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Agenda_2018_9_4_Meeting M ayor Suzanne Jones Council M e mbe rs Aaron Brockett Cindy Carlisle Jill Grano Lisa Morzel Mirabai Nagle Sam Weaver Bob Yates Mary Young Council Chambers 1777 Broadway Boulder, CO 80302 September 4, 2018 6:00 PM City M anage r Jane Brautigam City Attorne y Thomas A. Carr City Cle rk Lynnette Beck AGENDA FOR T HE REGULAR MEET ING OF T HE BOULDE R CIT Y COUNCIL I tems not on the Agenda are sometimes presented to Council in weekly I nformation Packets. Those packets can be accessed at www.bouldercolorado.gov/city-council. 1.Call to Order and Roll Call A.Declaration for P ollinator Appreciation M onth [presented by Council M ember Weaver] 5 min B.Presentation by Sheriff P elle regarding County Resolution 2018- 76 10 min 2.Open Comment 3.Consent Agenda A.Consideration of a motion to accept the August 28, 2018 Advance S tudy S ession Summary on the F ire M aster Plan B.Consideration of a motion to accept the August 28, 2018 Advance S tudy S ession Summary on the Community Benefits L and Use Code Change Project C.Consideration of a motion to adopt Resolution 1240 authorizing the City of Boulder to assign a portion of the City of Boulder ’s 2018 Private Activity Bond allocation to the Housing Authority of Boulder, D/B/A Boulder Housing Partners, for the purpose of financing the Canopy at Red Oak P ark development D.Consideration of a motion to adopt Resolution 1239 authorizing the City of Boulder to assign a portion of the City of Boulder ’s 2018 Private Activity Bond allocation to the Colorado Housing Finance Authority (C HFA) on behalf of Golden West Communities, for the purpose of financing the comprehensive rehabilitation of City Council Meeting Page 1 of 607 affordable housing located in Boulder E.T hird reading and consideration of a motion to adopt Ordinance 8264 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the city council to impose an oil and gas pollution tax at the rate of up to $6.90 per barrel of oil and up to $0.88 per thousand cubic feet of natural gas for oil or gas extracted within the Boulder city limits and expenditure of the full tax proceeds and any related earnings notwithstanding any state revenue or expenditure limitation; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details F.T hird reading and consideration of a motion to adopt Ordinance 8267 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the City of Boulder, without raising taxes, to keep all revenues from the 2016 voter- approved S ugar-Sweetened Beverage P roduct Distribution E xcise Tax and continue to collect the tax at the previously approved rate and spend all revenues collected for the health equity-related purposes previously approved by the voters, without refunding to distributors the amount that exceeded the revenue estimates approved by voters in 2016; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details G.T hird Reading Ordinances 8272, 8273 and 8274 related to the work of the Campaign F inance and Elections Working Group: 1. T hird reading and consideration of a motion to adopt Ordinance 8272 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending City Charter Sections 29, 38A, 38B, 39, 40, 44, 48, 54, 56, and 177 of the Boulder City Charter regarding the city’s initiative, referendum and recall processes; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. 2. T hird reading and consideration of a motion to adopt Ordinance 8273 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending S ections 39, 46, and 57 of the City Charter to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, compare the signatures on a petition to signatures with the election records of the Boulder County Clerk or the Secretary of S tate; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. 3. T hird reading and consideration of a motion to adopt Ordinance 8274 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the City Council Meeting Page 2 of 607 question of amending S ections 38, 45, and 56 of the City Charter to permit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall petitions; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details H.T hird reading and consideration of a motion to adopt Ordinance 8269 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the questions of adding a new S ection 84B to the Boulder City Charter to establish the Housing Advisory Board consisting of seven members; if the measure passes amending S ection 2-3-24, "Housing Advisory Board," B.R.C. 1981, to allow for seven members; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details I.T hird reading and consideration of a motion to adopt Ordinance 8270 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending S ection 78 of the Boulder City Charter to change the time for the planning department to submit its recommendations for public improvements from sixty days to thirty days before the public hearing to be consistent with the city’s budgeting process; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details J .T hird reading and consideration of a motion to adopt Ordinance 8271 (Attachment A) submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder City Charter to allow council to set the number of any new advisory commission as five or seven when forming the commission, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details; or in the alternative, T hird reading and consideration of a motion to adopt by emergency Ordinance 8271 (Attachment B) submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending S ection 130 of the Boulder City Charter to allow council to set the number of any new advisory commission as five or seven when forming the commission, to permit a board established in 2018 to consist of seven members, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details City Council Meeting Page 3 of 607 K.Consideration of the following items related to two properties in Crestview E ast (case number L UR2018-00044): 1. Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8288 vacating and authorizing the city manager to execute a deed of vacation for a 10-foot wide portion of Vine Avenue right-of-way located adjacent to the property at 2100 Violet Avenue 2. Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8289 vacating and authorizing the city manager to execute a deed of vacation for a portion of Vine Avenue right-of-way located adjacent to the property at 1917 Upland Avenue L .S econd reading and consideration of a motion to adopt Ordinance 8281 approving and authorizing the issuance of a Boulder M unicipal P roperty Authority L ease Purchase Revenue Note, S eries 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property, and approving and authorizing the assignment of the purchase contract to B M PA, the execution and delivery of a Lease P urchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to J efferson County; and setting forth related details and consideration of a motion to adjourn from the Boulder City Council and convene as the Boulder M unicipal Property Authority Board of Directors. M .Consideration of a motion to adopt Resolution 150 to approve and authorize the issuance of a Boulder M unicipal P roperty Authority Lease P urchase Revenue Carry-Back Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property and a Deed of T rust for the benefit of the registered owner of the note, and to approve and accept the assignment of the purchase contract to Boulder M unicipal P roperty Authority, the execution and delivery of a L ease P urchase Agreement and the optional execution of a S ublease of a 50 percent undivided interest in the property to J efferson County; and setting forth related details and consideration of a motion to adjourn from the Boulder M unicipal Property Authority Board of Directors and reconvene as the Boulder City Council. 4.Call-Up Check-In A.Call-Up: City M anager's Final Plan regarding petition for creation of new Neighborhood Parking Permit Zone for P ark East S quare; 1100-4300 M onroe Drive B.Call-Up: S ite Review Amendment; 5100 Reservoir Road 5.Public Hearings A.Consideration of a motion to accept the Library M aster Plan and Amend the Boulder Valley Comprehensive P lan to Update the L ibrary M aster P lan Summary 30 min City Council Meeting Page 4 of 607 B.Consideration of the following items related to the Outdoor L ighting Regulations and the Building P erformance Ordinance (B P O): 1. Second reading and consideration of a motion to adopt Ordinance 8258 amending Title 9, “Land Use Code,” to modify the outdoor lighting regulations to extend the amortization period and include the addition of new necessary provisions related to modern lighting and exceptions; 2. Second reading and consideration of a motion to adopt an alternative Ordinance 8280 amending Title 9, “Land Use Code,” to remove the amortization provisions and requiring full compliance with the outdoor lighting regulations by Nov. 16, 2018 and include the addition of new necessary provisions related to modern lighting and exceptions; 3. S econd reading and consideration of a motion to adopt Ordinance 8279 amending Chapter 10-7.7, “Commercial and Industrial E nergy Efficiency,” to clarify and amend regulation of lighting requirements and exemptions; 4. Second reading and consideration of a motion to adopt Ordinance 8283 amending Chapter 10-3, “Rental Licenses,” B.R.C. 1981 and S ection 10-1-1, “Definitions,” and 10-12-19, “M obile Home P ark Streets and Walkways,” B.R.C. 1981, to ensure compliance of properties with rental licenses with outdoor lighting standards and setting forth related details; and 5. A draft L ighting Enforcement P lan to be implemented at time of amortization expiration 90 min 6.M atters from the City M anager A.Check-in with council for direction on whether to finalize a J oint Development Agreement related to the construction of a public parking garage project in partnership with T he Hill Hotel P artners, L L C on behalf of the City of Boulder and the University Hill General Improvement District on property located between Pleasant Street and University Avenue, west of Broadway 90 min 7.M atters from the City Attorney 8.M atters from M ayor and M embers of Council A.Call-Up: City M anager's F inal P lan regarding petition for creation of new Neighborhood P arking P ermit Zone for Park E ast Square; 1100-4300 M onroe Drive B.Call-Up: Site Review Amendment to construct a new 7,830 square- foot Boulder Reservoir Visitor Services Center to replace the existing 7,424 square-foot building, including locker rooms, concessions, and staff offices in the P (P ublic) zoning district at 5100 Reservoir Road. Due to prior grade modifications, the proposal includes a height modification request (L UR2018-00013). Amends Height Review #H-83-15 C.Consideration of a motion to approve the order of the City of Boulder ballot measures in the 2018 M unicipal Coordinated Election 5 min City Council Meeting Page 5 of 607 D.Appointments to the Racial Equity S ubcommittee 5 min E.Appointments for Council Liaisons for each of the new sister cities; Ramat HaNegev, Israel and Kathmandu, Nepal 5 min 9.Discussion Items 10.Debrief 11.Adjournment 4:50 hours This meeting can be viewed at www.bouldercolorado.gov/city-council. Meetings are aired live on Municipal Channel 8 and the city's website and are re-cablecast at 6 p.m. Wednesdays and 11 a.m. Fridays in the two weeks following a regular council meeting. Boulder 8 TV (Comcast channels 8 and 880) is now providing closed captioning for all live meetings that are aired on the channels. The closed captioning service operates in the same manner as similar services offered by broadcast channels, allowing viewers to turn the closed captioning on or off with the television remote control. Closed captioning also is available on the live HD stream on Boulder Channel8.com. To activate the captioning service for the live stream, the "C C" button (which is located at the bottom of the video player) will be illuminated and available whenever the channel is providing captioning services. The council chambers is equipped with a T-Coil assisted listening loop and portable assisted listening devices. I ndividuals with hearing or speech loss may contact us using Relay Colorado at 711 or 1-800-659-3656. Anyone requiring special packet preparation such as Braille, large print, or tape recorded versions may contact the City Clerk's Office at 303-441-4222, 8 a.m. - 5 p.m. Monday through Friday. Please request special packet preparation no later than 48 hours prior to the meeting. I f you need Spanish interpretation or other language-related assistance for this meeting, please call (303) 441-1905 at least three business days prior to the meeting. Si usted necesita interpretacion o cualquier otra ayuda con relacion al idioma para esta junta, por favor comuniquese al (303) 441-1905 por lo menos 3 negocios dias antes de la junta. Send electronic presentations to email address: CityClerkStaff@bouldercolorado.gov no later than 2 p.m. the day of the meeting. City Council Meeting Page 6 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E Declaration for Pollinator Appreciation Month P RI MARY STAF F C ON TAC T Rella Abernathy, Integrated Pest Management Coordinator RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Declaration for Pollinator Appreciation Month B RI E F H I STO RY O F I T E M T his is an annual month-long series of events that is launched by the mayor or another council member reading the proclamation AT TAC H ME N T S: Description P ollinator Appreciation Declaration City Council Meeting Page 7 of 607 City Council Meeting Page 8 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E C onsideration of a motion to approve the August 28, 2018 Advance Study Session Summary on the Fire Master Plan P RI MARY STAF F C ON TAC T Holger Durre, Deputy Fire Chief RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Motion to approve the August 28, 2018 Advance Study Session Summary on the Fire Master Plan. I S T HI S I T E M/P RO J E C T O N T HE C O U N C I L WORK P L AN? N/A H AS T HI S I T E M/P RO J E C T B E E N B U D GE T E D? N/A WHAT P RI MARY SU STAI N AB I L I T Y F RAME W O RK OU T C OME I S B E I N G SU P P O RT E D? Safe C ommunity AT TAC H ME N T S: Description Attachment City Council Meeting Page 9 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Consideration of a Motion to accept the August 28, 2018 Advance Study Session Summary on the Fire Master Plan. PRESENTER/S Jane S. Brautigam, City Manager Mike Calderazzo, Fire Chief Holger Durre, Deputy Fire Chief Jeff Long, Deputy Fire Chief Dr. Shannon Sovndal, Medical Director BRIEF SUMMARY OF STUDY SESSION TOPIC The purpose of the study session was for staff to provide council with an update on the Fire-Rescue master plan. The master plan is on target for presentation and acceptance in the first quarter of 2019. The master plan will address current and emerging risks faced by the community with options for mitigating those risks including community risk reduction through: education, prevention and community partnerships; optimizing deployment practices; and exploration of fire-based EMS. DIRECTION •Council supported staff in its continued master planning efforts that focus on community risk reduction, optimized deployment and fire-based EMS. •Council directed staff to incorporate resiliency as an area of focus in master planning efforts. •Council supported the continuing exploration of fire-based EMS with an interest in the financial feasibility study in progress City Council Meeting Page 10 of 607 Suggested Motion Language: Staff requests council consideration of this matter and action in the form of the following motion: Motion to accept the August 28, 2018 Fire Master Plan Advance Study Session Summary. Note: This Advance Summary does not take the place of the full Study Session Summary that will include more detail on individual Council Member comments and questions. City Council Meeting Page 11 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E C onsideration of amotion to accept the August 28, 2018 Advance Study Session Summary on the C ommunity Benefits Land Use Code Change Project P RI MARY STAF F C ON TAC T Phil Kleisler, Planner II RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E C onsideration of a motion to accept the August 28, 2018 Advance Study Session Summary on the Community Benefits Land Use C ode C hange Project AT TAC H ME N T S: Description Memo City Council Meeting Page 12 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Consideration of a Motion to accept the August 28, 2018 Advance Study Session Summary on the Community Benefits Land Use Code Change Project. PRESENTER/S Jane S. Brautigam, City Manager Jim Robertson, Director for Planning + Sustainability (P+S) Charles Ferro, Development Review Manager/Interim Comprehensive Planning Manager (P+S) Karl Guiler, Senior Planner/Code Amendment Specialist (P+S) Phil Kleisler, Planner II (P+S) BRIEF SUMMARY OF STUDY SESSION TOPIC The purpose of this study session was to share information with and receive feedback from Council about the Community Benefits project. The Community Benefits project is intended to address under what circumstances developers or property owners may request increased building height, density and intensity beyond what is permitted by underlying zoning and, in such cases, what community benefits would be required as part of a development proposal. These programs identify the specific amount and type of community benefit required with specific development requests. Boulder’s community benefits program, if adopted, would provide a menu of options – like affordable housing, affordable commercial space, community gathering space and public art – to be provided as part of the project. The specific amount of required benefits would be proportional to the value of the bonus amount requested. DIRECTION Staff posed the following questions for City Council. Summaries of the direction to staff are provided under each: Item 3B - Advanced SS Summary regarding Community Benefit, Site Review and Land Use Code Change Priorities City Council Meeting Page 13 of 607 1.Does City Council agree with the proposed project features eligible for the community benefits program (e.g. height, FAR, density, rezonings)? •There was agreement that building height and floor area should be triggers, but differing opinions on whether to make density over a zone maximum a trigger, since some council members felt that we should be encouraging smaller units potentially at a higher density. Others were concerned that density means more of a strain on the community in terms of traffic etc. •Address and simplify the baselines for how density is calculated with respect to right-of-way widths and lot size in line with Planning Board suggestions •There were suggestions to remove the open space per dwelling unit standards since it is more difficult to calculate allowable density 2.Does City Council agree with the preliminary list of community benefits? •In general, the council felt that the list of identified community benefits was accurate and that all of the identified benefits should move forward, not just a focus on a few as an interim measure •Smaller units should be encouraged, and mobility options separate from the automobile should be incentivized •Satellite parking should be investigated •Incentives for workers who work in Boulder should be considered •Consider rent control on commercial spaces •Enhanced design should be required for all projects •Enhanced design should incentivize architectural features like belfries and cupolas •There were concerns expressed about the possibility of benefits not being permanent and what the penalties might be •There should be contingency options like in-lieu payments that would only apply if a benefit ceased to operate but applicants should not be allowed to pursue in-lieu fees only as an alternative to the benefits •Any cash penalties or in lieu fees should fund an account that is related to the community benefit not provided •Density should be mitigated by more amenities like publicly accessible open space •Landmarking should be added to the list to incent the landmarking of buildings that otherwise would not be landmarked. 