMI
Using extra bandwidth or
channels on smart meters to
provide a public wife network ,,
6 Demand-response technologies
Changes in customer use
triggered by price or
environmental triggers ,,,,,,
7 Development of programs and
services to shed load
Modifying specific loads to
reduce peak demand
,,,,
8 Energy savings performance
contracts
Contractor's pay dependent on
success in saving energy
,,,,,
9 Zero Energy districts A physical region with zero net
energy consumption
,,,,,,
10
Customer access to In-home
energy use tools and
dashboards
Physical or virtual displays
showing customer's real-time or
aggregate energy use ,,
11
Progressive energy
conservation and efficiency
programs
Programs promoting or
incentivizing conservation and
efficiency ,,,,,
12 Community Choice Aggregation Residents re-define. Not
currently available in CO.
,,,,
13 Customer information services
and programs
Centrally sponsored energy
literacy and education programs
,,,,
14 Innovative rate structures Time-of-use, tiered, demand,
budget billing, etc.
,,,,,
15 On bill financing
Financing for customer
ownership of efficiency
upgrades and distributed
generation
,,,,
Technology or Practice
*see References Section at bottom for notes
and links to examples
Description
Energy Future Goals Authority
Promotes goal or objective
Technically and legally possible under current regulatory and statutory requirements
Technically and legally possible under current regulatory and statutory requirements, but requires Xcel Energy partnership
May require regulatory approval in addition to Xcel Energy partnership and funding
Not technically or legally possible under current regulatory and statutory requirements
Section 2: Demand-Side Strategies
Section 1: Grid Modernization
Section 3: Customer Choice
Section 4: Rate/ Financing Structure
City Council Study Session Page 53 of 76
ATTACHMENT A
Boulder Energy Future
Technologies and Practices for Achieving Boulder's Energy Future Goals
16 Net metering in excess of 120%Customers are not limited in on-
site energy production
,,,,,,
17 Feed-In-tariffs (FIT)
Mandated rates at which
customers may sell power back
to the grid ,,,,,
18 Wheeling power from city-
owned resources
Ability to use power from
remotely owned generation such
as hydro ,,,,
19 Pumped storage
Storing off peak, cheap energy
in a pumped hydro reservoir
system ,,,,,
20 In–line micro hydroelectric
generation
In-line generation incorporated
into existing water delivery
system ,,,,,
21 Utility–scale energy storage
Large scale storage utilized to
add resilience and reduce peak
loads ,,,,,
22 Biogas/biomass generation
facilities
Utilizing municipal or agricultural
waste to produce energy
,,,,,
23
Widespread deployment of
electric vehicles and Vehicle-to-
Grid technology
Charging and discharging
electric vehicles for energy
storage and grid stability ,,,,
24 Ownership options in utility-
scale renewable power projects
Fully owning or purchasing
portions of large wind or solar
power installations and sell into
the Xcel system ,,,,,
25 Customized rebates and
incentives based on local needs
City incentivizing local DSM and
generation options
,,,,,,
26 Expand solar gardens beyond
existing restrictions
Enhanced access to solar
gardens beyond existing limits
,,,,,,
27 Sustainability performance
metrics
Mechanism for measuring
progress toward goals and
standardizing verified results ,,,
28 Renewable Energy Credits
(RECs)
Buying and selling renewable
credits to meet portfolio
standards ,,,,
29 Distribution Resource Planning
identify optimal locations for the
deployment of distributed
resources ,,,,,
30 Utility model that prioritizes
energy use reductions
An entity charged with meeting
efficiency or sustainability goals
rather than making profit ,,,,,
31 Use funding for pilot programs Federal funding available for
some types of energy projects
,,,
32 Comparative Bills / Peer
Ranking
Showing customers where their
energy consumption ranks
against their peers ,,,
33 Consideration of full life-cycle
costs
Adopting a long-term view of life-
cycle costs and benefits
,,,,,
34 Research Partnerships
Leveraging local and/or national
research labs to explore
innovative practices ,
1
2
3
4
5
REFERENCES
http://smartgrid.ieee.org/august-2012/647-smart-grid-implementation-in-sacramento
http://smartgrid.ieee.org/november-2012/696-epri-smart-grid-demonstrations-an-update
http://www.smartgridnews.com/artman/publish/Delivery_Microgrids/Microgrids-focus-on-security-creating-needs-for-UPS-storage-5795.html/#.UbCyKqA5TRG
http://www.energy.ca.gov/research/notices/2010-10-25_symposium/presentations/4%20Microgrids%20for%20Distributed%20Renewables.pdf
http://www.npr.org/2012/02/01/146158822/if-power-lines-fall-why-dont-they-go-underground
http://www.smartgridnews.com/artman/publish/Delivery_Grid_Optimization/Voltage-optimization-drumbeat-continues-Cooper-wins-significant-AEP-demo-3922.html#.UboNBPnVB5s
http://santaclarafreewifi.com/about.html
Section 5: Local Generation
Section 6: Utility Business Model
City Council Study Session Page 54 of 76
ATTACHMENT A
Boulder Energy Future
Technologies and Practices for Achieving Boulder's Energy Future Goals
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
https://social.opower.com/welcome
http://www.glendalewaterandpower.com/save_money/residential/home_energy_reports.aspx
http://www.nytimes.com/2009/01/31/science/earth/31compete.html?_r=0
http://en.wikipedia.org/wiki/Social_impact_bond
http://www.economist.com/blogs/blighty/2013/05/prisoner-rehabilitation?fsrc=scn/tw_ec/the_peterborough_principles
http://biomassmagazine.com/articles/5491/renewable-energy-certificates-and-renewable-portfolio-standards
http://aceee.org/policy-brief/utility-initiatives-integrated-resource-planning
www.raponline.org/document/download/id/6368
http://spectrum.ieee.org/green-tech/conservation/the-rise-of-the-energy-efficiency-utility
http://www.veic.org/index.aspx
http://greatergreaterwashington.org/post/18586/dc-sustainable-energy-utility-saves-energy-and-creates-jobs/
http://aceee.org/sector/state-policy/delaware
http://www.energizedelaware.org/
http://www.energizedelaware.org/
http://www.dcseu.com/
http://energytrust.org/
http://www.focusonenergy.com/
http://www.pnwsmartgrid.org/
https://www.tep.com/renewable/home/bright/
http://en.wikipedia.org/wiki/Global_Reporting_Initiative
http://www.xcelenergy.com/staticfiles/xe/Corporate/CRR2011/gri-index/about.html
http://www.smartgridnews.com/artman/publish/Business_Policy_Regulation/The-good-and-the-bad-about-the-Illinois-smart-grid-performance-metrics-5786.html#.UbYrZ_nVB5s
http://www.awea.org/newsroom/pressreleases/utilitiesflocktowind.cfm
http://www.governorswindenergycoalition.org/?p=990
http://www.bloomberg.com/news/2013-03-24/nrg-skirts-utilities-taking-solar-panels-to-u-s-rooftop.html
http://en.wikipedia.org/wiki/SolarCity
http://www1.eere.energy.gov/office_eere/pdfs/aceti_concordlight.pdf
http://www1.eere.energy.gov/office_eere/pdfs/libby_austinenergy.pdf
http://www.icleiusa.org/action-center/learn-from-others/bringing-down-the-cost-of-solar-through-community-shared-solar-programs
http://www.cpuc.ca.gov/PUC/energy/DistGen/sgip/
http://www.dailyfinance.com/2013/06/05/solarcity-launches-zero-down-solar-financing-for-h/
http://blog.rmi.org/blog_06_12_2013_retail_electricity_prices_its_time_to_unbundle_the_package
http://americancityandcounty.com/water/public-water-system-hydropower-201105
http://www.bloomberg.com/news/2013-05-23/pg-e-operating-second-energy-storage-system-with-ngk-batteries.html
http://www.ameresco.com/news/first-mover-wastewater-utilities-convert-human-biogas-natural-gas
http://www.glendalewaterandpower.com/utility_modernization/electric_vehicle_rebate.aspx
http://grist.org/solar-power/2012-01-06-gainesville-florida-becomes-a-world-leader-in-solar/
http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=FL77F&re=1&ee=1
[would allow the city to utilize it's owned hydro power rather than selling to Xcel at wholesale and purchasing back at retail]
http://www.sbireports.com/about/release.asp?id=2942
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=CA02R&re=1&ee=1
http://www.naperville.il.us/eec.aspx
http://www.energyedcouncil.org/
http://www.iowapolicyproject.org/2009docs/090617-EnergyRates-xs.pdf
http://www.seattle.gov/citylightreviewpanel/documents/SAIC%20SCL%20Review%20Panel%20Presentation%20October%2025%202012.pdf
http://smartgrid.ieee.org/august-2012/647-smart-grid-implementation-in-sacramento
http://www.greentechmedia.com/articles/read/oklahoma-gas-electric-is-not-scared-of-the-home
http://thegazette.com/2011/11/02/battle-brewing-over-prepaid-electric-meters/
http://www.srpnet.com/payment/mpower/default.aspx
http://www.aarp.org/politics-society/advocacy/info-12-2011/prepay-for-electricity-az.html
http://www.greentechmedia.com/articles/read/Prepaid-Electricity-Plans-Gain-Momentum
http://ucsdnews.ucsd.edu/newsrel/general/08-30DemandResponse.asp
http://en.wikipedia.org/wiki/Open_Automated_Demand_Response
http://en.wikipedia.org/wiki/Energy_Savings_Performance_Contract
http://www.ctenergyinfo.com/111003%20Final%20CT%20ESPC%20Best%20Practices-1.pdf
http://www.sdge.com/save-money/reduce-your-use/reduce-your-use-rewards
https://www.gru.com/TabID/3660/Default.aspx
http://www.realenergywriters.com/ee-blog/2011/12/15/on-bill-financing-why-isn%E2%80%99t-everybody-doing-it/
http://aceee.org/research-report/e118
http://energy.ky.gov/Programs/SEE%20KY/March%202012%20Meeting/Residential/ACEEE_On-Bill%20FInancing%20Review_Dec%202011.pdf
http://switchboard.nrdc.org/blogs/phenderson/new_on-bill_financing_paper_ou.html
http://www.cityofdenton.com/departments-services/departments-a-f/denton-municipal-electric/customer-programs/p-l-u-s-one
http://fortzed.com/
http://www.greenbuildingadvisor.com/blogs/dept/musings/home-dashboards-help-reduce-energy-use
http://www.energy.ca.gov/research/notices/2010-10-25_symposium/presentations/4%20Microgrids%20for%20Distributed%20Renewables.pdf
https://www.gru.com/TabID/3662/Default.aspx
http://www.glendalewaterandpower.com/save_money/residential/sh_energy_saving_rebates.aspx
http://www.glendalewaterandpower.com/save_money/residential/ac_tuneup.aspx
http://www.glendalewaterandpower.com/save_money/large_business/incentives_program.aspx
http://www.scwa.ca.gov/cca/
http://www.oak-park.us/aggregation/
http://ballotpedia.org/wiki/index.php/California_Proposition_16,_Supermajority_Vote_Required_to_Create_a_Community_Choice_Aggregator_%28June_2010%29
City Council Study Session Page 55 of 76
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Municipalization Transition Work Plan Schedule Overview
Activity
2017 2018 2019 2020 2022
QUARTER QUARTER QUARTER QUARTER QUARTER
11/3/2017
2023
QUARTER
Cut-over and Start-up
PSCo OATT Load Interconnection Process
Transition Planning and Implementation
Condemnation
QUARTER
Final Separation Design and Bidding
Go - No/Go Decision & Community Vote
PUC Decision
Financing
90-day filing at the PUC of agreements with Xcel
2021
Separation Construction
Separation Construction and Pre Cut-over Cost Financing
Acquisition and Start-up Financing, Refinancing of Pre Cut-over Costs
Bid Award and Contract Negotiation
Prepare Appraisal
Council Authorization/Negotiation/Filing
Finish Prelim Issues/Start Discovery
Hearing and Appeals
Separation Engineering and Construction
Power Suppy RFP and Contract
ATTACHMENT B
City Council Study Session Page 56 of 76
Background
The Boulder community has a long history of participation in both recognizing and taking action
in response to climate change. Boulder is home to thousands of climate scientists, many among
the most globally prominent in their field. Boulder’s first formal city climate action initiatives
took place in 2002 with the passage of Resolution 906. This resolution committed the city to
achieving the emissions reduction goals set under the international Kyoto protocol of 1997. This
international agreement—which the US chose not to sign—set a 7 percent emissions reduction
goal by 2012.