747 14th Street was cited as an example. •Net zero buildings should be required. •Art spaces, like performance spaces, venues, art sales spaces and live/work spaces, are important and should be prioritized over just art installations, which are a matter of taste Item 3B - Advanced SS Summary regarding Community Benefit, Site Review and Land Use Code Change Priorities City Council Meeting Page 14 of 607 •Several council members liked the Austin example (e.g., flow chart) for process and approach •There should be a requirement for a minimum number of dwelling units for permanently affordable requirements •Residential uses in industrial zones should be part of the scope of the community benefit project •Social services should be one of the main priorities of community benefit •There were some concerns expressed about how to make the community benefits equal to one another and commensurate with any bonus 3.Should city staff analyze and engage the community about adding sites to Appendix J (areas eligible for height modifications)? •There was general consensus that Appendix J should not change until and if there is a strong community benefit program proposed. Now is not the time to determine whether changes should be made •The decision to change Appendix J would occur only after the community benefits project is completed and before the expiration date of the height provisions on May 31, 2020 •The only exception to this direction was looking at Diagonal Plaza as an opportunity site as part of the community benefit project •Council members thought that it would be appropriate to consider changes to Appendix J as a result of subarea planning. 4.Does City Council agree with staff’s approach to community engagement? •The council expressed support of a process committee including City Council and Planning Board members to advise on the progress of code changes •The committee should be modeled on the BVCP and Open Space committees •There was support for the proposed community engagement approach •Staff should work with developers to make sure that whatever solution is proposed is realistic and feasible from a development perspective •Staff should look at other methods of outreach like working with Channel 8, social media or attending events like school fairs •When doing drop in events, make sure that it is in areas that are open to a wide array of people of different background and incomes Suggested Motion Language: Staff requests council consideration of this matter and action in the form of the following motion: Motion to accept the August 28, 2018 Community Benefits Land Use Code Change Project Advance Study Session Summary. Item 3B - Advanced SS Summary regarding Community Benefit, Site Review and Land Use Code Change Priorities City Council Meeting Page 15 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E C onsideration of a Motion to Approve Resolution 1240 authorizing the C ity of Boulder to delegate to the Housing Authority of Boulder, D/B/A Boulder Housing Partners, its powers to issue revenue obligations using the 2018 private activity bond volume cap allocation for the purpose of financing the Red Oak Park II Development P RI MARY STAF F C ON TAC T Kate Masingale, Funding Administrator RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E C onsideration of a Motion to Approve Resolution 1240 authorizing the C ity of Boulder to delegate to the Housing Authority of Boulder, D/B/A Boulder Housing Partners, its powers to issue revenue obligations using the 2018 private activity bond volume cap allocation for the purpose of financing the Red Oak Park II Development B RI E F H I STO RY O F I T E M T he Housing Authority of Boulder, D/B/A Boulder Housing Partners (BHP) is seeking the C ity of Boulder's authorization to delegate to BHP the city’s power to issue C olorado Private Activity Bond Program (PA B). Once delegated, BHP will issue the city’s 2018 private activity bond volume cap in the amount of $4,000,000 to support affordable housing activities in the city. AT TAC H ME N T S: Description Memo and attachments City Council Meeting Page 16 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE: Consideration of a motion to adopt Resolution 1240 authorizing the City of Boulder to assign a portion of the City of Boulder’s 2018 Private Activity Bond allocation to the Housing Authority of Boulder, D/B/A Boulder Housing Partners, for the purpose of financing the Canopy at Red Oak Park development. PRESENTER/S: Jane S. Brautigam, City Manager Kurt Firnhaber, Director, Housing and Human Services Erin Poe, Deputy City Attorney Kristin Hyser, Community Investment Program Manager Kate Masingale, Funding Administrator EXECUTIVE SUMMARY The Housing Authority of Boulder, D/B/A Boulder Housing Partners (BHP) is seeking the City of Boulder's authorization to issue private activity bonds through the Colorado Private Activity Bond Program (PAB) to finance the development of Canopy at Red Oak Park. STAFF RECOMMENDATION Staff recommends City Council authorize the execution of the Resolution No. 1240, and related documents. The city’s delegation of its authority to BHP to allocate a portion of the city’s 2018 PAB volume cap which will provide BHP a principal amount not to exceed $4,000,000 for the purpose of financing the Canopy at Red Oak Park development. Suggested Motion Language: Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt Resolution 1240 authorizing the City of Boulder to delegate to the Housing Authority of Boulder, Colorado, D/B/A Boulder Housing Partners its powers to issue revenue obligations using a portion of the 2018 private activity bond volume cap allocation for the purpose of the financing of the Canopy at Red Oak Park development. Item 3C - Consideration of a motion to adopt Resolution 1240 City Council Meeting Page 17 of 607 COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS •Economic – Issuance or delegation of PAB is not a financial obligation of the municipality and no tax money or other municipal revenues are pledged for their retirement. •Environmental –The property supported through the use of PAB has undergone environmental review in accordance with 24 CFR Part 58 evaluating any negative environmental impacts on the users of the property and surrounding properties. •Social – The use of PAB in development financing reduces borrowing costs allowing the affordable housing developer to provide more and higher-quality affordable rental housing serving low income residents of Boulder. BACKGROUND Private Activity Bonds (PAB) are tax-exempt bonds that can be issued for specific purposes including the financing of developing residential multifamily rental projects. Annually the federal government grants allocations of bonding authority to each state. Through the state of Colorado PAB program municipalities receive an annual allocation of PAB (referred to has PAB capacity or cap) that can be issued to an eligible project, assigned to another issuer, carried-forward for a future project or relinquished to the statewide balance. A request for proposals seeking tax-exempt bond eligible projects was released in the summer of 2018. The city received two proposals, one from BHP and one from Golden West Communities. BHP is seeking the city’s authority to issue $4,000,000 of the city’s PAB cap to support the Canopy at Red Oak Park development. In separate memorandum, City Council is requested to consider approval the assignment of the remaining PAB cap to the Colorado Housing Finance Authority (CHFA) on behalf of Golden West Communities. Assignment of the city’s authority to issue its PAB volume cap to BHP requires approval by the highest elected executive official or the legislative body of the jurisdiction where the project is located. Therefore, BHP is requesting approval by the City of Boulder City Council to assign a portion the city’s PAB cap to the Canopy at Red Oak Park development. The City of Boulder’s authority to issue or delegate its PAB volume cap allocation does not commit any municipal revenues or create a direct obligation for the city to repay investors buying the bonds. The project benefiting from the purchase of the bonds pays back the loan to investors with interest. ANALYSIS Following the city’s assignment of its 2018 volume cap allocations to not exceed $4,000,000, BHP will take the necessary action to issue the PAB cap to support the Canopy at Red Oak Park. The bond proceeds will support their development providing 41 new units of permanently affordable housing. If the funds are not utilized for the intended, the assignment agreement with BHP will allow them to use the bonds for an alternative city-approved project as long as it shares the same purpose of Item 3C - Consideration of a motion to adopt Resolution 1240 City Council Meeting Page 18 of 607 creating multifamily housing. If in the event the PABs are not utilized, the bonds will expire within three years of being carried forward with no penalty to the municipality or its partners. ATTACHMENTS Attachment A: Proposed Resolution No. 1240 Attachment B: Assignment of Allocation Item 3C - Consideration of a motion to adopt Resolution 1240 City Council Meeting Page 19 of 607 ATTACHMENT A RESOLUTION NO. 1240 APPROVING THE ASSIGNMENT TO THE HOUSING AUTHORITY OF THE CITY OF BOULDER, COLORADO, D/B/A BOULDER HOUSING PARTNERS OF $4,000,000 OF THE CITY OF BOULDER, COLORADO’S 2018 PRIVATE ACTIVITY BOND VOLUME CAP ALLOCATION FROM THE STATE CEILING FOR PRIVATE ACTIVITY BONDS; AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN ASSIGNMENT AND OTHER DOCUMENTS IN CONNECTION THEREWITH. WHEREAS, the City of Boulder, Colorado (the “City”) is authorized by the County and Municipality Development Revenue Bond Act, constituting Article 3 of Title 29, Colorado Revised Statutes, as amended (the “Act”), and the Supplemental Public Securities Act, constituting Part 2 of Article 57 of Title 11, Colorado Revised Statutes, as amended (the “Supplemental Act”) and its home rule charter (the “Charter”), to finance projects as defined in the Act, including residential facilities for low- and middle-income persons and families; and WHEREAS, the City has been awarded on January 1, 2018 $5,658,923 (the “2018 Allocation”) of the bond ceiling for the State of Colorado (the “State”) and its issuing authorities pursuant to the Colorado Private Activity Bond Ceiling Allocation Act, constituting Part 17 of Article 32 of Title 24, Colorado Revised Statutes, as amended (the “Allocation Act”), for use in the issuance of private activity bonds to finance projects under the Act; and WHEREAS, the Allocation Act provides for the assignment of bond allocations between “issuing authorities” (as defined in the Act) of the State; and WHEREAS, the City desires to assign and transfer to The Housing Authority of the City of Boulder, Colorado, d/b/a Boulder Housing Partners (the “Assignee”) $4,000,000 of the City’s 2018 Allocation (the “Assigned Allocation”), which the City and the Assignee will commit and reserve for the issuance of such private activity bonds, to finance “projects” under the Act; and WHEREAS, it is necessary to evidence such assignment and transfer and the acceptance thereof by the execution and delivery by the City of an Assignment, dated as of September 4, 2018 (the “Assignment”), by and between the City and the Assignee; and WHEREAS, the Assignee proposes to issue its housing revenue bonds pursuant to the Housing Authorities Law, Part 2 of Article 4 of Title 29, Colorado Revised Statutes, as amended (the “Housing Authority Act”) and the Supplemental Act (the “Bonds”) to finance “projects” under the Act (the “Project”); NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO THAT: Item 3C - Consideration of a motion to adopt Resolution 1240 City Council Meeting Page 20 of 607 Section 1. In order to finance the Project, the City hereby (i) assigns and transfers to the Assignee an amount equal to all of the City’s 2018 Allocation and (ii) approves, and authorizes and directs the City Manager of the City to sign and deliver and the City Clerk to attest and deliver, the Assignment in substantially the form presented to the City Council. A copy of the proposed Assignment is on file in the office of the City Clerk and is available for inspection by the public. Section 2. The City Manager is hereby authorized and directed to execute and deliver and the City Clerk is hereby authorized and directed to attest and deliver such other agreements and certificates and to take such other actions as may be necessary or convenient to carry out and give effect to the Assignment and this Resolution. Section 3. All actions not inconsistent with the provisions of this Resolution heretofore taken by the City Council and the officers of the City directed toward the assignment of the 2018 Allocation and the authorization of the Assignment hereby are ratified, approved, and confirmed. Section 4. Nothing contained in this Resolution or the Assignment shall constitute a debt, indebtedness or multiple-fiscal year direct or indirect debt or other financial obligation of the City within the meaning of the Constitution or statutes of the State or the home rule charter of any political subdivision thereof, nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 5. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of any such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. Section 6. This Resolution shall be in full force and effect upon its passage and approval. Item 3C - Consideration of a motion to adopt Resolution 1240 City Council Meeting Page 21 of 607 INTRODUCED, READ, PASSED AND ADOPTED this___ day of September, 2018. CITY OF BOULDER, COLORADO Mayor [SEAL] ATTEST: City Clerk Item 3C - Consideration of a motion to adopt Resolution 1240 City Council Meeting Page 22 of 607 ATTACHMENT B ASSIGNMENT THIS ASSIGNMENT (the “Assignment”), dated this_ day of September, 2018, is by and between the CITY OF BOULDER, COLORADO, a home rule city, municipal corporation and political subdivision of the State of Colorado (the “Assignor”), and THE HOUSING AUTHORITY OF THE CITY OF BOULDER, COLORADO, D/B/A BOULDER HOUSING PARTNERS, a body corporate and politic (the “Assignee”); W I T N E S S E T H : WHEREAS, the Assignor has been awarded $5,658,923 (the “2018 Allocation”) of private activity bond volume cap allocation for the State of Colorado (the “State”) and its issuing authorities (the “State Ceiling”) computed under Section 146(d) of the Internal Revenue Code of 1986, as amended (the “Code”), and under the Colorado Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Colorado Revised Statutes, as amended (the “Allocation Act”), for use in the issuance of private activity bonds; and WHEREAS, subject to the terms and conditions set forth herein, the Assignor desires to assign to the Assignee, and the Assignee desires to accept $4,000,000 of the Assignor’s 2018 Allocation (the “Assigned Allocation”), which the Assignor has committed and reserved for the issuance of such private activity bonds; and WHEREAS, the private activity bonds will be issued by the Assignee pursuant to the Housing Authorities Law, Part 2 of Article 4 of Title 29, Colorado Revised Statutes, as amended (the “Housing Authority Act”), and the Supplemental Public Securities Act, Part 2 of Article 57 of Title 11, Colorado Revised Statutes, as amended (the “Supplemental Act”), and such bonds will be used only for “projects” as described in the Act; and NOW THEREFORE, in exchange for the agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: Section 1. The Assignor hereby assigns and transfers to the Assignee the Assigned Allocation. The Assignee agrees to use the Assigned Allocation only for “projects” as described in the Act. In addition, the Assignor hereby consents to the election by the Assignee, if the Assignee in its discretion so decides, to treat the Assigned Allocation as an allocation for a project with a carryforward purpose, thus avoiding reversion of such Assigned Allocation to the statewide balance under the Allocation Act, or to assign the Assigned Allocation or a portion thereof to another Assignee. Section 2. The Assignor represents that it has received no monetary consideration for the assignment set forth above. Section 3. The Assignee hereby accepts the assignment of the Assigned Allocation from the State Ceiling described above, subject to the terms and conditions contained herein. Item 3C - Consideration of a motion to adopt Resolution 1240 City Council Meeting Page 23 of 607 Section 4. The Assignor and Assignee each agree that it will take such further action and adopt such further proceedings as may be required to implement the terms of this Agreement, including but not limited to the Assignee filing, an IRS Form 8328 “Carryforward Election of Unused Private Activity Bond Volume Cap” with respect to the Assigned Allocation. Section 5. This Assignment is effective upon execution and is irrevocable. IN WITNESS WHEREOF, the Assignor and the Assignee have caused this instrument to be executed to be effective as of the date and year first written above. CITY OF BOULDER, COLORADO, as Assignor By: Title: City Manager [SEAL] ATTEST: City Clerk on behalf of the Director of Finance and Record APPROVED AS TO FORM: City Attorney’s Office Date: _________________________ THE HOUSING AUTHORITY OF THE CITY OF BOULDER, COLORADO, D/B/A/ BOULDER HOUSING PARTNERS, as Assignee By: Title: Executive Director Item 3C - Consideration of a motion to adopt Resolution 1240 City Council Meeting Page 24 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E C onsideration of a motion to adopt Resolution 1239 authorizing the C ity of Boulder to assign the C ity of Boulder’s 2018 Private Activity Bond allocation to the Colorado Housing Finance Authority (C HFA) on behalf of Golden West Communities, for the purpose of financing the comprehensive rehabilitation of 306 units of affordable housing located in Boulder P RI MARY STAF F C ON TAC T Kate Masingale, Funding Administrator RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E C onsideration of a motion to adopt Resolution 1239 authorizing the C ity of Boulder to assign the C ity of Boulder’s 2018 Private Activity Bond allocation to the Colorado Housing Finance Authority (C HFA) on behalf of Golden West Communities, for the purpose of financing the comprehensive rehabilitation of 306 units of affordable housing located in Boulder B RI E F H I STO RY O F I T E M C olorado Housing Finance Authority (C HFA) is seeking the C ity of Boulder's authorization to assign the city’s power to issue Colorado Private Activity Bond Program (PA B). Once assigned, C HFA will provide the private activity bond volume cap allocations to Golden West C ommunities for the purpose of financing the comprehensive rehabilitation of 306 units of affordable housing located in Boulder AT TAC H ME N T S: Description Memo and attachments City Council Meeting Page 25 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE: Consideration of a motion to adopt Resolution 1239 authorizing the City of Boulder to assign a portion of the City of Boulder’s 2018 Private Activity Bond allocation to the Colorado Housing Finance Authority (CHFA) on behalf of Golden West Communities, for the purpose of financing the comprehensive rehabilitation of affordable housing located in Boulder. PRESENTER/S: Jane S. Brautigam, City Manager Kurt Firnhaber, Director, Housing and Human Services Erin Poe, Deputy City Attorney Kristin Hyser, Community Investment Program Manager Kate Masingale, Funding Administrator EXECUTIVE SUMMARY Colorado Housing Finance Authority (CHFA) is seeking the City of Boulder's authorization to assign the city’s power to issue Colorado Private Activity Bond Program (PAB). Once assigned, CHFA will provide the private activity bond volume cap allocations to Golden West Communities for the purpose of financing the comprehensive rehabilitation of 306 units of affordable housing located in Boulder. STAFF RECOMMENDATION Staff recommends City Council authorize the execution of the Resolution No. 1239, and related documents. The city’s delegation of its authority to CHFA to allocate a portion of the city’s 2018 PAB volume cap will provide Golden West Communities a principal amount not to exceed $1,658,923 for the purpose of financing capital improvements for multifamily housing rental units owned and managed by Golden West Communities. Suggested Motion Language: Staff requests council consideration of this matter and action in the form of the following motion: Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 26 of 607 Motion to adopt a Resolution 1239 authorizing the City of Boulder to delegate to Colorado Housing Finance Authority (CHFA) on behalf of Golden West Communities, its powers to issue revenue obligations using a portion of the 2018 private activity bond volume cap allocation for the purpose of a renovation effort. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS • Economic – Issuance or delegation of PAB is not a financial obligation of the municipality and no tax money or other municipal revenues are pledged for their retirement. • Environmental –The property supported through the use of PAB has undergone environmental review in accordance with 24 CFR Part 58 evaluating any negative environmental impacts on the users of the property and surrounding properties. • Social – The use of PAB in development financing reduces borrowing costs allowing the owner of the affordable housing to maintain the long term sustainability and to provide higher-quality affordable rental housing serving low income residents of Boulder. BACKGROUND Private Activity Bonds (PAB) are tax-exempt bonds that can be issued for specific purposes including the financing to support improvements to residential multifamily rental projects. Annually the federal government grants allocations of bonding authority to each state. Through the state of Colorado PAB program municipalities receive an annual allocation of PAB (referred to as PAB capacity or cap) that can be issued to an eligible project, assigned to another issuer, carried-forward for a future project or relinquished to the statewide balance. The statewide balance is available to local governments or state authorities (housing authorities) that require loan funding at a fixed rate repayable over a long period of time to finance a capital project. A request for proposals seeking tax-exempt bond eligible projects was released in the summer of 2018. The city received two proposals, one from BHP and one from Golden West Communities. Golden West Communities is seeking the assignment of the $1,658,923 of the city’s PAB cap to the statewide balance to be designated for use by Golden West Communities. The PABs needed by Golden West Communities for the designated renovation exceed the amount CHFA has available to Golden West Communities. The assignment of the city’s PAB cap will fill the gap needed for the identified renovation project. In a separate future memorandum, City Council will be requested to consider approval to provide the authority to BHP to issue the city’s remaining PAB cap to support the development of the Canopy at Red Oak Park. Assignment of the city’s authority to issue its PAB volume cap to CHFA requires approval by the highest elected executive official or the legislative body of the jurisdiction where the project is located. Therefore, CHFA is requesting approval by the City of Boulder City Council to assign the city’s authority to the statewide balance enabling CHFA to issue revenue obligations using the 2018 PAB volume cap for Golden West Communities’ renovation effort. The City of Boulder’s authority to issue or delegate its PAB volume cap allocation does not commit any municipal revenues or create a direct obligation for the city to repay investors buying the Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 27 of 607 bonds. The project benefiting from the purchase of the bonds pays back the loan to investors with interest. ANALYSIS Following the city’s assignment of its authority to CHFA to issue the 2018 volume cap allocations to not exceed $1,658,923, CHFA will take the necessary action to issue the PAB cap to support the Golden West Communities renovation efforts. The bond proceeds will support their renovation effort and capital improvements maintaining 306 units of affordable housing. If the funds are not utilized for the intended use, the assignment agreement with CHFA will allow them to use the bonds for an alternative project as long as it shares the same purpose of supporting affordable multifamily housing. If in the event the PABs are not utilized, the bonds will expire within three years of being carried forward with no penalty to the municipality or its partners. Attachments: Attachment A: Proposed Resolution 1239 Attachment B: Assignment of Allocation Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 28 of 607 Attachment A RESOLUTION NO. 1239 AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND FINANCE AUTHORITY OF A PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY OF BOULDER, COLORADO PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT WHEREAS, the City of Boulder, Colorado (the “City of Boulder”) is authorized and empowered under the laws of the State of Colorado (the "State") to issue revenue bonds for the purpose of financing qualified residential rental projects for low- and moderate-income persons and families; and WHEREAS, the City of Boulder is authorized and empowered under the laws of the State of Colorado (the "State") to issue revenue bonds for the purpose of providing single-family mortgage loans to low- and moderate-income persons and families; and WHEREAS, the Internal Revenue Code of 1986, as amended (the "Code"), restricts the amount of tax-exempt bonds ("Private Activity Bonds") which may be issued in the State to provide such mortgage loans and for certain other purposes; and WHEREAS, pursuant to the Code, the Colorado legislature adopted the Colorado Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Colorado Revised Statutes (the "Allocation Act"), providing for the allocation of the State Ceiling among the Colorado Housing and Finance Authority (the "Authority") and other governmental units in the State, and further providing for the assignment of such allocations from such other governmental units to the Authority; and WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act, the City of Boulder has an allocation of the 2018 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2018 (the "2018 Allocation"); and WHEREAS, the City of Boulder has determined that, in order to increase the availability of adequate affordable housing for low- and moderate-income persons and families within the City of Boulder and elsewhere in the State, it is necessary or desirable to provide for the utilization of all or a portion of the 2018 Allocation; and WHEREAS, the City of Boulder has determined that the 2018 Allocation, or a portion thereof, can be utilized most efficiently by assigning it to the Authority to issue Private Activity Bonds for the purpose of financing one or more multi-family rental housing projects for low- and moderate-income persons and families or to issue Private Activity Bonds for the purpose of providing single-family mortgage loans to low- and moderate-income persons and families ("Revenue Bonds") or for the issuance of mortgage credit certificates. The Authority will use its best efforts to issue bonds in an amount up to the Assigned Cap (as defined below) to finance a portion of the costs of a qualified residential rental project in the City of Boulder, Colorado and known as Golden West Senior Living (the “Project”); provided such project receives tax credits Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 29 of 607 and the financing for the Project, in CHFA’s sole judgement is likely to close prior to December 31, 2018; and WHEREAS, the City Council of the City of Boulder (“City Council”) has determined to assign $1,658,923 of its 2018 Allocation (the “Assigned Cap”) to the Authority, which assignment is to be evidenced by an Assignment of Allocation between the City of Boulder and the Authority (the "Assignment of Allocation"); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Boulder as follows: 1. The assignment to the Authority of $1,658,923 of the City of Boulder’s 2018 Allocation be and hereby is approved. 2. The form and substance of the Assignment of Allocation be and hereby are approved; provided, however, that the City Council be and hereby are authorized to make such technical variations, additions or deletions in or to such Assignment of Allocation as they shall deem necessary or appropriate and not inconsistent with the approval thereof by this resolution. 3. The City Council of the City of Boulder be and hereby are authorized to execute and deliver the Assignment of Allocation on behalf of the City of Boulder and to take such other steps or actions as may be necessary, useful or convenient to effect the aforesaid assignment in accordance with the intent of this resolution. 4. If any section, paragraph, clause, or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the remaining provisions of this resolution. 5. This resolution shall be in full force and effect upon its passage and approval. Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 30 of 607 INTRODUCED, READ, PASSED AND ADOPTED this___ day of September, 2018. CITY OF BOULDER, COLORADO Mayor [SEAL] ATTEST: City Clerk Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 31 of 607 Attachment B Assignment Assignment of Allocation (the "Assignment"), dated this ____________________day of September, 2018, is between the City of Boulder, Colorado (the "Assignor" or the "Jurisdiction") and Colorado Housing and Finance Authority (the "Assignee"). WITNESSETH: WHEREAS, the Assignor and the Assignee are authorized and empowered under the laws of the State of Colorado (the "State") to issue revenue bonds for the purpose of financing qualified residential rental projects for low- and moderate-income persons and families; and WHEREAS, the Assignor and the Assignee are authorized and empowered under the laws of the State of Colorado (the "State") to issue revenue bonds for the purpose of providing single-family mortgage loans to low- and moderate-income persons and families; and WHEREAS, the Internal Revenue Code of 1986, as amended (the "Code"), restricts the amount of tax-exempt bonds ("Private Activity Bonds") which may be issued in the State to finance such projects and for certain other purposes (the "State Ceiling"); and WHEREAS, pursuant to the Code, the Colorado legislature adopted the Colorado Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Colorado Revised Statutes (the "Allocation Act"), providing for the allocation of the State Ceiling among the Assignee and other governmental units in the State, and further providing for the assignment of allocations from such other governmental units to the Assignee; and WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act, the Assignor has an allocation of the 2018 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2018, (the "2018 Allocation"); and WHEREAS, the Assignor has determined that, in order to increase the availability of adequate affordable rental housing for low- and moderate-income persons and families within the Jurisdiction, Colorado and elsewhere in the State, it is necessary or desirable to provide for the utilization of all or a portion of the 2018 Allocation; and WHEREAS, the Assignor has determined that the 2018 Allocation, or a portion thereof, can be utilized most efficiently by assigning it to the Assignee to issue Private Activity Bonds for the purpose of financing one or more multifamily rental housing projects for low- and moderate- income persons and families or to issue Private Activity Bonds for the purpose of providing single- family mortgage loans to low- and moderate-income persons and families ("Revenue Bonds"), and the Assignee has expressed its willingness to attempt to issue Revenue Bonds with respect to the 2018 Allocation assigned herein. The Assignee will use its best efforts to issue Revenue Bonds in an amount up to the Assigned Allocation (as defined below) to finance a portion of the costs of a Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 32 of 607 qualified residential rental project in the City of Boulder, Colorado and known as Golden West Senior Living (the “Project”); provided such project receives tax credits and the financing for the Project, in CHFA’s sole judgement is likely to close prior to December 31, 2018; and WHEREAS, the City Council of the Assignor has determined to assign to the Assignee $1,658,923 of its 2018 Allocation (the “Assigned Allocation”), and the Assignee has agreed to accept such assignment, which is to be evidenced by this Assignment. NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the parties hereto agree as follows: 1. The Assignor hereby assigns to the Assignee $1,658,923 of its 2018 Allocation (the “Assigned Allocation”), subject to the terms and conditions contained herein. The Assignor represents that it has received no monetary consideration for said assignment. 2. The Assignee hereby accepts the assignment to it by the Assignor of the Assigned Allocation, subject to the terms and conditions contained herein. The Assignee agrees to use its best efforts to issue and sell Revenue Bonds in an aggregate principal amount equal to or greater than the Assigned Allocation, in one or more series, and to make proceeds of such Revenue Bonds available from time to time for a period of three (3) years from the date of this Assignment to finance multi- family rental housing projects located in the Jurisdiction, or to issue Revenue Bonds for the purpose of providing single-family mortgage loans to low- and moderate income persons and families in the Jurisdiction. The Assignee will use its best efforts to issue Revenue Bonds in an amount up to the Assigned Allocation to finance the Project; provided such project receives tax credits and the financing for the Project, in CHFA’s sole judgement is likely to close prior to December 31, 2018. 3. The Assignor hereby consents to the election by the Assignee, if the Assignee in its discretion so decides, to treat all or any portion of the Assigned Allocation as an allocation for a project with a carryforward purpose or to make a mortgage credit certificate election, in lieu of issuing Revenue Bonds. 4. The Assignor and Assignee each agree that it will take such further action and adopt such further proceedings as may be required to implement the terms of this Assignment. 5. Nothing contained in this Assignment shall obligate the Assignee to finance any particular multi- family rental housing project located in the Jurisdiction or elsewhere or to finance single-family mortgage loans in any particular amount or at any particular interest rate or to use any particular percentage of the proceeds of its Revenue Bonds to provide mortgage loans or mortgage credit certificates to finance single-family housing facilities in the Jurisdiction, provided that any Revenue Bond proceeds attributable to the Assigned Allocation shall be subject to paragraph 2 above 6. This Assignment is effective upon execution and is irrevocable. Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 33 of 607 IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment on the date first written above. CITY OF BOULDER, COLORADO Mayor [SEAL] ATTEST: City Clerk COLORADO HOUSING AND FINANCE AUTHORITY [SEAL] By: ___________________________________ ATTEST: Title: _____________________________ ____________________________ By: Assistant Secretary Item 3D - Consideration of a motion to adopt Resolution 1239 City Council Meeting Page 34 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E T hird reading and consideration of a motion to adopt Ordinance 8264 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the city council to impose an oil and gas pollution tax at the rate of up to $6.90 per barrel of oil and up to $0.88 per thousand cubic feet of natural gas for oil or gas extracted within the Boulder city limits and expenditure of the full tax proceeds and any related earnings notwithstanding any state revenue or expenditure limitation; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. P RI MARY STAF F C ON TAC T T homas Carr, City Attorney RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Motion to adopt on third reading Ordinance 8264 submitting to the registered electors of the C ity of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the city council to impose an oil and gas pollution tax at the rate of up to $6.90 per barrel of oil and up to $0.88 per thousand cubic feet of natural gas for oil or gas extracted within the Boulder city limits and expenditure of the full tax proceeds and any related earnings notwithstanding any state revenue or expenditure limitation; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. AT TAC H ME N T S: Description Memo and Attachment City Council Meeting Page 35 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Third reading and consideration of a motion to adopt Ordinance 8264 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the city council to impose an oil and gas pollution tax at the rate of up to $6.90 per barrel of oil and up to $0.88 per thousand cubic feet of natural gas for oil or gas extracted within the Boulder city limits and expenditure of the full tax proceeds and any related earnings notwithstanding any state revenue or expenditure limitation; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. PRESENTERS Jane S. Brautigam, City Manager Tom Carr, City Attorney Mary Ann Weideman, Deputy City Manager Cheryl Pattelli, Chief Financial Officer Jim Robertson, Director, Community Planning and Sustainability Kendra Tupper, Chief Sustainability & Resilience Officer EXECUTIVE SUMMARY Oil and gas extraction imposes significant environmental, public safety, health and infrastructure costs on a community. Communities generally use general tax revenue to address these impacts. This agenda item asks council to consider a ballot measure that would impose a pollution tax on oil and gas operations in the City of Boulder. There are Item 3E- Third Reading Oil and Gas Ballot Measure City Council Meeting Page 36 of 607 currently no active wells in the city. Approval of this measure would allow a pollution tax to be in place if oil and gas operations come to the city. STAFF RECOMMENDATION Suggested Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt on third reading Ordinance 8264 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the city council to impose an oil and gas pollution tax at the rate of up to $6.90 per barrel of oil and up to $0.88 per thousand cubic feet of natural gas for oil or gas extracted within the Boulder city limits and expenditure of the full tax proceeds and any related earnings notwithstanding any state revenue or expenditure limitation; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS •Economic: Oil and gas extraction activities can impose a significant burden on a community. If such operations occur in Boulder, the proposed tax will help to offset the impacts on the community. •Environmental: As is discussed in more detail below, oil and gas operations can have a significant detrimental effect on the environment. The proposed tax would provide funding to address and mitigate those effects. •Social: Oil and gas operations can affect the health and viability of a community. The proposed tax would provide funding to address and mitigate those effects. OTHER IMPACTS •Fiscal: None. •Staff Time: The staff time needed to complete the background work for ballot issues will be completed with existing staff resources. BACKGROUND The city council recently extended the moratorium on the acceptance of applications under the open space oil and gas rules on use review applications for new “mining industries” under the land use code. Still, there is considerable concern in the community about potential oil and gas development within the city limits. Additionally, there are significant environmental and human health costs that result from oil and gas development, which are typically borne by local municipalities or individual community Item 3E- Third Reading Oil and Gas Ballot Measure City Council Meeting Page 37 of 607 members. This proposed ballot measure would place a new tax on oil and gas developers to cover the projected costs of these environmental and health impacts. Assigning an appropriate monetary value for these externalities will balance economic versus environmental and social interest and represent a portion of the true societal costs of oil and gas development. In the best-case scenario, there would be no oil and gas development within city limits, so no revenue would be collected from this tax. But if oil and gas development does take place, those profiting from these activities would pay a share of the societal costs. While other local jurisdictions are also considering a similar tax 1, staff has only found one example of a local municipality taxing this industry to cover the societal costs associated with oil and gas development. In 2013, Boulder County adopted an Oil and Gas Road Deterioration and Roadway Safety Fee, which is designed to recoup the incremental costs to the County transportation system resulting from the impacts of oil and gas development.2 The County’s fee is assessed per well and per well pad: •Roadway Deterioration Impact Fee: $17,300 per well •Roadway Deterioration Impact Fee: $700 per well pad •Roadway Safety Impact Fee: $17,300 per well •Cost of Project Delay (Poor Road) Impact Fee: $8,600 per well •Cost of Project Delay (Road Safety) Impact Fee: $8,000 per well Local governments do, of course, impose other taxes on oil and gas development, including sales, construction use and property taxes. While these taxes pay the cost of existing government services, they would not cover the additional impacts created by oil and gas development. Colorado’s severance tax was enacted in 1977. Taxes are collected by the Department of Revenue. The tax is imposed on the production or extraction of metallic minerals, molybdenum, oil and gas, oil shale, and coal, but it currently ranks among the lowest in the country because the state provides an ad valorem tax credit and has a generous stripper well exemption.3 Further, a 2016 Colorado Supreme Court decision allowed for even more tax deductions for the oil and gas industry.4 At a high level, Colorado imposes the following severances taxes: 1 Lafayette, CO is actively considering this as a 2018 ballot measure. Broomfield and Longmont are following these efforts closely for future consideration. 