In 2013, the city initiated work to update its climate action plan and establish a new goal aligned
with more recent global climate change science, particularly the UN established International
Panel on Climate Change. This science1, cross validated by many other studies, indicate that
emissions reductions of 80 percent or more will be necessary by 2050 or sooner to reduce the
probability that the earth will experience run-away global warming and its devastating potential
consequences.
This is also the science upon which the 2016 Paris Climate Accord was developed. This
international agreement was signed by 197 nations, the largest gathering of nations in history.
The Paris agreement provides a roadmap for coordinated global action. For the U.S., it
established a national framework within which both state and municipality emissions reduction
efforts could be aligned and coordinated. With the Trump administration’s decision to withdraw
the U.S. from this agreement, cities including Boulder have once again demonstrated leadership
by pledging to uphold this agreement in-spite of the Trump administration’s position. There are
currently over 382 cities that have signed the Climate Mayor’s statement committing to
emissions reduction efforts aligned with the Paris Agreement.
Accelerating Climate Change Shapes Evolving Action Strategy
Recent assessments of global climate change indicators clearly demonstrate that climate change
is now both underway and may be accelerating.2 Scientists based in Boulder were among the first
to begin publishing clear evidence of these phenomena. The community has also been directly
impacted by the emerging impacts of climate change. Fires in the early part of this decade were
followed by a historic flood. Local landscapes have also shown increasing signs of changes as
increasing temperatures and more extreme weather conditions make it difficult for some species
to continue to flourish in this environment. A preliminary analysis by OSMP staff of plant
species viability under projected future climate conditions indicate that up to a third of local
species may not find habitable conditions in this area by mid-century.
This growing recognition that human-augmented climate change is already underway compels a
review of climate action strategies. Previously, the emphasis has been on global greenhouse gas
emissions reduction. Next stage climate strategies will need to more actively consider how
strategies also contribute to local capacity to respond and adapt to increasing climate change
impacts. Discussions about this evolution of climate action strategies are a prominent topic
among leading cities around the world. The keynote address at the 190-city Urban Sustainability
1 Recent studies
2 IPCC 2015 Assessment
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City Council Study Session Page 57 of 76
Director’s Network (USDN) recent annual meeting featured Paul Hawken describing the new
emissions “Drawdown” analysis. A central theme in the 100 high impact strategies Hawken’s
team analyzed was the critical importance of integrating emissions reduction strategies with
community development and resilience priorities.
Previously, the emphasis in the city’s climate work has been on global greenhouse gas emissions
reduction. While this remains critical, the city’s long-term climate strategies will need to
consider how to build local capacity to respond and adapt to increasing climate change impacts.
This will happen in close collaboration with the city’s resilience work, ecosystems planning, and
Open Space and Mountain Parks master planning efforts.
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City Council Study Session Page 58 of 76
Climate-related Energy Goals
Metric 2015 2020 2030 2050
Emissions % GHG reduction1 5% 15% 50% 80%
Electricity Source
% of grid electricity that is renewable % of electricity 22% 40% 100% 100%
Total local renewable energy MW installed 30 50 100 175
Buildings2
Reduction in Total Building Emissions % below 2005 2% 25% 30% 75%
Reduction in Residential Electricity3 % below 2005 1% 1% 3% -2%
Reduction in Residential Natural Gas % below 2005 1% 15% 40% 85%
Reduction in Commercial and Industrial
(C&I) Electricity4 % below 2005 -16%-20%-6%6%
Reduction in C&I Natural Gas5 % below 2005 5%6%15% 35%
Commercial Energy Use Intensity6 kBtu/sqft/yr 113 105 85 60
Transportation 2015 2020 2035 2050
Vehicle Miles Traveled (VMT) Millions of miles 2.65 2.32 1.95 1.59
Walk/Bike/transit/rideshare % of trips 64% 69% 80% 92%
Vehicle energy efficiency MPGe 22 40 61 88
% Complete neighborhoods % of census blocks 26% N/A 80% N/A
Electric & alternative fuel vehicles % light duty fleet 1% 15% 45% 75%
1 Below a 2005 baseline
2 The building energy and emissions values are total amounts, not per capita or per economic output. Both population
and economic output have increased since 2005.
3 Increase in electricity use is expected due to increased electric vehicle adoption and the transition from natural gas to
electricity (which occurs primarily in later years).
4 From 2005 to 2015, there has been a significant increase in electricity in the C&I sector. This is at least partially due to
the addition of a number of high energy intensity buildings, such as marijuana grow facilities and data centers. Increase in
electricity use is expected due to increased electric vehicle adoption and the transition from natural gas to electricity
(which occurs primarily in later years).
5 Natural gas variation is likely due to industrial processes that vary greatly from year to year. Further, natural gas savings
will not be fully realized until 2030 when the Building Performance Ordinance requirements are implemented.
6 Applies only to buildings covered by the city’s Building Performance Ordinance.
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City Council Study Session Page 59 of 76
Climate-Related Energy Programs, Initiatives, and Pilot Projects
In 2018, staff will continue to implement and improve the following core climate and energy
programs:
1.Building Performance Ordinance: Requirements for all large (> 20,000 ft2)
commercial and industrial buildings to rate and report their energy usage and
performance cost effective efficiency actions over time.
a.These rating and reporting and energy efficiency requirements move beyond
current voluntary programs to require actions that reduce energy use and improve
the quality of Boulder’s commercial and industrial building stock.
b.Staff will work to continue to achieve 100% compliance as more buildings are
phased into the requirements, and as the efficiency deadlines approach.
c.Commercial and industrial buildings are responsible for 51 percent of Boulder’s
total greenhouse gas (GHG) emissions. Buildings that rate their energy
performance typically attain an average energy savings of two to three percent per
year. The estimated total GHG reduction anticipated as a result of these
requirements is equivalent to taking more than 21,000 cars off the road every
year. The estimated annual net benefit to the local economy is $8.5 to $14 million.
2.Energy and Building Codes: Energy and sustainability requirements for new
construction and renovations of existing buildings. The city of Boulder has some of the
most progressive and efficient energy codes in the nation, and is working towards a goal
of net zero energy codes for all buildings by the year 2031. In the most recent energy
code update, the city added new requirements for electric vehicle charging infrastructure
and for new buildings to designed to support the installation of solar PV. Current efforts
are focused on the implementation and continued training for staff and the building
community on current codes, and in 2018 staff will begin development of next update
(2020). Future updates will consider the following:
a.Piloting outcome based codes;
b.Increasing the stringency of prescriptive codes;
c.Phase in other non-energy sustainability requirements, based off of the
International Green Conservation Code (IgCC);
d.Encourage the electrification of buildings; and
e.Address refrigerant leakage.
3.EnergySmart and Partners for a Clean Environment (PACE): In partnership with
Boulder County, these programs provide rebates and one-on-one advising services to
homes and businesses in the areas of energy, water, waste and transportation. An expert
Energy Advisor is assigned to a home or business owner to answer questions, help
prioritize projects, connect them with qualified contractors, find and apply for incentives
and low-cost financing, and make energy upgrades easier and more affordable. Since the
program’s inception:
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City Council Study Session Page 60 of 76
a. over 2,700 businesses have participated and avoided over 11,000 metric tons of
CO2 (equivalent to taking ~2,400 cars off the road), and
b. over 9,700 homes have participated and avoided over 7,000 metric tons of CO2
(equivalent to taking ~1,700 cars off the road).
4. Marijuana Energy Requirements: Continued tracking and enforcement of the
requirements for marijuana business to offset 100% of their electricity consumption with
renewable energy. Staff will also explore the possibility of updating the ordinance
language to reflect long term goals for the program, and partner with Boulder County to
educate licensees about energy saving opportunities for their facilities.
5. SmartRegs: Requirements for energy efficiency (equivalent to the 2000 International
Energy Conservation Code) in rental housing units, which account for over half of the
housing stock, within the city of Boulder. Passed in 2010, landlords were given two
rental license cycles (8 years) to comply. Currently, 80% of units are in compliance and
all units must be in compliance by December 31, 2018. In the final year of
implementation, staff will work towards 100% compliance through outreach, education,
and enforcement.
6. Universal Zero Waste Ordinance: The Universal Zero Waste regulations apply to all
property owners and businesses within the City of Boulder. Originally passed in June
2015, these requirements went into effect in June of 2016, and enforcement began mid-
2017. To date, over 95 percent of businesses that receive a “warning” letter, come into
compliance within 30 days. Zero waste advisors on city staff and through the PACE
program help businesses move beyond the “bins and signs” requirements to minimize
contamination and maximize waste diversion. In 2017, over 500 businesses took
advantage of the city’s zero waste advising services. As part of the citywide enterprise
management system (EnerGov) 2018 phased work plan, staff will be developing a
property owner and business self-reporting form to allow citywide compliance tracking
of the Universal Zero Waste requirements. Staff will also be managing a community-
based planning processes associated with future development at 6400 Arapahoe to create
a reuse-focused innovation center.
7. Community Engagement: Build community partnerships and continue community
engagement efforts. Staff will continue 2017 work to engage with Boulder’s faith
communities and support climate action both at the congregations and with their
members. Martin Acres will be a focus for neighborhood climate engagement, as part of
the National Renewable Energy Laboratory project to explore accelerated transition to
renewable energy. Staff will also continue to build community around climate through
the Boulder.Earth, a Boulder-focused website with a sustainability calendar, directory of
organizations, immediate ways to take action and capabilities to build connections
between groups and people both online and off. The city will continue to help shape the
site and be an engagement partner, including sitting on the site stewardship council and
helping plan in-person events.
ATTACHMENT E
City Council Study Session Page 61 of 76
In 2018, staff plans to continue to work on the following key energy pilot projects:
1. Resilient Energy Infrastructure Pilot Project: The city began its energy resilience
planning initiative supported by a Department of Energy (DOE) Resilient Electricity
Delivery Infrastructure grant in October of 2015. The purpose of this grant program is to
support cities in developing projects that increase facility and community resilience through
infrastructure.
Specific project sites were selected at Boulder Housing Partners (BHP) and Via Mobility
Services, both of which are now installing systems that combine solar with battery storage
and backup generation to create energy systems that can both reduce overall emissions and
provide backup power to critical site functions during a grid outage. Funding is also going to
CU Boulder to help conduct a renewable energy deployment optimization study in
partnership with NREL. A final project supports a collaborative effort between the city,
NREL and a local energy analytics firm to conduct one of the first-ever assessments of
residential neighborhood scale renewable energy systems design and integration.