2 Boulder County Staff Report on the Impact Fee Study, May 16, 2013: https://assets.bouldercounty.org/wp-content/uploads/2017/04/dc-12-0003-staff-report-to-bocc- 20130516.pdf 3 Memo from Colorado Legislative Council Staff, January 12, 2018, “Effective Severance Tax Rates on Oil and Gas”: https://leg.colorado.gov/sites/default/files/interested_persons_memo_on_severance_taxes.pdf 4 “BP wins severance tax deduction in Colorado Supreme court ruling”, May 10, 2016, The Denver Post. https://www.denverpost.com/2016/05/10/bp-wins-severance-tax-deduction-in-colorado-supreme-court- ruling/ Item 3E- Third Reading Oil and Gas Ballot Measure City Council Meeting Page 38 of 607 •Two to five percent based on gross income for oil, gas, carbon dioxide and coalbed methane. •Four percent of gross proceeds on production exceeding 15,000 tons per day for oil shale. •When accounting for the ad valorem tax credit and stripper well exemptions, oil and gas developers pay only about 0.3 percent in effective severance tax.5 More detail on Colorado severance tax rates and use can be found here: https://leg.colorado.gov/agencies/legislative-council-staff/severance-tax Cost of Environmental and Human Health Impacts Future monetary costs of the vast environmental and human health impacts related to local oil and gas development are extremely difficult to quantify. The potential impacts are summarized in the table below. DAMAGE TO NATURAL RESOURCES •Threats to rivers and streams •Habitat loss and fragmentation •Contribution to global warming – on the extraction side, this is caused primarily from methane leaks in fracking operations, and leaks at natural gas storage and processing facilities.6 •Freshwater consumption DRINKING WATER CONTAMINATION •Surface and groundwater contamination and cleanup •Water treatment costs BROADER ECONOMIC IMPACTS •Value of residents’ homes at risk •Farms in jeopardy •Tax impacts to economic sectors that are unique to the area and oppose these activities (i.e. agritourism, outdoor recreation, and residential and agricultural property taxes) HEALTH PROBLEMS •Worker injury, illness and death from fires, toxic chemicals, spills, silicosis, etc. •Increased cases of asthma and other respiratory illnesses from the emission of volatile organic compounds (VOCs) including known and potential carcinogens •Increased risk of cancer 7 •Increased chance of high risk pregnancy and premature babies when living near extraction sites 5 Colorado Department of Revenue, U.S. Energy Information Administration: https://leg.colorado.gov/sites/default/files/interested_persons_memo_on_severance_taxes.pdf 6 The U.S. Environmental Protection Agency states that methane has a comparative impact 25 times greater than carbon pollution over a 100-year period. 7 A 2018 Colorado School of Public Health study concluded that people who live within 500 feet of a well in Colorado may experience a lifetime excess cancer risk eight times higher than EPA’s upper acceptable levels. Item 3E- Third Reading Oil and Gas Ballot Measure City Council Meeting Page 39 of 607 •Stress, sleep issues, and high blood pressure caused from noise from the drilling itself, the gas compressors, and other heavy machinery PUBLIC INFRASTRUCTURE AND SERVICES •Road and bridge damage •Increased demand for water •Cleanup of orphaned wells •Emergency response needs •Social dislocation and social service costs •Earthquakes from wastewater injection PUBLIC SAFETY •Response to fires and explosions A 2018 report by Dr. Paul Chinowsky, founder of Resilient Analytics, estimated that the City of Boulder would incur up to $36 million in costs between now and 2050, dealing with the impacts from climate change. However, these costs do NOT include any human health impacts. According to the Environmental Protection Agency, the social costs of carbon and methane (assuming a three percent discount rate) are summarized in the table below. These costs quantify the impact that these emissions have on health, well-being, and quality of life in terms of dollars. Social Cost of Carbon ($/metric ton of CO2e) Social Cost of Methane ($/metric ton CH4) 2015: $36 2050: $69 Average: $52.75 2015: $1,000 2050: $2,500 Average: $1,725 Combining the social cost of carbon with the estimate of carbon dioxide equivalents (CO2e) per barrel of oil, yields estimates of the social costs by volume extracted. However, CO2e only covers the impacts of global warming – it does not include the costs to society from things like oil spills, fires, explosions, water contamination, increased cancer risk, increased respiratory ailments, etc. Staff assumes that these unaccounted impacts would at least double the social cost for oil. The social cost of methane does cover most of the societal impacts from methane leaks and emissions, and also reflects the higher global warming potential compared to CO2. Social Costs per Barrel of Oil Social Costs per Mcf (thousand cubic feet) of Natural Gas Global Warming Equivalent 0.43 metric tons CO2/barrel 8 0.02 metric ton CH4/Mcf 10 8 EPA Greenhouse Gases Equivalencies Calculator - Calculations and References: https://www.epa.gov/energy/greenhouse-gases-equivalencies-calculator-calculations-and-references 10 The average methane emissions natural gas production, processing, transmission, storage, and distribution from the U.S. Department of Energy. Item 3E- Third Reading Oil and Gas Ballot Measure City Council Meeting Page 40 of 607 Partial Social Cost (using average cost) $23/Barrel of oil* * Only includes global warming impacts Social Cost (Partial Social Cost doubled)9 $46/Barrel Social Cost (using average cost) $35/Mcf of natural gas** ** Another study estimated costs between $5-$25/Mcf for only the air quality impacts from shale gas extraction in Pennsylvania.11 Proposed Tax Rate The social cost of these fossil fuels is particularly significant when considering the sale price for these fuels. If the city were to set the tax rate at the true social cost, it would be 40 percent and 480 percent of the sale price of oil and natural gas respectively. With that in mind, staff proposes a much lower rate, which represents only 15 percent and 2.5 percent of the social cost of these fuels. The scaling factors were chosen such that the proposed tax rate is roughly 12 percent of the sale price. Because the social cost of natural gas is higher relative to its sale price, it has a lower scaling factor. Oil Natural Gas Sale Price $58/barrel $7/Mcf Social Cost $46/barrel $35/Mcf Scaling Factor 15% 2.5% Proposed Tax Rate $6.90 $0.88 Because this is a tax, and not an impact fee, state law does not require the rate to directly correspond to the impact. Staff calculated the societal cost to show that the cost of the impacts is much higher than the proposed tax rate – but the tax rate itself was chosen to be a reasonable percentage of each fuels’ sale price. Use of Funds Staff proposes that any funds generated from this tax be dedicated to the costs created by oil and gas extraction operations with any remainder going to the general fund. ATTACHMENTS Attachment A – Proposed Ordinance 8264 9 To account for the fact that CO2e only covers the impacts of global warming – it does not include the costs to society from things like oil spills, fires, explosions, water contamination, increased cancer risk, increased respiratory ailments, etc. Staff assumes that these unaccounted impacts would at least double the social cost for oil. 11 Aviva Litovitz et al 2013 Environ. Res. Lett. 8 014017 Item 3E- Third Reading Oil and Gas Ballot Measure City Council Meeting Page 41 of 607 K:\CCCO\o-8264 3rd rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8264 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AUTHORIZING THE CITY COUNCIL TO IMPOSE AN OIL AND GAS POLLUTION TAX AT THE RATE OF UP TO $6.90 PER BARREL OF OIL AND UP TO $0.88 PER THOUSAND CUBIC FEET OF NATURAL GAS FOR OIL OR GAS EXTRACTED WITH THE BOULDER CITY LIMITS AND EXPENDITURE OF THE FULL TAX PROCEEDS AND ANY RELATED EARNINGS NOTWITHSTANDING ANY STATE REVENUE OR EXPENDITURE LIMITATION; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the city of Boulder, county of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the issue: Ballot Question No. ___ Imposition of an Oil and Gas Pollution Tax SHALL CITY OF BOULDER TAXES BE INCREASED $0 IN 2019 AND BY WHATEVER AMOUNTS ARE GENERATED ANNUALLY THEREAFTER THROUGH THE IMPOSITION OF AN OIL AND GAS POLLUTION TAX AT THE RATE OF UP TO $6.90 PER BARREL OF OIL AND UP TO $0.88 PER THOUSAND CUBIC FEET OF NATURAL GAS FOR OIL OR GAS EXTRACTED WITH THE BOULDER CITY LIMITS COMMENCING JANUARY 1, 2019, AND SHALL REVENUE FROM THE TAX BE USED TO FUND COSTS ASSOCIATED WITH OIL AND GAS EXTRACTION IN THE CITY OF Attachment A - Proposed Ordinance 8264 City Council Meeting Page 42 of 607 K:\CCCO\o-8264 3rd rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 BOULDER AND WITH THE REMAINDER USED BY THE GENERAL FUND AND SHALL ALL EARNINGS THEREON (REGARDLESS OF AMOUNT) CONSTITUTE A VOTER APPROVED REVENUE CHANGE, AND AN EXCEPTION TO THE REVENUE AND SPENDING LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? FOR THE MEASURE ____ AGAINST THE MEASURE ____ Section 3. If this ballot measure is approved by the voters, the City Council may adopt any necessary amendments to the Boulder Revised Code to implement this change. Section 4. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. The tax established by this measure is intended to be authorized under any lawful means of taxation, including license taxation pursuant to city of Boulder Charter Section 122. Section 5. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Section 6. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. Attachment A - Proposed Ordinance 8264 City Council Meeting Page 43 of 607 K:\CCCO\o-8264 3rd rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 7th day of August 2018. Suzanne Jones Mayor Attest: Lynnette Beck City Clerk READ ON SECOND READING, PASSED, this 21st day of August 2018. Suzanne Jones Mayor Attest: Lynnette Beck City Clerk READ ON THIRD READING, PASSED AND ADOPTED, this 4th day of September 2018. Suzanne Jones Mayor Attest: Lynnette Beck City Clerk Attachment A - Proposed Ordinance 8264 City Council Meeting Page 44 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E T hird reading and consideration of a motion to adopt Ordinance 8267 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the C ity of Boulder, without raising taxes, to keep all revenues from the 2016 voter-approved Sugar-Sweetened Beverage Product Distribution Excise Tax and continue to collect the tax at the previously approved rate and spend all revenues collected for the health equity-related purposes previously approved by the voters, without refunding to distributors the amount that exceeded the revenue estimates approved by voters in 2016; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. P RI MARY STAF F C ON TAC T J oel Wagner, Tax and Special Projects Manager RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Motion to adopt on third reading Ordinance 8267 submitting to the registered electors of the C ity of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the City of Boulder, without raising taxes, to keep all revenues from the 2016 voter-approved Sugar-Sweetened Beverage Product Distribution Excise Tax and continue to collect the tax at the previously approved rate and spend all revenues collected for the health equity-related purposes previously approved by the voters, without refunding to distributors the amount that exceeded the revenue estimates approved by voters in 2016; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. AT TAC H ME N T S: Description Memo and Attachment City Council Meeting Page 45 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Third reading and consideration of a motion to adopt Ordinance 8267 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the City of Boulder, without raising taxes, to keep all revenues from the 2016 voter- approved Sugar-Sweetened Beverage Product Distribution Excise Tax and continue to collect the tax at the previously approved rate and spend all revenues collected for the health equity-related purposes previously approved by the voters, without refunding to distributors the amount that exceeded the revenue estimates approved by voters in 2016; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. PRESENTER/S Jane S. Brautigam, City Manager Tom Carr, City Attorney Mary Ann Weideman, Deputy City Manager Tanya Ange, Deputy City Manager Cheryl Pattelli, Chief Financial Officer Kara Skinner, Assistant Finance Director Kathy Haddock, Deputy City Attorney Matt Sundeen, Community Programs Manager, Human Services Joel Wagner, Tax and Special Projects Manager Item 3F - Third Reading Sugar-Sweetened Beveage Ordinance City Council Meeting Page 46 of 607 EXECUTIVE SUMMARY On June 19, 2018 council passed Ordinance 8267 on first reading. At second reading on August 14, 2018, council passed amended Ordinance 8267. This agenda item seeks consideration of Ordinance 8267 on third and final reading. In preparation of this agenda item, city council members have reviewed or considered the retention of excess sugar- sweetened beverage product distribution excise tax (“SSB tax”) revenue at the May 8 study session, approved Ordinance 8267 on first reading on June 19, 2018, and, after holding a public hearing on August 14, 2018, approved an amended Ordinance 8267 at second reading. Ordinance 8267 asks voters to approve retention of sugar-sweetened beverage product distribution excise tax revenue in excess of the first full fiscal year (2018) revenue estimate contained in the 2016 ballot question and every year thereafter. If passed on third reading, the amended ballot language and ordinance will be placed on the ballot for the November 6, 2018 election (see Attachment A). The background information for this topic can be found in the study session summary dated May 8, 2018, and the first reading memorandum dated June 19, 2018, and the second reading memorandum dated August 14, 2018. STAFF RECOMMENDATION Suggested Motion Language: Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt on third reading Ordinance 8267 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of authorizing the City of Boulder, without raising taxes, to keep all revenues from the 2016 voter-approved Sugar-Sweetened Beverage Product Distribution Excise Tax and continue to collect the tax at the previously approved rate and spend all revenues collected for the health equity-related purposes previously approved by the voters, without refunding to distributors the amount that exceeded the revenue estimates approved by voters in 2016; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS Economic: The proposed motion would not raise the current level of taxes. The SSB tax would continue to be charged on all transactions subject to taxation. The revenue collected and retained would provide increased funds for purposes and programs approved in the original ballot measure. Item 3F - Third Reading Sugar-Sweetened Beveage Ordinance City Council Meeting Page 47 of 607 Environmental: The negative impacts of a tax on sugar-sweetened beverage products on the environment are minimal. It is possible that the increased cost could reduce the sales of sugar-sweetened beverage products with an associated reduction of cans and bottles into the waste and recycling streams. Programs to increase access to safe and clean drinking water have the potential to improve water quality. Social: Funds generated from the tax must be used to improve health equity in Boulder through the support of health promotion, general wellness programs and chronic disease prevention. Since the tax went into effect on July 1, 2017, the city has awarded or allocated more than $3.2 million for health equity programs. OTHER IMPACTS Fiscal – This measure would remove Taxpayer Bill of Rights (TABOR) limitations on the maximum amount that could be collected and retained through an existing tax in the first full year of tax collections, and will not increase taxes. Staff time – The staff time needed to complete the background work for ballot items is included within the departmental work plans. COUNCIL AND PUBLIC FEEDBACK City council considered this item at the May 8, 2018 study session and approved Ordinance 8267 on first reading on June 19, 2018. Council agreed that that this issue should be addressed and asked staff to proceed with preparing ballot language for council’s consideration. Council feedback is summarized and compiled in the May 8 study session summary. Council and public feedback received in advance of the public hearing for second reading of the ordinance is summarized in the second reading memorandum. During the public hearing for second reading of the ordinance on August 14, 2018, six individuals spoke during the public comment period; four individuals spoke in favor of the ordinance, and two spoke in opposition. During the August 14, 2018 public hearing, council requested that staff revise the proposed ordinance to include the following information: 1. Specify that the tax collected will be at the rate previously approved by voters (two cents per ounce). 2. Specify that the excess revenues collected would be used for the health equity- related purposes previously approved by the voters (which is for administrative costs of the program and generally to improve health equity in Boulder through the support of health promotion, general wellness programs and chronic disease prevention). 3. Specify that excess funds, if refunded, would be refunded to distributors. Item 3F - Third Reading Sugar-Sweetened Beveage Ordinance City Council Meeting Page 48 of 607 The requested revisions are reflected in revised Ordinance 8267 in Attachment A. BACKGROUND The background information for this topic can be found in the study session memorandum dated May 8 2018, the study session summary, the first reading memorandum dated June 19, 2018, the second reading memorandum dated August 14, 2018, and the public hearing video dated August 14, 2018. The Sugar-Sweetened Beverage Product Distribution Excise Tax was approved by voters in November 2016 and implemented in July 2017. The SSB tax is not a sales tax charged directly to the consumer. Instead, distributors of sugar-sweetened beverage products pay this excise tax when they distribute sugar sweetened beverage products within the City of Boulder. According to the ballot issue, funds generated from the tax must be used as specified in the ballot issue, which is generally to improve health equity in Boulder through the support of health promotion, general wellness programs and chronic disease prevention. Additionally, the funds will cover the administrative cost of the tax. TABOR requires that a ballot question approving any new tax include an estimate of the revenues in the first full fiscal year of the tax. The 2016 ballot issue for the SSB tax included the initiative committee’s estimated amount of $3.8 million. Based on actual collections to date, the projected 2018 SSB tax amount is expected to be up to $5.2 million, $1.4 million higher than the original estimate. At the May 8 study session, council discussed the staff analysis and charter committee recommendation. During the meeting council provided feedback on proposed ballot language and asked staff to prepare language to place the ordinance on the November 6, 2018 ballot. Council discussed the staff recommendation during the August 14, 2018 public hearing, and passed amended Ordinance 8267 on second reading. NEXT STEPS If council adopts the attached ordinance on third reading, the ordinance will be placed on the November 6, 2018 ballot. ATTACHMENTS A. Sugar-Sweetened Beverage Ballot Ordinance Item 3F - Third Reading Sugar-Sweetened Beveage Ordinance City Council Meeting Page 49 of 607 K:\CCCO\o-8267 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8267 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AUTHORIZING THE CITY OF BOULDER, WITHOUT RAISING TAXES, TO KEEP ALL REVENUES FROM THE 2016 VOTER-APPROVED SUGAR-SWEETENED BEVERAGE PRODUCT DISTRIBUTION EXCISE TAX AND CONTINUE TO COLLECT THE TAX AT THE PREVIOULSY APPROVED RATE, AND SPEND ALL REVENUES COLLECTED FOR THE HEALTH EQUITY-RELATED PURPOSES PREVIOUSLY APPROVED BY THE VOTERS, WITHOUT REFUNDING TO DISTRIBUTORS THE AMOUNT THAT EXCEEDED THE REVENUE ESTIMATES APPROVED BY VOTERS IN 2016; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the City of Boulder, County of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the issue: Ballot Question No. ___ May the City Keep and Spend all Revenue from the Sugar-sweetened Beverage Product Distribution Excise Tax WITHOUT RAISING TAXES MAY THE CITY KEEP ALL REVENUES FROM THE 2016 VOTER-APPROVED SUGAR- SWEETENED BEVERAGE PRODUCT DISTRIBUTION EXCISE TAX, AND CONTINUE TO COLLECT THE TAX AT THE PREVIOULSY APPROVED RATE, AND SPEND ALL REVENUES COLLECTED FOR THE HEALTH EQUITY- RELATED PURPOSES PREVIOUSLY APPROVED BY THE Attachment A - Sugar-Sweetened Beverage Ballot Ordinance City Council Meeting Page 50 of 607 K:\CCCO\o-8267 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 VOTERS, WITHOUT REFUNDING TO DISTRIBUTORS THE AMOUNT THAT EXCEEDED THE REVENUE ESTIMATES APPROVED BY VOTERS IN 2016? FOR THE MEASURE ____ AGAINST THE MEASURE____ Section 3. If this ballot measure is approved by the voters, the Charter shall be so amended, and the City Council may adopt any necessary amendments to the Boulder Revised Code to implement this change. Section 4. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. The tax established by this measure is intended to be authorized under any lawful means of taxation, including license taxation pursuant to city of Boulder Charter Section 122. Section 5. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Section 6. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 19th day of June 2018. __________________________________ Suzanne Jones Mayor Attest: ________________________________ Lynnette Beck City Clerk Attachment A - Sugar-Sweetened Beverage Ballot Ordinance City Council Meeting Page 51 of 607 K:\CCCO\o-8267 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 READ ON SECOND READING, AMENDED AND PASSED, this 14th day of August 2018. __________________________________ Suzanne Jones Mayor Attest: _______________________________ Lynnette Beck City Clerk READ ON THIRD READING, PASSED AND ADOPTED, this 4th day of September 2018. __________________________________ Suzanne Jones Mayor Attest: _______________________________ Lynnette Beck City Clerk Attachment A - Sugar-Sweetened Beverage Ballot Ordinance City Council Meeting Page 52 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E T hird reading and consideration of a motion to adopt Ordinances 8272, 8273 and 8274 related to the work of the Campaign Finance and Elections Working Group; setting forth the ballot titles; specifying the form of the ballots and other election procedures; and setting forth related details. P RI MARY STAF F C ON TAC T David Gehr, Chief Deputy C ity Attorney RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Ordinances 8272, 8273 and 8274 related to the work of the C ampaign Finance and Elections Working Group: 1. T hird reading and consideration of a motion to adopt Ordinance 8272 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending City C harter Sections 29, 38A, 38B, 39, 40, 44, 48, 54, 56, and 177 of the Boulder C ity Charter regarding the city’s initiative, referendum and recall processes; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. 2. T hird reading and consideration of a motion to adopt Ordinance 8273 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Sections 39, 46, and 57 of the C ity Charter to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, compare the signatures on a petition to signatures with the election records of the Boulder C ounty Clerk or the Secretary of State; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. 3. T hird reading and consideration of a motion to adopt Ordinance 8274 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Sections 38, 45, and 56 of the C ity Charter to permit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall petitions; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting City Council Meeting Page 53 of 607 forth related details AT TAC H ME N T S: Description Memo and Attachment City Council Meeting Page 54 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Ordinances 8272, 8273 and 8274 related to the work of the Campaign Finance and Elections Working Group: 1.Third reading and consideration of a motion to adopt Ordinance 8272 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending the Boulder City Charter Sections 29, 38A, 38B, 39, 40, 44, 48, 54, 56, and 177 regarding the city’s initiative, referendum and recall processes; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. 2.Third reading and consideration of a motion to adopt Ordinance 8273 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 39, 46, and 57 of the Boulder City Charter to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, compare the signatures on a petition to signatures with the election records of the Boulder County Clerk or the Secretary of State; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. 3.Third reading and consideration of a motion to adopt Ordinance 8274 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Sections 38, 45, and 56 of the Boulder City Charter to permit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall petitions; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 55 of 607 PRESENTERS Jane S. Brautigam, City Manager Tom Carr, City Attorney David Gehr, Chief Deputy City Attorney Kathy Haddock, Senior Counsel Lynnette Beck, City Clerk Tammye Burnette, City Manager’s Office EXECUTIVE SUMMARY At the September 4, 2018 council meeting, council will consider final approval of three potential ballot measures. On August 14, 2018, the council approved amendments that clarified ordinance and ballot question language and corrected minor typographical errors in the three ordinances. Staff redrafted each ordinance to more clearly reflect proposed changes to the Charter. The three ordinances are related the working group’s efforts on its review of election procedures. 1.Ordinance 8272 contains most of the working group’s recommended charter amendments affecting Sections 29, 38A, 38B, 39, 40, 44, 48, 54, 56, and 177. 2.Ordinance 8273 includes charter amendments to Sections 39, 46, and 57 of the City Charter to require the city clerk to compare each signature on a petition to signatures on file with the Boulder County Clerk or the Secretary of State. Comparison of the signatures is intended to help further ensure authenticity of petitions. 3.Ordinance 8274 includes charter amendments to Section 38, 45, and 56 of the City Charter to allow the city council to adopt ordinances to permit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall petitions. Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 56 of 607 STAFF RECOMMENDATION Suggested Motion Language Staff requests council consideration of this matter and action in the form of the following motions: 1.Motion to adopt Ordinance 8272 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending the Boulder City Charter Sections 29, 38A, 38B, 39, 40, 44, 48, 54, 56, and 177 regarding the city’s initiative, referendum and recall processes; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. 2.Motion to adopt Ordinance 8273 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 39, 46, and 57 of the Boulder City Charter to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, compare the signatures on a petition to signatures with the election records of the Boulder County Clerk or the Secretary of State; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. 3.Motion to adopt Ordinance 8274 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Sections 38, 45, and 56 of the Boulder City Charter to permit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall petitions; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS •Economic – No direct economic impacts are anticipated by these ballot measures. •Environmental – No direct environmental impacts are anticipated. •Social – Voter trust in the election process and the ability of the people to have an avenue to participate in direct democracy efforts is important to good governance. OTHER IMPACTS •Fiscal – Some of the recommendations of the working group may require additional staff and/or monetary resources to implement. •Staff time – All of the recommendations of the working group can be accomplished within staff’s existing work plan except for two of the recommendations. o The first is the change to require comparison of each signature to the Boulder County Clerk or the Secretary of State. That work may require Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 57 of 607 additional temporary employees and impact the clerk’s office in the 10 days following submittal of petitions. o If the city permits use of electronic petitions and on-line electronic signing, a second working group has been requested to provide recommendations to council on how to implement the new system. Such a working group is a large endeavor impacting the City Clerk’s Office, City Attorney’s Office, City Manager’s Office, Communication Department and the Innovation and Technology Department. It would require modifications to the work plans for each department and perhaps affect other initiatives. BACKGROUND Council adopted proposed amendments to the three ordinances as provided in the Errata Memorandum at the August 14, 2018 council meeting, see Attachment D. Council made a few additional amendments to Ordinances 8272 and 8274 during the council meeting. Those amendments are outlined below. Revised ordinances with all amendments may be found in Attachment A, B and C. •Council amendments to Ordinance 8272 are as follows: o Sec. 38A language was amended to include a different percentage of signatures required for initiative and referenda petitions, at ten percent, than recall petitions, at twenty percent: Sec. 38A. – Five percent petition or fifteen percent petition Signatures required for initiative, referenda and recall petitions. Attached to every instrument filed as an initiative petition shall be a certificate signed by a majority of the committee of petitioners stating whether the petition is intended to be a “five per-cent petition” or a “fifteen per-cent petition.” The ballot for a five percent petition in compliance with this charter will be placed on the ballot at an election held in November. The ballot for a fifteen percent petition in compliance with this charter will be placed on the ballot at the next available election, which may be a special election other than a November election called by the city. A petition signed by registered electors of the city of at least ten percent of the average of the number of regis tered electors of the city who voted in the previous two municipal candidate elections shall be required for an initiative and referendum petition to be sufficient. A petition signed by registered electors of the city of at least twenty percent of the ave rage of the number of registered electors of the city who voted in the previous two municipal candidate elections shall be required for a recall petition to be sufficient. o Sec. 44 language was amended to reflect that twenty percent of signatures is required for recall of a referendum petition: If, within thirty calendar days after final passage of any measure by the council, a petition signed by at least twenty percent of the average of the number of registered Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 58 of 607 electors of the city who voted in the previous two municipal candidate elections registered electors of the city to the number of at least ten percent of the registered electors of the city as of the day the petition is filed be filed with the city clerk requesting that any such measure, or any part thereof, be repealed or be submitted to a vote of the electors, it shall not, except in the case of an emergency measure, become operative until the steps indicated herein have been taken. o Sec. 56 language was amended to reflect that twenty percent of signatures is required for recall petitions: Sec. 56. - Petition for recall. A petition signed by electors registered to vote for a successor to the incumbent sought to be removed equal in number to at least twenty-fivetwenty percent of the average of the number of registered electors of the city who voted in th e previous two municipal candidate elections last preceding vote cast within the city for all candidates for governor shall be addressed to the council and filed with the city clerk. •Council amendments to Ordinance 8274 are as follows: o Sec. 38 (b) language was amended to change the use of “shall” to “may”: Sec. 38. - Preparation of initiative petitions. Petitions shall be worded clearly and simply so the petition is not misleading or likely to cause confusion to voters. Petitions drafts shall be consistent with applicable law. The draftPetitions shall present the ballot measure in such manner that a vote for the measure would be a vote for the proposition and that a vote against the measure would be a vote against the proposition. (a)For paper petitions that are circulated by a person Ssignatures to initiative petitions need not all be on one paper, but the circulator of every such paper shall make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. With each signature shall be stated the place of residence of the signer, giving the street and number or other description sufficient to identify the place, and the date the signer signed the petition. All such papers pertaining to any one measure shall have written or printed thereon the names and addresses of at least five registered electors who shall be officially regarded as filing the petition and shall constitute a committee of the petitioners for the purposes hereinafter named. All such papers shall be filed in the office of the city clerk as one instrument. (b)Electronic petitions and on-line electronic signing or endorsement of petitions may be allowed as permitted by the Boulder Revised Code. Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 59 of 607 o Sec. 45 language was amended to change the use of “shall” to “may”: Sec. 45. - Signatures to petition. The signatures thereto need not all be on one paper, but the circulator of every such paper shall make an affidavit that each signature appended thereto is the genuine signature of the person whose name it purports to be. With each signature shall be stated the place of residence of the signer, giving the street and number or other description sufficient to identify the place. All such papers shall be filed in the office of t he city clerk as one instrument. A referendum petition need not contain the text of the measure designated therein and of which the repeal is sought. Electronic petitions and on -line electronic signing or endorsement of petitions may be allowed as permitted by the Boulder Revised Code. o Sec. 56 language was amended to change the use of “shall” to “may”: . . . The signatures to a recall petition need not all be appended to one paper, but each person shall add to such person's signature such person's place of residence, giving the street and number. The circulator of each such paper shall make affidavit before an officer competent to administer oaths that the statements contained therein are true and that each signature appended to the paper is the gen uine signature of the person whose name it purports to be. All papers composing said petition shall be assembled and filed as one instrument, with endorsements thereon of the names and addresses of three persons designated as filing said petition; provided , that prior to the issuance of any blank forms of petitions for removal, an affidavit shall be made by one or more registered electors, which affidavit shall state the name of the officer or officers sought to be removed and the grounds upon which the rem oval is sought, and such affidavit shall be filed with the city clerk. Electronic petitions and on -line electronic signing or endorsement of petitions may be allowed as permitted by the Boulder Revised Code. ATTACHMENTS A – Proposed Ordinance 8272 with amendments passed on August 14, 2018 B – Proposed Ordinance 8273 with amendments passed on August 14, 2018 C – Proposed Ordinance 8274 with amendments passed on August 14, 2018 D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 60 of 607 K:\CCCO\o-8272 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8272 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING THE BOULDER CITY CHARTER SECTIONS 29, 38A, 38B, 39, 40, 44, 48, 54, 56, AND 177 REGARDING THE CITY’S INITIATIVE, REFERENDUM AND RECALL PROCESSES; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the City of Boulder, County of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Sections 29, 38A, 38B, 39, 40, 44, 48, 54, 56, and 177 of the Boulder City Charter regarding the city’s initiative, referendum and recall processes. The material to be added to the Charter is shown by double underlining and material to be deleted is shown stricken through with solid lines. Section 3. Sections 29, 38A, 38B, 39, 40, 44, 48, 54, 56, and 177 shall be amended to read as follows: Sec. 29. - Withdrawal from nomination. Any person having been duly and regularly nominated as herein provided, may, prior to the sixty- sixth day preceding the election for which such person has been nominated, withdraw from such nomination by filing with the city clerk a sworn statement of such withdrawal. If a withdrawal occurs on the sixty-fifth day or any day thereafter preceding the election, before the ballots are finalized for printing, the name of the person shall not appear on the ballot. If the withdrawal occurs after ballots are finalized for printing, the votes cast for that person shall not be counted. Attachment A – Proposed Ordinance 8272 with amendments passed on August 14, 2018 City Council Meeting Page 61 of 607 K:\CCCO\o-8272 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Sec. 38A. – Five percent petition or fifteen percent petition Signatures required for initiative, referenda and recall petitions. Attached to every instrument filed as an initiative petition shall be a certificate signed by a majority of the committee of petitioners stating whether the petition is intended to be a “five per- cent petition” or a “fifteen per-cent petition.” The ballot for a five percent petition in compliance with this charter will be placed on the ballot at an election held in November. The ballot for a fifteen percent petition in compliance with this charter will be placed on the ballot at the next available election, which may be a special election other than a November election called by the city. A petition signed by registered electors of the city of at least ten percent of the average of the number of registered electors of the city who voted in the previous two municipal candidate elections shall be required for an initiative and referendum petition to be sufficient. A petition signed by registered electors of the city of at least twenty percent of the average of the number of registered electors of the city who voted in the previous two municipal candidate elections shall be required for a recall petition to be sufficient. Sec. 38B. - Submission of initiative form for comment. Prior to obtaining any signatures on the petition, the committee of the petitioners shall submit the proposed petition form to the city manager for review and comment. Within ten days, the time determined by the city manager, or if none is determined, the time provided in the applicable state law, the city manager shall provide the committee of the petitioners with comments concerning the format or contents of the petition. Where appropriate, such comments may also contain suggested editorial changes to enhance the clarity and simplicity of the language in the petition. The committee of petitioners may amend the petition in response to some or all of the comments of the city manager and resubmit it for review. Any additional comments from the city manager on these amendments shall be provided within five calendar days. If any substantial amendment is made to the petition, other than an amendment in direct response to the comments of the city manager, the amended petition shall be resubmitted to the city manager in accordance with this section. In the event the committee of the petitioners fails to submit the proposed petition form, or any substantial amendment to the proposed petition form, prior to obtaining signatures, the city clerk may refuse to accept the petition for filing. Sec. 39. – Filing of petition; protest. Within the time determined by the city manager, or if none, the time in state law, the city clerk shall ascertain by examination the number of registered electors whose signatures are appended thereto, dated no more than one hundred eighty days prior to the date of filing, and whether this number is at least five percent of the number of registered electors of the city as of the day the petition is submitted for comment pursuant to section 38B. By the last business day on or before 150 calendar days before the November election, the committee of petitioners shall submit its petition. The city clerk shall ascertain by examination the number of registered electors whose signatures are appended thereto, dated no more than 180 calendar days prior to the date of filing, and whether this number meets the requirements of section 38A. By 140 calendar days before