2. Natural Gas Replacement Project: The city received funding through the Carbon Neutral
Cities Alliance (CNCA) to develop a strategy that would support the conversion of
residential natural gas-based appliances to renewable-ready electric appliances. Building on
work the city funded through the Boulder Energy Challenge in 2014, the city has now
completed a first set of tools and pilots that will be integrated into the Energy Smart Program
in 2018. This will include ways of identifying residences that are likely to need both furnace
and water heater replacements as well as the capacity to model the financial and
environmental value of these conversions.
The city also took a lead role in convening a group of over 15 cities along with
representatives of the major heat pump furnace and water heaters at a meeting in San Diego
in late October. This meeting builds on a similar but smaller session held in New York City
in 2016 that resulted in Boulder and three other cities being awarded over $500,000 in grant
support to lead development of a market transformation strategy. This four-city consortium is
now working on next stage funding for expanding these efforts.
3. Boulder Energy Challenge (BEC): BEC was launched in June 2014 to support the
development and commercialization of innovative emission-reducing technologies and
strategies in Boulder. In that initial launch, the Challenge funded all six finalist projects,
totaling $337,500. The program was relaunched in 2017, and the Challenge funded four
projects with $157,600 in total funding. The projects funded in 2017 include:
• EVmatch - Community EV Charging Network
• Rocky Mountain Institute – Unlocking Leasing Solutions for Net Zero Energy
• C3 Boulder & Impact Hub Academy – Boulder.Earth Community Portal
• Just Transition Collaborative - Toward an Equitable Energy Transition for the City of
Boulder
Moving forward, staff is exploring external public and private partnerships to keep this
program running since the CAP Tax budget can no longer support the BEC. Staff is
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City Council Study Session Page 62 of 76
organizing a group of Colorado cities to solicit proposals from outside entities that could run
a regional program for multiple cities, and raise funds from the private sector.
4. Energy Impact Offset Fund (EIOF): To provide a local offset fund for the Marijuana (MJ)
Energy Offset Requirement, the city created a local Energy Impact Offset Fund in
partnership with Boulder Country in 2017. Currently, MJ licensees can pay into this fund to
satisfy the requirement. In the future, the fund may be expanded to other uses such as
compliance with other energy ordinances, or voluntary carbon offsets. Starting in 2018, the
city will collect about $500,000/year for local renewable energy projects, which was
previously going to Xcel (in the form of Windsource subscriptions). In 2018, staff will
explore the following key issues for future development of this fund:
• For the MJ requirements, moving from a $/kWh price to a $/metric ton of carbon
price (based on EPA's social cost of carbon, which increases each year out to 2050).
• Consider using the funds to develop more community solar in Boulder, by partnering
with a solar developer and subsidizing the high cost of land in Boulder County - and
then allocating shares of that solar specifically to the MJ industry and low to middle
income residents.
5. Solar Work: The city is developing a comprehensive solar strategy to provide a roadmap to
meet the local Climate Commitment’s renewable energy generation goals. Consultants are
expected to complete the strategy by the end of 2017 which will allow the city to launch into
implementation in 2018. A community solar working group of local stakeholders and experts
is vetting the strategy and providing input through the development process. The strategy
will:
• Use existing city tools and information to understand citywide demand needs and
solar generation potential
• Align and integrate with multiple existing city energy plans, goals and objectives
• Assess energy storage needs and solutions, based on estimated distribution system
impacts
• Recommend innovative methods for procuring and/or supporting solar across all end
users
• Evaluate strategies using city and community values
• Develop a roadmap for implementation with annual targets and metrics
• Develop recommendations independent of, and based on, municipalization
proceedings
6. Electric Vehicle (EV) Work: The city is conducting both near- and long-term electric
vehicle work related to the development of charging infrastructure, policy and code. In the
near-term the city has received and continues to seek funding for EV charging stations. The
city received $100,000 in funding from the Regional Air Quality Council in 2017 for
charging stations and is working to secure funds from the Volkswagen settlement funds
through both the Electrify America and the Colorado Department of Health and the
Environment allocations. Boulder also filed comments with the Environmental Protection
Agency opposing reconsideration of the light-duty vehicle greenhouse gas emissions
standards. This standard requires corporate average fuel economy to reach 54.5 MPG by
2025 and is considered an important driver in the electrification of passenger vehicles.
ATTACHMENT E
City Council Study Session Page 63 of 76
For long-term planning purposes, the city is developing an electric vehicle strategy to
identify opportunities to accelerate electric vehicle adoption in line with mobility emissions
reduction targets in the Climate Commitment. The strategy will:
• Examine charging infrastructure requirements for resident drivers both with and
without access to home charging as well as the needs of in-commuters, visitors and
transportation network companies such as Lyft, zTrip, Uber and traditional taxis
• Evaluate opportunities to electrify the city organization fleet as well as public transit
• Recommend incentive mechanisms for EV adoption and charging station installation
• Identify code upgrades necessary to support home, workplace and public EV charging
• Identify legislative and regulatory changes critical to EV adoption and charging
installation
ATTACHMENT E
City Council Study Session Page 64 of 76
Public Utilities Commission (PUC) Interventions and Activity
Further Details on Current and Planned Interventions
Current and Planned
Interventions Implications City Action Current Status
Electric Resource Plan
(ERP)
The ERP determines the amount and type
of new generation Xcel will acquire to
meet anticipated future load.
The city filed a Statement of Position
that included a request to consider
Boulder's municipalization as a factor
affecting Xcel's future demand
growth and power supply needs. The
city also argued to include the social
cost of carbon as a sensitivity when
evaluating new resources as well as
other related topics. The city also
filed comments on topics appropriate
for supplemental testimony related
to the Colorado Energy Plan.
The PUC directed Xcel to develop resource
plans assuming both 0 MW and 454 MW of
new generation need. In August of 2017,
Xcel sought to re-open phase 1 to allow the
consideration of a third scenario which
would retire 2 of the 3 coal units at
Comanche, to be replaced by new natural
gas, wind and solar (known as the
"Colorado Energy Plan"). The request to
consider the Colorado Energy Plan
alongside the approved scenarios is
currently pending before the PUC.
Demand-Side
Management
Strategic Issues (DSM)
This case focuses on the vision and goals
of future DSM plans, including goals for
energy efficiency and how these
programs will be implemented.
This case was filed July 3, 2017. The
city intervened on August 2, 2017.
The intervention focuses on the
effect of DSM incentives on the
ability to comply with local energy
codes, the equitability of using geo-
targeting to apply DSM measures and
incentives and the relationship
between the shift in focus toward
load shifting and time- and demand-
based rate design for residential
customers.
Answer testimony from intervening parties
is due December 5, 2017. The city is
currently evaluating the proposal and
developing answer testimony.
ATTACHMENT F
City Council Study Session Page 65 of 76
Current and Planned
Interventions Implications City Action Current Status
2018-2021 Multi-Year
Rate Plan (MYP)
The MYP proposes to increase rates more
than 9% for residential and small
commercial customers and 4-8% for large
commercial and industrial customers.
Changes in rates affects not only monthly
bills but the economics of rooftop solar,
energy efficiency and electric vehicle
charging.
The city plans to intervene in this
case by November 20, 2017.
Xcel filed its multi-year rate increase
proposal on October 3, 2017. Interested
parties have until November 20, 2017 to
file petitions to intervene. These petitions
will be discussed by the PUC at the
November 29, 2017 weekly meeting.
Rules governing ERP,
RES and enabling
technology
These rules play an important role not
only in how Xcel may acquire new
generation, including renewables, but
also the ability of the city and community
members to interconnect local solar and
battery storage projects and to be
compensated for the value provided to
the grid.
The city must file comments by
January 31, 2018.
Stakeholder Working
Groups
These groups emerged from decisions in
previous cases and are intended to
resolve outstanding issues and to develop
new programs based on PUC decisions.
The city is currently participating in working groups focused on new residential
time-of-use and demand charges rates as well as the design of new voluntary
renewable energy programs.
ATTACHMENT F
City Council Study Session Page 66 of 76
Recent Boulder intervention activity at the PUC
1. 2009 Rate Case; Proceeding No. 09AL-299E
2. 2011 RES Compliance Plan, Proceeding No. 11A-418E
3. 2011 Electric Resource Plan, Proceeding No. 11A-0869E
4. 2012-2013 Demand-Side Management Plan, Proceeding No. 11A-631EG
5. 2012 PSCo Verified Application and Petition for Rule Waiver; Proceeding No. 12A-155E
6. 2012 PSCo Advice Letter 1605; Proceeding No. 12AL-250E
7. 2012 Boulder / Denver Customer Data Disclosure; Proceeding No. 12D-395E
8. 2012 Proposed Amendments to Rules of Practice and Procedure; Proceeding No. 12R-500ALL
9. 2012 Boulder / BNSF / Pearl Parkway Roadway and Signal Changes; Proceeding No. 12A-730R
10. 2013 Declaratory Order Concerning Rights of PSCo in Boulder County; Proceeding No. 13D-0498E
11. 2013 Demand-Side Management Strategic Issues, Proceeding 13A-0686EG
12. 2014 Demand-Side Management Plan, Proceeding No. 13A-0773EG
13. 2014 RES Compliance Plan; Proceeding No. 13A-0836E
14. 2013 Possible Revisions and Additions to Electric and Gas Rules; Proceeding No. 13M-1052EG
15. 2014 Boulder Docket on Customer Solar and Demand-Side Management; Proceeding 14A-0102E
16. 2014 Renewable Distributed Generation and Net Metering; Proceeding No. 14M-0235E
17. 2014 Solar Connect Program; Proceeding Nos. 14A-0301E and 14A-0302E
18. 2014 Data Access and Privacy Rules for Electric & Gas Utilities, Proceeding No. 14R-0394EG
19. 2014 Rate Case; Proceeding No. 14AL-0660E
20. 2015-2016 Demand-Side Management Plan, Proceeding No. 14A-1057EG
21. 2015 Boulder / BNSF Wonderland Creek Pedestrian/Bike; Proceeding No. 15A-0114R
22. 2015 City of Boulder Transfer of Assets; Proceeding No. 15A-0589E
23. 2016 Rate Case, Phase 2, Proceeding No. 16AL- 0048
24. 2016 Renewable Connect, Proceeding 16A-0055E
25. 2016 Eligible Energy Resources; Proceeding No. 16A-0117E
26. 2016 RES Compliance Plan, Proceeding 16A- 0139E
27. 2016 Electric Resource Plan, Proceeding 16A-0396E
28. 2016 Revenue Decoupling Adjustment, Proceeding 16A-0546E.
29. 2016 Advanced Grid Intelligence and Security, Proceeding #16A-0588E
30. 2017 Demand-Side Management Strategic Issues, Proceeding #17A-0642EG
ATTACHMENT F
City Council Study Session Page 67 of 76
Regional, National and International Collaborations
Legislative and Regulatory Collaborations
1.Electric Resource Plan—On Aug. 29, 2017 Xcel Energy filed a stipulation as part of the
ongoing Electric Resource Plan (ERP-16A-0396E) asking the Colorado Public Utilities
Commission (CPUC) to approve a process that could lead to $2.5 billion in clean energy
investments in rural Colorado, if there is no additional cost to the company’s electricity
customers. To accommodate cleaner energy generating resources for the state, the
proposal also calls for the consideration of the early retirement of two coal generation
units in southern Colorado. Boulder supported the stipulation, and filed comments in the
proceeding focusing on issues related to ownership of replacement generation, impact on
the reduction of the funds available for distributed generation and cost recovery
mechanisms. The city will continue to be active in the proceeding into 2018.
2.EPA Clean Power Plan—In partnership with 17 US states and four cities, Boulder
intervened in the DC District Court case. The coalition, led by the New York Attorney
General’s office, was formed to defend the Clean Power Plan against motions to stay the
rule. Boulder submitted a Declaration from the mayor which was submitted as testimony
in the case. The city sent an official request to the EPA to hold a public hearing in
Boulder to discuss the repeal of the Clean Power Plan. Boulder continues to be an active
party in the case during 2017.