the November electionT the clerk shall attach to said petition a certificate showing the result of said Attachment A – Proposed Ordinance 8272 with amendments passed on August 14, 2018 City Council Meeting Page 62 of 607 K:\CCCO\o-8272 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 examination. If by the city clerk’s certificate, of which notice in writing shall be given to one or more of the persons designated, the petition is shown to be insufficient, it may be amended within ten days from the date of said certificate by filing supplementary petition papers with additional signatures. The city clerk shall make like examination of the amended petition, with such examination being completed by 120 calendar days before the November election, and shall certify whether the petition is sufficient or insufficient on or before that day. and iIf the clerk’s certificate shall show the same to be insufficient, the city clerk shall file the petition in the clerk’s office and shall notify each member of the committee of that fact. The final finding of the insufficiency of a petition shall not prejudice the filing of a new petition for the same purpose. When examining the signatures on petitions, the clerk may verify signatures to the extent reasonably possible by comparison with the election records of the Boulder County Clerk as available, and comparison of signatures on a petition for duplication. Protests of petitions may be made as provided by Colorado law and rules adopted by the city manager. Sec. 40. - Submission of petition to council. If the petition shall be found to be sufficient, the city clerk shall so certify and submit the measure to the council at its next regular meeting., at which meeting the council shall read and refer the same to an appropriate committee, which may be a committee of the whole. Provision shall be made for public hearings upon the measure before the committee to which it is referred. Thereafter the committee shall report the measure to the council, with its recommendation thereon, not later than sixty days after the date upon which such measure was submitted to the council by the city clerk. Upon receiving the measure from the committee, the council shall at once proceed to consider it and shall take final action thereon within sixty days from the date of such committee report. Unless the committee of petitioners withdraws the petition, the council shall take final action, including setting the title, prior to 70 calendar days before the November election. Title challenges shall be filed no later than seven calendar days after setting of the ballot title. Sec. 44. - Referendum petition. If, within thirty calendar days after final passage of any measure by the council, a petition signed by at least twent y percent of the average of the number of registered electors of the city who voted in the previous two municipal candidate elections registered electors of the city to the number of at least ten percent of the registered electors of the city as of the day the petition is filed be filed with the city clerk requesting that any such measure, or any part thereof, be repealed or be submitted to a vote of the electors, it shall not, except in the case of an emergency measure, become operative until the steps indicated herein have been taken. Sec. 48. - Title of ballots. Proposed measures and charter amendments shall be submitted by ballot title. There shall appear upon the official ballot a ballot title which may be distinct from the legal title of any such proposed measure or charter amendment and which shall be a clear, concise statement, without argument or prejudice, descriptive of the substance of such measure or charter amendment. The ballot title shall be prepared by a committee of the council which may be a committee of the whole. Attachment A – Proposed Ordinance 8272 with amendments passed on August 14, 2018 City Council Meeting Page 63 of 607 K:\CCCO\o-8272 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 If the proposed measure is an initiative, council shall seek the input of the committee of the petitioners prior to setting the ballot title. Sec. 54. – Repeal or amendment of initiated or referred measures. No ordinance that has been passed by vote of the people under the initiative or has received a favorable vote of the people under the referendum shall be repealed except by an ordinance submitted to a vote of the people. An ordinance passed by vote of the people under the initiative or has received a favorable vote of the people under the referendum may be amended by two-thirds of the council members present provided that the amendments do not alter or modify the basic intent of such ordinance or are necessary to come into compliance with state or federal law. Sec. 56. - Petition for recall. A petition signed by electors registered to vote for a successor to the incumbent sought to be removed equal in number to at least twenty-fivetwenty percent of the average of the number of registered electors of the city who voted in the previous two municipal candidate elections last preceding vote cast within the city for all candidates for governor shall be addressed to the council and filed with the city clerk. The city clerk shall make available sample forms to be utilized in formatting such petitions. The form of a recall petition shall be approved or disapproved by the city clerk, prior to its circulation, by the close of the second business day following the submission of the proposed petition for review. On the date on which a recall petition is approved, the clerk shall notify the officer sought to be recalled by mail or by electronic communication. All petitions shall be returned and filed with the city clerk within thirty days from the date on which the clerk approves the form of a recall petition. When submitted to the clerk, the petition shall contain a general statement, of not more than two hundred words, listing the grounds on which the recall is so ught. A copy of that statement, along with a statement of no more than two hundred words, if submitted, from the official against whom the recall petition is filed, shall be publicly posted or otherwise made available to members of the public in electronic or hard copy form at least twenty days prior to the holding of any recall election. The signatures to a recall petition need not all be appended to one paper, but each person shall add to such person's signature such person's place of residence, giving the street and number. The circulator of each such paper shall make affidavit before an officer competent to administer oaths that the statements contained therein are true and that each signature appended to the paper is the genuine signature of the person whose name it purports to be. All papers composing said petition shall be assembled and filed as one instrument, with endorsements thereon of the names and addresses of three persons designated as filing said petition; provided, that prior to the issuance of any blank forms of petitions for removal, an affidavit shall be made by one or more registered electors, which affidavit shall state the name of the officer or officers sought to be removed and the grounds upon which the removal is sought, and such affidavit shall be filed with the city clerk. Attachment A – Proposed Ordinance 8272 with amendments passed on August 14, 2018 City Council Meeting Page 64 of 607 K:\CCCO\o-8272 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Sec. 177 - Disposal of open space land. No open space land owned by the city may be sold, leased, traded, or otherwise conveyed, nor may any exclusive license or permit on such open space land be given, until approval of such disposal by the city council. Such approval may be given only after ap proval of such disposal by the affirmative vote of at least three members of the open space board of trustees after a public hearing held with notice published at least ten days in advance in a newspaper of general circulation in the city, giving the locat ion of the land in question and the intended disposal thereof. No open space land owned by the city shall be disposed of until sixty days following the date of city council approval of such disposal. If, within such sixty -day period, a petition meeting the requirements of Section 45 above and signed by registered electors of the city to be at least ten percent of the average of the number of at least five percent of the registered electors of the city who voted in the previous two municipal candidate elect ions as of the day the petition is filed with the city clerk, requesting that such disposal be submitted to a vote of the electors, such disposal shall not become effective until the steps indicated in Sections 46 and 47 above have been followed. This section shall not apply to agricultural leases for crop or grazing purposes for a term of five years or less. This section is to be construed liberally in favor of providing opportunities for the citizens of the city to refer measures proposing the disposal of any open space land. Section 4. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: Ballot Question No. ___ Initiative, Referendum and Recall Process Charter Amendments Shall Sections 29, 38A, 38B, 39, 40, 44, 48, 54, 56, and 177 of the City Charter be amended pursuant to Ordinance 8272 to: • clarify the actions required to be taken if a candidate withdraws from a city council election; • establish the number of signatures required for an initiative and referendum to be at least ten percent of the average number of registered electors of the city who voted in the previous two municipal candidate elections so as to return this number closer to the range that was in place prior to changes in federal law and registration procedures; • establish the number of signatures required for a recall to be at least twenty percent of the average number of registered electors of the city who voted in the previous two municipal candidate elections; Attachment A – Proposed Ordinance 8272 with amendments passed on August 14, 2018 City Council Meeting Page 65 of 607 K:\CCCO\o-8272 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • amend the process and establish a fixed schedule for filing, review and consideration of initiative, referendum, and recall petitions so that both petitioners and city staff will have clarity and certainty; • set standards for the city clerk’s examination of petitions so that this examination is completed in a timely fashion and that the possibility of fraud is minimized; • provide for input from the petition committee to the city council prior to setting the ballot title to help ensure accuracy of the title; and • require that an ordinance passed by vote of the people may only be amended by two-thirds of the council members present, and only if the amendments are consistent with the basic intent of the ordinance or are necessary to come into compliance with state or federal law? For the Measure ____ Against the Measure ____ Section 5. If this ballot measure is approved by the voters, the Charter shall be so amended, and the City Council may adopt any necessary amendments to the Boulder Revised Code to implement this change. Section 6. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 7. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Section 8. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. Attachment A – Proposed Ordinance 8272 with amendments passed on August 14, 2018 City Council Meeting Page 66 of 607 K:\CCCO\o-8272 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 19th day of June 2018. ___________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON SECOND READING, AMENDED AND PASSED, this 14th day of August 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON THIRD READING, PASSED AND ADOPTED, this 4th day of September 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk Attachment A – Proposed Ordinance 8272 with amendments passed on August 14, 2018 City Council Meeting Page 67 of 607 K:\CCCO\o-8273 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8273 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING SECTIONS 39, 46, AND 57 OF THE BOULDER CITY CHARTER TO REQUIRE THE CITY CLERK, TO THE EXTENT REASONABLY POSSIBLE AND SO AS TO ENSURE AUTHENTICITY, COMPARE THE SIGNATURES ON A PETITION TO SIGNATURES WITH THE ELECTION RECORDS OF THE BOULDER COUNTY CLERK OR THE SECRETARY OF STATE; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the City of Boulder, County of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Sections 39, 46, and 57 of the City Charter to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, compare the signatures on a petition to signatures with the election records of the Boulder County Clerk or the Secretary of State. The material to be added to the Charter is shown by double underlining and material to be deleted is shown stricken through with solid lines. Section 3. Section 39, 46, and 57 shall be amended to read as follows: Sec. 39. - Filing of petition; protest. Within the time determined by the city manager, or if none, the time in state law, the city clerk shall ascertain by examination the number of registered electors whose signatures are appended thereto, dated no more than one hundred eighty days prior to the date of filing, and Attachment B – Proposed Ordinance 8273 with amendments passed on August 14, 2018 City Council Meeting Page 68 of 607 K:\CCCO\o-8273 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 whether this number is at least five percent of the number of registered electors of the city as of the day the petition is submitted for comment pursuant to section 38B. The clerk shall attach to said petition a certificate showing the result of said examination. If by the city clerk’s certificate, of which notice in writing shall be given to one or more of the persons designated, the petition is shown to be insufficient, it may be amended within ten days from the date of said certificate by filing supplementary petition papers with additional signatures. The city clerk shall make like examination of the amended petition, and if the clerk’s certificate shall show the same to be insufficient, the city clerk shall file the petition in the clerk’s office and shall notify each member of the committee of that fact. The final finding of the insufficiency of a petition shall not prejudice the filing of a new petition for the same purpose. When examining the signatures on petitions, the clerk shall may verify signatures to the extent reasonably possible by comparison with the election records of the Boulder County Clerk or the Secretary of State and shall compare the signatures as available, and comparison of signatures on a petition for duplication. The clerk may use facilities of other cities to assist in this process. Protests of petitions may be made as provided by Colorado law and rules adopted by the city manager. the Boulder Revised Code but must be submitted by 40 calendar days after submittal of the petition to the clerk. Sec. 46. - Certificate of petition. Within ten days after the filing of the petition the city clerk shall ascertain whether or not the petition is signed by registered electors of the city to the number of at least ten percent of the registered electors of the city as of the day the petition was filed, and the clerk shall attach to such petition a certificate showing the result of such examination. If by the city clerk's certificate the petition is shown to be insufficient, it may be amended within ten days from the date of said certificate by the filing of supplementary petition papers with additional signatures. The city clerk shall within ten days after such amendment make like examination of the amended petition and certify the result thereof. The City Clerk shall verify signatures to the extent reasonably possible by comparison with the election records of the Boulder County Clerk or the Secretary of State. Sec. 57. - Petition may be amended or new petition made. Within ten days from the filing of said petition the city clerk shall ascertain by examination thereof and of the registration books and election returns whether the petition is signed by the required number of registered electors and shall attach thereto a certificate showing the result of such examination. The clerk shall, if necess ary, be allowed extra help. If the certificate shows the petition to be insufficient, the clerk shall, within five days, so notify in writing one or more of the persons designated on the petition as filing the same; and the petition may be amended at any time within ten days from the filing of the certificate. The city clerk shall, within ten days after such amendment, make like examination of the amended petition and attach thereto a certificate of the result. If still insufficient or if no amendment is made, the clerk shall return the petition to one of the persons designated thereon as filing it, without prejudice, however, to the filing of a new petition for the same purpose. The City Attachment B – Proposed Ordinance 8273 with amendments passed on August 14, 2018 City Council Meeting Page 69 of 607 K:\CCCO\o-8273 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Clerk shall verify signatures to the extent reasonably possible by comparison with the election records of the Boulder County Clerk or the Secretary of State. Section 4. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: Ballot Question No. ___ Charter Provisions Related to Signature Verification Shall Sections 39, 46, and 57 of the City Charter be amended pursuant to Ordinance 8273 to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, compare the signatures on a petition to signatures with the election records of the Boulder County Clerk or the Secretary of State? For the Measure ____ Against the Measure ____ Section 5. If this ballot measure is approved by the voters, the Charter shall be so amended, and the City Council may adopt any necessary amendments to the Boulder Revised Code to implement this change. Section 6. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 7. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Section 8. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. Attachment B – Proposed Ordinance 8273 with amendments passed on August 14, 2018 City Council Meeting Page 70 of 607 K:\CCCO\o-8273 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 19th day of June 2018. ___________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON SECOND READING, AMENDED AND PASSED, this 14th day of August 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON THIRD READING, PASSED AND ADOPTED, this 4th day of September 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk Attachment B – Proposed Ordinance 8273 with amendments passed on August 14, 2018 City Council Meeting Page 71 of 607 K:\CCCO\o-8274 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8274 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING SECTIONS 38, 45, AND 56 OF THE BOULDER CITY CHARTER TO PERMIT USE OF ELECTRONIC PETITIONS AND TO PERMIT ON-LINE ELECTRONIC SIGNING OR ENDORSEMENT OF INITIATIVE, REFERENDUM, AND RECALL PETITIONS; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the City of Boulder, County of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Sections 38, 45, and 56 of the City Charter to permit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall petitions. The material to be added to the Charter is shown by double underlining and material to be deleted is shown stricken through with solid lines. Section 3. Sections 38, 45, and 56 shall be amended to read as follows: Sec. 38. - Preparation of initiative petitions. Petitions shall be worded clearly and simply so the petition is not misleading or likely to cause confusion to voters. Petitions drafts shall be consistent with applicable law. The draftPetitions shall present the ballot measure in such manner that a vote for the measure would be a vote for the proposition and that a vote against the measure would be a vote against the proposition. Attachment C – Proposed Ordinance 8274 with amendments passed on August 14, 2018 City Council Meeting Page 72 of 607 K:\CCCO\o-8274 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (a) For paper petitions that are circulated by a person Ssignatures to initiative petitions need not all be on one paper, but the circulator of every such paper shall make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. With each signature shall be stated the place of residence of the signer, giving the street and number or other description sufficient to identify the place, and the date the signer signed the petition. All such papers pertaining to any one measure shall have written or printed thereon the names and addresses of at least five registered electors who shall be officially regarded as filing the petition and shall constitute a committee of the petitioners for the purposes hereinafter named. All such papers shall be filed in the office of the city clerk as one instrument. (b) Electronic petitions and on -line electronic signing or endorsement of petitions may be allowed as permitted by the Boulder Revised Code. Sec. 45. - Signatures to petition. The signatures thereto need not all be on one paper, but the circulator of every such paper shall make an affidavit that each signature appended thereto is the genuine signature of the person whose name it purports to be. With each signature shall be stated the place of residence of the signer, giving the street and number or other description sufficient to identify the place. All such papers shall be filed in the offic e of the city clerk as one instrument. A referendum petition need not contain the text of the measure designated therein and of which the repeal is sought. Electronic petitions and on -line electronic signing or endorsement of petitions may be allowed as permitted by the Boulder Revised Code. Sec. 56. - Petition for recall. . . . The signatures to a recall petition need not all be appended to one paper, but each person shall add to such person's signature such person's place of residence, giving the stree t and number. The circulator of each such paper shall make affidavit before an officer competent to administer oaths that the statements contained therein are true and that each signature appended to the paper is the genuine signature of the person whose n ame it purports to be. All papers composing said petition shall be assembled and filed as one instrument, with endorsements thereon of the names and addresses of three persons designated as filing said petition; provided, that prior to the issuance of any blank forms of petitions for removal, an affidavit shall be made by one or more registered electors, which affidavit shall state the name of the officer or officers sought to be removed and the grounds upon which the removal is sought, and such affidavit s hall be filed with the city clerk. Electronic petitions and on -line electronic signing or endorsement of petitions may be allowed as permitted by the Boulder Revised Code. Attachment C – Proposed Ordinance 8274 with amendments passed on August 14, 2018 City Council Meeting Page 73 of 607 K:\CCCO\o-8274 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 4. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: Ballot Question No. ___ Charter Amendments Related to Electronic Petitions Shall Sections 38, 45, and 56 of the City Charter be amended pursuant to Ordinance 8274 to allow the Boulder City Council to adopt ordinances that permit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall petitions? For the Measure ____ Against the Measure ____ Section 5. If this ballot measure is approved by the voters, the Charter shall be so amended, and the City Council may adopt any necessary amendments to the Boulder Revised Code to implement this change. Section 6. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 7. This ordinance is necessary to protect the public health, safety, and welf are of the residents of the city, and covers matters of local concern. Section 8. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. Attachment C – Proposed Ordinance 8274 with amendments passed on August 14, 2018 City Council Meeting Page 74 of 607 K:\CCCO\o-8274 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 19th day of June 2018. ___________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON SECOND READING, AMENDED AND PASSED, this 14th day of August 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON THIRD READING, PASSED AND ADOPTED, this 4th day of September 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk Attachment C – Proposed Ordinance 8274 with amendments passed on August 14, 2018 City Council Meeting Page 75 of 607 COUNCIL AGENDA ITEM MEETING DATE: August 14, 2018 TO: City Council FROM: David Gehr, Chief Deputy City Attorney DATE: August 14, 2018 AGENDA ITEM: 4B – 2nd Rdg Ordinance Campaign Finance and Elections Working Group – Attachment E – starting on page 64 of the City Council Special Meeting packet Below is revised language for Attachment E to the Agenda Memo regarding proposed amendments to Ordinance 8272 and Ordinance 8273: Below is additional alternative ordinance title, ballot question and Section 2. ordinance language in Ordinance 8272 which also incorporates changes to Section 177 of the B.R.C. (for your convenience see attached revised Attachment E with highlighted changes). ORDINANCE 8272 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING CITY CHARTER SECTIONS 29, 38A, 38B, 39, 40, 44, 48, 54, AND 56, AND 177 REGARDING THE CITY’S INITIATIVE, REFERENDUM AND RECALL PROCESSES; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 76 of 607 Ballot Question No. ___ Initiative, Referendum and Recall Process Charter Amendments Shall Sections 29, 38A, 38B, 39, 40, 44, 48, 54, and 56, and 177 of the City Charter be amended pursuant to Ordinance 8272 to: •clarify the actions required to be taken if a candidate withdraws from a city council election; •establish the number of signatures required for an initiative, referendum or recall to be at least ten percent of the average number of registered electors of the city who voted in the previous two municipal candidate elections so as to return this number closer to the range that was in place prior to changes in federal law and registration procedures; •amend the process and establish a fixed schedule for filing, review and consideration of an initiative, referendum, and recall petitions so that both petitioners and city staff will have clarity and certainty; •set standards for the city clerk’s examination of initiative petitions so that this examination is completed in a timely fashion and that the possibility of fraud is minimized; •provide for input from the petition committee to the city council prior to setting the ballot title to help ensure accuracy of the title; and •require that an ordinance passed` by vote of the people may only be amended by two-thirds of the council members present, and only if the amendments are consistent with the basic intent of the ordinance or are necessary to come into compliance with state or federal law? For the Measure ____ Against the Measure ____ Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Sections 29, 38A, 38B, 39, 40, 44, 48, and 54, 56, and 177 of the City Charter regarding the city’s initiative, referendum and recall processes. The material to be added to the Charter is shown by double underlining and material to be deleted is shown stricken through with solid lines. Sec. 177 - Disposal of open space land. No open space land owned by the city may be sold, leased, traded, or otherwise conveyed, nor may any exclusive license or permit on such open space land be given, until approval of such disposal by the city council. Such approval may be given only after ap proval of such disposal by the affirmative vote of at least three members of the open space board of trustees after a public hearing held with notice published at least ten days in advance in a newspaper of general circulation in the city, giving the locat ion of the land in question and the intended disposal Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 77 of 607 thereof. No open space land owned by the city shall be disposed of until sixty days following the date of city council approval of such disposal. If, within such sixty -day period, a petition meeting the requirements of Section 45 above and signed by registered electors of the city to be at least ten percent of the average number of the number of at least five percent of the registered electors of the city who voted in the previous two municipal candidate elections as of the day the petition is filed with the city clerk, requesting that such disposal be submitted to a vote of the electors, such disposal shall not become effective until the steps indicated in Sections 46 and 47 above have been followed. This section shall not apply to agricultural leases for crop or grazing purposes for a term o f five years or less. This section is to be construed liberally in favor of providing opportunities for the citizens of the city to refer measures proposing the disposal of any open space land. Below is additional alternative ordinance title, ballot question and Section 2. ordinance language for Ordinance 8273. The word “the” and two commas have been added (for your convenience see attached revised Attachment E with highlighted changes). Ordinance title only – …COMPARE THE SIGNATURES ON A PETITION TO SIGNATURES… Ordinance title, ballot question and Section 2. – …to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, compare the signatures on a petition… ORDINANCE 8273 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING SECTIONS 39, 46, AND 57 OF THE BOULDER CITY CHARTER TO REQUIRE THE CITY CLERK, TO THE EXTENT REASONABLY POSSIBLE AND SO AS TO ENSURE AUTHENTICIY, COMPARE THE SIGNATURES ON A PETITION TO SIGNATURES WITH THE ELECTION RECORDS OF THE BOULDER COUNTY CLERK OR THE SECRETARY OF STATEON FILE IN THE STATEWIDE ELECTIONS DATABASE; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 78 of 607 Ballot Question No. ___ Charter Provisions Related to Signature Verification Shall Sections 39, 46 and 57 of the City Charter be amended pursuant to Ordinance 8273 to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, to compare the signatures on a petition to signatures with the election records of the Boulder county Clerk or the Secretary of Stateon file in the statewide election database to ensure authenticity? Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Sections 39, 46, and 57 of the City Charter to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, to compare the signatures on a petition to signatures with the election records of the Boulder Clerk or Secretary of Stateon file in the statewide elections database. The material to be added to the Charter is shown by double underlining and material to be deleted is shown stricken through with solid lines. For your convenience, please see attached revised Attachment E that incorporates the above proposed changes which have been highlighted in yellow. Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 79 of 607 AMENDMENTS THAT HAVE BEEN PROPOSED BY COMMUNITY MEMBERS SINCE THE COMPLETION OF THE WORKING GROUP’S REPORT The below suggested revisions to Ordinance 8272 have been drafted to include proposed changes to the ordinance title, ballot question and Section 2. ordinance language. ORDINANCE 8272 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING CITY CHARTER SECTIONS 29, 38A, 38B, 39, 40, 44, 48, 54, AND 56, AND 177 REGARDING THE CITY’S INITIATIVE, REFERENDUM AND RECALL PROCESSES; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. Ballot Question No. ___ Initiative, Referendum and Recall Process Charter Amendments Shall Sections 29, 38A, 38B, 39, 40, 44, 48, 54, and 56, and 177 of the City Charter be amended pursuant to Ordinance 8272 to: • clarify the actions required to be taken if a candidate withdraws from a city council election; • establish the number of signatures required for an initiative, referendum or recall to be at least ten percent of the average number of registered electors of the city who voted in the previous two municipal candidate elections so as to return this number closer to the range that was in place prior to changes in federal law and registration procedures; • amend the process and establish a fixed schedule for filing, review and consideration of an initiative, referendum, and recall petitions so that both petitioners and city staff will have clarity and certainty; • set standards for the city clerk’s examination of initiative petitions so that this examination is completed in a timely fashion and that the possibility of fraud is minimized; • provide for input from the petition committee to the city council prior to setting the ballot title to help ensure accuracy of the title; and • require that an ordinance passed` by vote of the people may only be amended by two-thirds of the council members Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 80 of 607 present, and only if the amendments are consistent with the basic intent of the ordinance or are necessary to come into compliance with state or federal law? For the Measure ____ Against the Measure ____ Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Sections 29, 38A, 38B, 39, 40, 44, 48, and 54, 56, and 177 of the City Charter regarding the city’s initiative, referendum and recall processes. The material to be added to the Charter is shown by double underlining and material to be deleted is shown stricken through with solid lines. Sec. 177 - Disposal of open space land. No open space land owned by the city may be sold, leased, traded, or otherwise conveyed, nor may any exclusive license or permit on such open space land be given, until approval of such disposal by the city council. Such approval may be given only after ap proval of such disposal by the affirmative vote of at least three members of the open space board of trustees after a public hearing held with notice published at least ten days in advance in a newspaper of general circulation in the city, giving the locat ion of the land in question and the intended disposal thereof. No open space land owned by the city shall be disposed of until sixty days following the date of city council approval of such disposal. If, within such sixty -day period, a petition meeting the requirements of Section 45 above and signed by registered electors of the city to be at least ten percent of the average of the number of at least five percent of the registered electors of the city who voted in the previous two municipal candidate elections as of the day the petition is filed with the city clerk, requesting that such disposal be submitted to a vote of the electors, such disposal shall not become effective until the steps indicated in Sections 46 and 47 above have been followed. This section shall not apply to agricultural leases for crop or grazing purposes for a term of five years or less. This section is to be const rued liberally in favor of providing opportunities for the citizens of the city to refer measures proposing the disposal of any open space land. The below suggested revisions to Ordinance 8273 have been drafted to include proposed changes to the ordinance title, ballot question and Section 2. ordinance language. ORDINANCE 8273 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING SECTIONS 39, 46, AND 57 OF THE BOULDER CITY CHARTER TO REQUIRE THE CITY CLERK, TO THE EXTENT REASONABLY POSSIBLE AND SO AS TO ENSURE Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 81 of 607 AUTHENTICITY, COMPARE THE SIGNATURES ON A PETITION TO SIGNATURES WITH THE ELECTION RECORDS OF THE BOULDER COUNTY CLERK OR THE SECRETARY OF STATE ON FILE IN THE STATEWIDE ELECTIONS DATABASE; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. Ballot Question No. ___ Charter Provisions Related to Signature Verification Shall Sections 39, 46, and 57 of the City Charter be amended pursuant to Ordinance 8273 to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, to compare the signatures on a petition to signatures with the election records of the Boulder County Clerk or the Secretary of State on file in the statewide election database to ensure authenticity? For the Measure ____ Against the Measure ____ Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Sections 39, 46, and 57 of the City Charter to require the city clerk, to the extent reasonably possible and so as to ensure authenticity, to compare the signatures on a petition to signatures with the election records of the Boulder Clerk or Secretary of Stateon file in the statewide elections database. The material to be added to the Charter is shown by double underlining and material to be deleted is shown stricken through with solid lines. Sec. 46. - Certificate of petition. Within ten days after the filing of the petition the city clerk shall ascertain whether or not the petition is signed by registered electors of the ci ty to the number of at least ten percent of the registered electors of the city as of the day the petition was filed, and the clerk shall attach to such petition a certificate showing the result of such examination. If by the city clerk's certificate the petition is shown to be insufficient, it may be amended within ten days from the date of said certificate by the filing of supplementary petition papers with additional signatures. The city clerk shall within ten days after such amendment make like examina tion of the amended petition and certify the result thereof. The City Clerk shall verify signatures to the extent reasonably possible by comparison with the election records of the Boulder County Clerk or the Secretary of State. Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 82 of 607 Sec. 57. - Petition may be amended or new petition made. Within ten days from the filing of said petition the city clerk shall ascertain by examination thereof and of the registration books and election returns whether the petition is signed by the required number of registered electors and shall attach thereto a certificate showing the result of such examination. The clerk shall, if necessary, be allowed extra help. If the certificate shows the petition to be insufficient, the clerk shall, within five days, so notify in writing one or more of the persons designated on the petition as filing the same; and the petition may be amended at any time within ten days from the filing of the certificate. The city clerk shall, within ten days after such amendment, make like examination of t he amended petition and attach thereto a certificate of the result. If still insufficient or if no amendment is made, the clerk shall return the petition to one of the persons designated thereon as filing it, without prejudice, however, to the filing of a new petition for the same purpose. The City Clerk shall verify signatures to the extent reasonably possible by comparison with the election records of the Boulder County Clerk or the Secretary of State. The below suggested revisions to Ordinance 8274 have been drafted to include proposed changes to ordinance Section 2., ordinance title, so as to be more consistent with the ballot title, ballot title and charter language associated with sections 38, 45, and 56. The language permits the referendum and recall processes to use electronic petitions or on-line electronic signing or endorsement of petitions. ORDINANCE 8274 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING SECTIONS 38, 45, AND 56 OF THE BOULDER CITY CHARTER TO ALLOW FORPERMIT USE OF ELECTRONIC PETITIONS AND TO PERMIT ON-LINE ELECTRONIC SIGNING OR ENDORSEMENT OF INITIATIVE, REFERENDUM, AND RECALL PETITIONS THE USE OF ELECTRONIC SIGNING OF INITIATIVE PETITIONS ONLINE; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 83 of 607 Ballot Question No. ___ Charter Amendments Related to Electronic Petitions and Voter Identification Shall Sections 38, 45, and 56 of the City Charter be amended pursuant to Ordinance 8274 to allow the Boulder City Council to adopt ordinances that permit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall petitions? For the Measure ____ Against the Measure ____ Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Sections 38, 45, and 56 of the City Charter to allow forpermit use of electronic petitions and to permit on-line electronic signing or endorsement of initiative, referendum, and recall the use of electronic signing of initiative petitions online. The material to be added to the Charter is shown by double underlining and material to be deleted is shown stricken through with solid lines. Sec. 38. - Preparation of initiative petitions. Petitions shall be worded clearly and simply so the petition is not misleading or likely to cause confusion to voters. Petitions drafts shall be consistent with applicable law. The draftPetitions shall present the ballot measure in such manner that a vote for the measure would be a vote for the proposition and that a vote against the measure would be a vote against the proposition. (a) For paper petitions that are circulated by a person Ssignatures to initiative petitions need not all be on one paper, but the circulator of every such paper shall make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. With each signature shall be stated the place of residence of the signer, giving the street and number or other description sufficient to identify the place, and the date the signer signed the petition. All such papers pertaining to any one measure shall have written or printed thereon the names and addresses of at least five registered electors who shall be officially regarded as filing the petition and shall constitute a committee of the petitioners for the purposes hereinafter named. All such papers shall be filed in the office of the city clerk as one instrument. (b) Electronic