3.Colorado Communities for Climate Action (CC4CA) —A year-old coalition of local
governments that advocates for state and federal policies to protect Colorado’s climate
for current and future generations. The state and federal actions CC4CA seeks are needed
to complement the strong local climate actions coalition members already have
underway, which include ambitious goals to reduce local heat-trapping emissions and
strong local policies to meet those goals. But local governments simply cannot meet their
climate goals on their own—they also need a better framework of state and federal
climate policies to enable their local actions to be more effective. That reality led to the
creation of CC4CA, in which local governments have joined forces to work for state and
federal actions supporting and complementing local climate-protection actions. CC4CA
membership includes Boulder County, City of Fort Collins, City of Westminster, City of
Boulder, Eagle County, Summit County, City of Lafayette, City of Golden, Pitkin
County, San Miguel County, City of Aspen, Town of Vail, Town of Telluride, Town of
Basalt and Town of Mountain Village.
Regional Technical and Working Group Collaborations
1.Compact of Colorado Communities—Established to bring cities and counties to stand
together in taking constructive and practical climate action. The Compact will
dynamically advance and expand upon city and county efforts to address climate change,
resilience to extreme events and grow a clean energy economy throughout Colorado. The
Compact is in the process of developing its membership resources, and Boulder will
continue to participate through a series of trainings and future activities.
ATTACHMENT G
City Council Study Session Page 68 of 76
2. Colorado Climate Networking Steering Committee—The Colorado Climate Network
(CCN) and the Colorado Municipal League have continued to convene a statewide Local
Resilience Project and the Northern Front Range Resiliency Project to help improve the
resilience of Colorado local governments and local resources to possible climate change
impacts. The report of the Colorado Local Resilience Project, is available at:
www.coclimatenetwork.org/resilience2.htm. A second phase of the program that is now
ongoing focuses on implementation of the recommendations in the report. Additionally,
the CCN will perform the administrative functions for the Colorado Communities for
Climate Action Coalition mentioned above.
3. Local Government Working Group on Public Utilities Commission Issues—
Developed strawman community energy report and participated in meetings with Xcel
Energy technical staff to refine list of energy consumption and programmatic metrics that
will be provided to local governments for climate and energy planning.
4. Boulder Sustainability Alliance—Representatives from CU Boulder, BVSD, Boulder
County and the city have continued to meet to discuss sustainability related issues;
particularly issues associated with energy.
5. Boulder, Boulder County & City/County of Denver Collaboration—Staff from the
four agencies met quarterly to discuss ongoing issues related to energy and climate, waste
reduction and transportation alternatives.
6. Renewable Diesel—Convened group of regional sustainability directors and fleet
managers to evaluate the potential to integrate renewable diesel into fleet operations and
submitted grant application to RAQC to fund feasibility analysis of renewable diesel pilot
in the Front Range.
7. Regional Air Quality Council (RAQC)—This year, the city received approximately
$100,000 to install new electric vehicle charging stations.
National/ International Technical and Working Group Collaborations
1. iUrban Smart City Advisory Group—Participated in three collaborative webinars with
international advisory group members.
2. Beyond Benchmarking Multi-City Working Group—National working group for
knowledge sharing with cities implementing efficiency requirements as part of
benchmarking. Provides Boulder with the ability to provide feedback on industry
standards.
3. Circular Cities Network—Started by the Ellen Macarthur Foundation, Boulder is part of
a new knowledge sharing group that includes Austin, Boulder, Copenhagen, London,
Ljubljana, New York, Petersborough, Phoenix and Rio de Janeiro. Staff participates in
regular webinars with network members.
4. Carbon Neutral Cities Alliance—CNCA is a network of 20 international cities who
have all made a commitment to 80% emissions reduction or greater by 2050 or
sooner. The city has been an active participant and secured many of the first grants
issued by CNCA for innovative pilot projects designed to significantly reduce
emissions. The city will be hosting the 2018 annual meeting in Boulder, CO. Two active
projects for 2017 include:
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City Council Study Session Page 69 of 76
• Thermal decarbonization: Boulder is leading an effort with multiple cities and
external partners to develop strategies to transition off natural gas in the residential
and municipal building infrastructures.
• Zero Net Carbon Buildings: Boulder is part of an effort with 9 other cities and
many external partners to develop city specific pathways to net zero energy codes
and buildings by the year 2030.
5. Urban Sustainability Directors Network—City staff are taking part in several
different USDN related working groups including accelerated net-zero building codes;
emissions reduction projection tool development; ecodistrict planning, carbon tax
strategies and other emerging topics. In December 2016, the city received a USDN
Innovation fund grant to work with three other cities—New York City, Washington DC,
and Burlington, VT to develop a coordinated program to foster retirement of natural gas
appliances with renewable ready heat pumps.
6. DOE “Better Communities” Alliance—The city was invited by DOE to participate in
a new initiative within DOE to work directly with cities to identify opportunities to link
city initiatives around energy and transportation with DOE funding and research
support. Boulder was invited to a meeting in Washington DC in early January of 2017
along with other leading US cities to help DOE develop its 2018-2019 program
priorities.
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City Council Study Session Page 70 of 76
Xcel Energy “Partners in Energy”
https://www.xcelenergy.com/working_with_us/municipalities/partners_in_energy
This document summarizes the Xcel Energy “Partners in Energy” program, provides an example of the
implementation of the program in Louisville and lists key questions for Xcel if there is interest in pursuing
this program. The key takeaway is that “Partners in Energy” is a marketing tool for existing Xcel Energy
demand-side management and energy efficiency programs. The program offers consulting services to
design and implement an “Energy Action Plan” that is not as comprehensive as what has already been
undertaken by Boulder staff and community members. It is primarily intended for communities that have
not taken the steps Boulder has already taken and that do not have the staff resources or community
commitment available in Boulder.
Summary
•City and Xcel staff as well as community members participate in development of an “Energy
Action Plan” (EAP)
o The EAP establishes energy objectives and strategies designed to achieve community
goals
•Xcel Objective: “engage with the communities we serve by providing them with tools and
resources to develop and carry out their energy action plan”
•Cost: No cost to participate.
•Commitment: 24 months
o 6-month planning, 18-month implementation
Key Features
•“Partners in Energy” helps communities that have done little or no energy planning develop
goals and design a plan to achieve the goals
o The program promotes participation in existing Xcel energy efficiency and demand-side
management programs and offers Xcel resources that are also available to non-
“Partners in Energy” communities (e.g. seminars and training for trade groups, public
education fairs, website information)
o The program offers Xcel assistance in providing services the city already does (e.g.
energy benchmarking, GHG goals and tracking).
•The program does not offer Xcel funding. Xcel staff may be available to help identify external
funding sources for neighborhood-level (“micro-grant) and capital-intensive projects (“grant”),
an area in which the city has extensive experience.
•The program focuses on data sharing and analysis, via the Community Energy Report (already
available to all Colorado communities served by Xcel regardless of participation in Partners in
Energy) as well as quarterly updates on some programs (an improvement on the annual
Community Energy Report). Boulder has had significant challenges in validating the data
provided by Xcel through the Community Energy Report.
•Program materials on the Xcel website as well as a review of the City of Louisville Energy Action
Plan do not suggest that this program would contribute to Boulder’s current climate action
work.
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o There is also little indication of a focus on development of new products. Instead, a key
goal (described in program materials as “Early Wins!”) is education and awareness of
existing Xcel Energy programs.
• It is notable that participation in Partners in Energy was not discussed during the spring 2017
settlement negotiation.
• The images below describe Xcel’s motivation for creating Partners in Energy as well as how the
program can be used to engage with local government (as presented to ACEEE).
Louisville, CO experience
Website: http://www.louisvilleco.gov/residents/partners-in-energy-program
Energy Action Plan: http://www.louisvilleco.gov/home/showdocument?id=12811
• Xcel staff: product manager, area manager, account manager, program facilitators (Brendle
Group consultants)
• Priority strategies: grow green business recognition program, large commercial outreach,
increase residential participation in existing Xcel programs, integrate energy efficiency into city
facilities, share information and raise awareness of energy efficiency and renewable energy
programs and highlight successes from city facility participation in these programs.
• Emphasis on marketing existing Xcel programs. Quarterly reporting on participation in specific
Xcel DSM programs is an improvement over the summary of annual participation reported in
the Community Energy Report.
• “The team settled on a right-sized set of goals to compare progress against using best practices
from energy reduction programs and from conversations about how practical and how
aspirational the goals should be.” (page 14)
• Goals:
o Target reduction of a 1% energy consumption and commensurate emissions reductions
on an annual basis.
o Increase participation significantly in energy efficiency and renewable energy programs
across all sectors.
• The images below provide examples of the “playbook” for implementing Partners in Energy
goals as well a sample strategy focused on large customers.
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Questions for Xcel
• What sources of micro-grants and grants has Xcel identified and helped current or previous
Partners in Energy communities secure?
• What is an example of the neighborhood-level analysis and geographic identification that could
be provided (e.g. total customer energy usage and demand, participation in existing energy
efficiency and demand-side management programs, or targeting of specific non-participating
customers for existing or new programs based on an analysis of usage)?
• Why is the term “non-biased” included in the resource center description of energy efficiency
and renewable energy projects?
• How will the Partners in Energy program change if the Demand-Side Management Strategic
Issues application is approved and future energy efficiency and demand-side management
programs are geo-targeted?
Resources
• Xcel Energy Partners in Energy:
o Homepage
o How can we support your outreach?
o FAQ
o ACEEE presentation
o City of Red Wing, MN case study
o Application
• City of Louisville: Partners in Energy Website
• City of Louisville: Energy Action Plan
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City Council Study Session Page 75 of 76
Current Environment for RECs in Boulder
Boulder hydroelectric RECs
Description: The city sells RECs to Xcel and to Tri-State from its hydroelectric facilities. The
price of the REC is unknown since it is included in the total price per MWh paid for the energy
and capacity produced by each hydroelectric unit.
Status: The city retains 50% of the RECs from the hydroelectric units sold to Xcel but sells
100% of the RECs from the Boulder Canyon Hydro sold to Tri-State. Staff is working to
negotiate new contracts with Xcel to replace recently expired contracts for the four-small treated
water hydroelectric stations.
Solar Rewards
Description: The RESA requires Xcel to acquire 1.5% of sales by 2020 from ‘retail distributed
generation.’ As a result, Xcel offers Solar Rewards, an incentive payment based on the output of
customer rooftop solar installations. Customers receiving payments sell the RECs to Xcel.
Status: The city sells RECs via Solar Rewards from all solar installations installed on city
facilities. It is anticipated that most of the rooftop solar systems in Boulder also participate in the
Solar Rewards program.
Windsource
Description: Xcel sells RECs from existing wind farms that are not needed for RESA
compliance (i.e. Xcel has more wind on its system than is required by law and so Windsource
purchases do not add new renewables to the system).
Status: The current cost of Windsource is 1.5 cents per kWh. At this rate, Boulder would spend
approximately $20 million/year to purchase Windsource RECs equal to 100% of community
electricity usage
Renewable Connect
Description: Customers can subscribe to shares of a 50 MW solar farm for monthly, 5-year and
10-year periods. Depending on the cost of the solar and the future cost of fuel, customers may
pay a premium or receive a discount. RECs are retired on behalf of the customer so the
customers can claim the environmental benefit.
Status: A new, not-yet-available solar subscription product. Renewable Connect is targeted to
become available in mid- to late 2018.
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