petitions and on -line electronic signing or endorsement of petitions shall be allowed as permitted by the Boulder Revised Cod e. Sec. 45. - Signatures to petition. The signatures thereto need not all be on one paper, but the circulator of every such paper shall make an affidavit that each signature appended thereto is the genuine signature of the person whose name it purports to be. With each signature shall be state d the place of residence of the signer, giving the street and number or other description sufficient to identify the place. All such Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 84 of 607 papers shall be filed in the office of the city clerk as one instrument. A referendum petition need not contain the text of the measure designated therein and of which the repeal is sought. Electronic petitions and on -line electronic signing or endorsement of petitions shall be allowed as permitted by the Boulder Revised Code. Sec. 56. - Petition for recall. A petition signed by electors registered to vote for a successor to the incumbent sought to be removed equal in number to at least twenty -five percent of the last preceding vote cast within the city for all candidates for governor shall be addressed to the council an d filed with the city clerk. The city clerk shall make available sample forms to be utilized in formatting such petitions. The form of a recall petition shall be approved or disapproved by the city clerk, prior to its circulation, by the close of the secon d business day following the submission of the proposed petition for review. On the date on which a recall petition is approved, the clerk shall notify the officer sought to be recalled by mail or by electronic communication. All petitions shall be returne d and filed with the city clerk within thirty days from the date on which the clerk approves the form of a recall petition. When submitted to the clerk, the petition shall contain a general statement, of not more than two hundred words, listing the grounds on which the recall is sought. A copy of that statement, along with a statement of no more than two hundred words, if submitted, from the official against whom the recall petition is filed, shall be publicly posted or otherwise made available to members of the public in electronic or hard copy form at least twenty days prior to the holding of any recall election. The signatures to a recall petition need not all be appended to one paper, but each person shall add to such person's signature such person's pla ce of residence, giving the street and number. The circulator of each such paper shall make affidavit before an officer competent to administer oaths that the statements contained therein are true and that each signature appended to the paper is the genuin e signature of the person whose name it purports to be. All papers composing said petition shall be assembled and filed as one instrument, with endorsements thereon of the names and addresses of three persons designated as filing said petition; provided, that prior to the issuance of any blank forms of petitions for removal, an affidavit shall be made by one or more registered electors, which affidavit shall state the name of the officer or officers sought to be removed and the grounds upon which the remova l is sought, and such affidavit shall be filed with the city clerk. Electronic petitions and on -line electronic signing or endorsement of petitions shall be allowed as permitted by the Boulder Revised Code. Attachment D – Errata Memorandum from the August 14, 2018 council meeting Item 3G - 3rd Rdg Ordinance Campaign Finance and Elections Working Group City Council Meeting Page 85 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E T hird reading and consideration of a motion to adopt Ordinance 8269 submitting to the registered electors of the C ity of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of adding a new Section 84B to the Boulder C ity C harter to establish the Housing Advisory Board consisting of seven members; if the measure passes amending Section 2-3-24, "Housing Advisory Board," B.R.C . 1981, to allow for seven members; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. P RI MARY STAF F C ON TAC T Tom C arr, C ity Attorney, 303.441.3020 RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Motion to adopt Ordinance 8269 submitting to the registered electors of the C ity of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of adding a new Section 84B to the Boulder C ity Charter to establish the Housing Advisory Board consisting of seven members; if the measure passes amending Section 2-3-24, "Housing Advisory Board," B.R.C. 1981, to allow for seven members; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details B RI E F H I STO RY O F I T E M AT TAC H ME N T S: Description Memo and Attachment City Council Meeting Page 86 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Third reading and consideration of a motion to adopt Ordinance 8269 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of adding a new Section 84B to the Boulder City Charter to establish the Housing Advisory Board consisting of seven members; if the measure passes amending Section 2-3-24, “Housing Advisory Board,” B.R.C. 1981, to allow for seven members; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. PRESENTERS Jane S. Brautigam, City Manager Mary Ann Weideman, Deputy City Manager Thomas A. Carr, City Attorney EXECUTIVE SUMMARY On March 20, 2018, the council adopted Ordinance 8239 creating the Housing Advisory Board. Under Charter Section 130, unless otherwise specified, a city advisory commission is limited to five members. Council members expressed concern that limiting the Housing Advisory Board to five members would limit the diversity of membership necessary to facilitate the board’s mission. Accordingly, council directed staff to propose a charter measure creating the Housing Advisory Board and expanding the membership to allow for seven members. The proposed ordinance would amend the Charter to add a new Section 84B creating a Housing Advisory Board with seven members. The proposed ordinance would also, if the measure passes, amend Section 2-3-24 of the Boulder Revised Code to increase the board’s membership to seven. Item 3H - 3rd Rdg Ordinance Section 84B City Council Meeting Page 87 of 607 STAFF RECOMMENDATION Suggested Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt Ordinance 8269 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of adding a new Section 84B to the Boulder City Charter to establish the Housing Advisory Board consisting of seven members; if the measure passes amending Section 2-3-24, “Housing Advisory Board,” B.R.C. 1981, to allow for seven members; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS • Economic – The provision and regulation of housing is important to any community’s economic health. This is particularly true in Boulder. Adding diverse perspectives to the Housing Advisory Board will support this goal. • Environmental – Preserving and protecting the natural environment depends in many ways on preserving and managing the built environment. • Social – Adding additional diversity of views to the board provides an opportunity to hear voices not currently represented. OTHER IMPACTS • Fiscal – There is a marginal cost for each ballot measure. Funding for ballot measures is anticipated in the city’s budget. • Staff time – Ballot measures are included in current staff work plans. BOARD AND COMMISSION FEEDBACK This change was recommended by the city council’s charter committee. BACKGROUND Charter Section 130 governs the city’s advisory commissions. It provides that advisory commissions shall consist of five members. The charter also includes specific provisions creating the Library Commission (Section 130), the Planning Board (Section 74), the Board of Zoning Adjustment (Section 84A), the Parks and Recreation Advisory Board (Section 157), the Open Space Board of Trustees (Section 172) and the Electric Utilities Board (Section 185). The Planning Board and the Parks and Recreation Advisory Board have Item 3H - 3rd Rdg Ordinance Section 84B City Council Meeting Page 88 of 607 seven members. The Electric Utilities Board has nine members. All other boards have five members, whether specifically mentioned in the charter or not. In March 2018 the council created the Housing Advisory Board and appointed the first five members. Because of the myriad of issues relating to housing, the council expressed an interest in creating a larger board to bring together a greater diversity of voices. Accordingly, council asked staff to bring forward a ballot measure creating the Housing Advisory Board and setting the membership at seven. The proposed ordinance is staff’s proposal to achieve this goal. The proposed ordinance would also, if the measure passes, amend Section 2-3-24 to change the membership from five members to seven. This would give the council the option, if it chooses, to appoint two additional members as soon as the election results are certified, if the result is in favor of the measure. The change to the code is not part of the ballot measure itself, but a council ordinance effective only if the measure passes. It would not be a people’s ordinance. At second reading council members questioned whether the Housing Advisory Board should be included in the charter. Members suggested that the charter be amended only to allow for seven members on the Housing Advisory Board. If council wishes to take this approach, council should pass the substitute version of Ordinance 8271 in Attachment B to the memorandum relating to Ordinance 8271. In that case, council should not adopt Ordinance 8269 on third reading. ATTACHMENTS Attachment A – Proposed Ordinance 8269 Item 3H - 3rd Rdg Ordinance Section 84B City Council Meeting Page 89 of 607 K:\CCCO\o-8269 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8269 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF ADDING A NEW SECTION 84B TO THE BOULDER CITY CHARTER TO ESTABLISH THE HOUSING ADVISORY BOARD CONSISTING OF SEVEN MEMBERS; IF THE MEASURE PASSES AMENDING SECTION 2-3-24, “HOUSING ADVISORY BOARD,” B.R.C. 1981, TO ALLOW FOR SEVEN MEMBERS; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the City of Boulder, County of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Section 84 of the City Charter to establish the Housing Advisory Board consisting of seven members. Section 3. A new section 84B is added to read as follows: Sec. 84B. – Housing Advisory Board. There shall be an advisory commission known as the Housing Advisory Board consisting of seven members with such powers, jurisdiction and authority as the city council shall provide by ordinance related to housing issues. Section 4. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: Attachment A – Proposed Ordinance 8269 City Council Meeting Page 90 of 607 K:\CCCO\o-8269 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ballot Question No. ___ Charter Provisions Related to Housing Advisory Board Shall the Charter be amended to add a new Section 84B pursuant to Ordinance 8269 to establish the Housing Advisory Board consisting of seven members? For the Measure ____ Against the Measure ____ Section 5. If this ballot measure is approved by the voters, the Charter shall be so amended, and Section 2-3-24, “Housing Advisory Board,” B.R.C. 1981, shall be amended to read as follows: 2-3-24. - Housing Advisory Board. (a) The City of Boulder Housing Advisory Board consists of seven five members appointed by City Council for five-year terms. At the time of appointment, at least one member will be a tenant and at least one shall be a homeowner. The board members who are first appointed shall be designated to serve for staggered terms so that the term of one board member expires each year. . . . Section 6. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 7. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Section 8. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. Attachment A – Proposed Ordinance 8269 City Council Meeting Page 91 of 607 K:\CCCO\o-8269 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 19th day of June 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON SECOND READING, AMENDED AND PASSED, this 14th day of August 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON THIRD READING, PASSED AND ADOPTED, this 4th day of September 2018. _________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk Attachment A – Proposed Ordinance 8269 City Council Meeting Page 92 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E T hird reading and consideration of a motion to adopt O rdinance 8270 submitting to the registered electors of the C ity of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 78 of the Boulder C ity C harter to change the time for the planning department to submit its recommendations for public improvements from sixty days to thirty days before the public hearing to be consistent with the city’s budgeting process; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. P RI MARY STAF F C ON TAC T Tom C arr, C ity Attorney, 303.441.3020 RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Motion to adopt Ordinance 8270 submitting to the registered electors of the C ity of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 78 of the Boulder C ity Charter to change the time for the planning board to submit its recommendations for public improvements from sixty days to thirty days before the public hearing to be consistent with the city’s budgeting process; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. AT TAC H ME N T S: Description Memo and Attachment City Council Meeting Page 93 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Third reading and consideration of a motion to adopt Ordinance 8270 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 78 of the Boulder City Charter to change the time for the Planning Department to submit its recommendations for public improvements from sixty days to thirty days before the submission of the budget to be consistent with the city’s budgeting process; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. PRESENTERS Jane S. Brautigam, City Manager Mary Ann Weideman, Deputy City Manager Thomas A. Carr, City Attorney EXECUTIVE SUMMARY Charter Section 78 requires the planning department to submit recommendations for public improvements sixty days before the city manager’s submission of the budget. Section 93 requires the city manager to submit the budget at least three months prior to the end of the fiscal year. Section 95 requires the council to pass an annual appropriation ordinance prior to December 1. The city manager submits the budget as a first reading ordinance. Council’s practice has been to hold public hearings on each reading of the budget. Staff has interpreted the submission of the budget to be the submission of the first reading ordinance. Generally, council conducts the first reading of the budget at the first meeting in October. Item 3I - 3rd Rdg Ordinance Section 78 City Council Meeting Page 94 of 607 STAFF RECOMMENDATION Suggested Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt Ordinance 8270 submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 78 of the Boulder City Charter to change the time for the Planning Department to submit its recommendations for public improvements from sixty days to thirty days before the submission of the budget to be consistent with the city’s budgeting process; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS •Economic – An informed and transparent budget process is important to the economic health of the community. •Environmental – Preserving and protecting the natural environment depends in many ways on preserving and managing the city’s resources, including specifically prioritizing capital expenditures. •Social – A well-informed budget process is important to the social fabric of the community. OTHER IMPACTS •Fiscal – There is a marginal cost for each ballot measure. Funding for ballot measures is anticipated in the city’s budget. •Staff time – Ballot measures are included in current staff work plans. BOARD AND COMMISSION FEEDBACK This change was recommended by the city council’s charter committee. Staff sent emails to the members of the planning board asking if there were any concerns with the proposed revision to the CIP timing and if they wanted a separate meeting to discuss further. No one expressed concerns or requested a meeting. BACKGROUND Under the current budget process, the Department of Planning, Housing and Sustainability is required to make any recommendations regarding capital projects no later than the beginning of August. The department relies on the recommendations of the Planning Item 3I - 3rd Rdg Ordinance Section 78 City Council Meeting Page 95 of 607 Board. Charter Section 78, adopted in 1951, has been interpreted by staff to mean the Planning Board must review and pass along their recommended capital improvement program (“CIP”) 60 days prior to the first public hearing on the budget. Practically speaking, the 60-day requirement requires departments to begin developing their CIP budget in late February or early March, prior to receiving the previous year’s ending financial status, let alone updated projections for current and future years. A principal reason for this extended time frame is the need to review the CIP with respective boards and the executive budget team prior to Planning Board consideration. Additionally, there are additional challenges to linking the full budget picture to council because staff develops the CIP and the operating budget on different timelines. The council charter committee recommended changing the 60-day period to a 30-day period. The proposed change would allow the development of the CIP to be closer aligned with the overall budget and allow for more accurate revenue projections to be incorporated into the CIP. ATTACHMENTS Attachment A – Proposed Ordinance 8270 Item 3I - 3rd Rdg Ordinance Section 78 City Council Meeting Page 96 of 607 K:\CCCO\o-8270 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8270 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING SECTION 78 OF THE BOULDER CITY CHARTER TO CHANGE THE TIME FOR THE PLANNING DEPARTMENT TO SUBMIT ITS RECOMMENDATIONS FOR PUBLIC IMPROVEMENTS FROM SIXTY DAYS TO THIRTY DAYS BEFORE THE SUBMISSION OF THE BUDGET TO BE CONSISTENT WITH THE CITY’S BUDGETING PROCESS; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the City of Boulder, County of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Section 78 of the City Charter to change the time for the Planning Department to submit its recommendations for public improvements from sixty days to thirty days before the submission of the budget to be consistent with the city’s budgeting process. The material to be added to the Charter is shown by underlining and material to be deleted is shown stricken through with solid lines. Section 3. Section 78 shall be amended to read as follows: Sec. 78. - Functions. The planning department shall: Attachment A – Proposed Ordinance 8270 City Council Meeting Page 97 of 607 K:\CCCO\o-8270 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (a) Prepare and recommend to the city council a general plan, with necessary maps, plats, charts, and descriptive and explanatory materials, for the physical improvement and development of the city, including therein, (1) The general location, character, and extent of streets, bridges, parks, waterways, and other public ways, grounds, and spaces; (2) The general location of public buildings and other public property, within and without the city limits, including watersheds, water systems, reservoirs, sewer and drainage systems, facilities for the sanitary disposal of garbage and other wastes, airports, vehicle parking facilities, and all other public properties and facilities necessary for the proper development of the city; (3) The general location and extent of public utilities, including public transportation facilities, whether publicly or privately owned; (4) The removal, relocation, widening, extension, narrowing, vacation, abandonment, or change of use of existing or future public ways, grounds, spaces, buildings, property, or utilities; (5) An adequate and equitable system of financing public improvements; (b) Review the general plan periodically and recommend to the city council desirable amendments and additions to the plan; (c) Submit annually to the city manager, not less than sixtythirty days prior to the date for submission of the city manager's proposed budget to the city council, a list of recommended capital improvements to be undertaken during the forthcoming six-year period; . . . Section 4. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: Ballot Question No. ___ Charter Provision Related to Planning Department Recommendations for Public Improvements Shall Section 78 of the Charter be amended pursuant to Ordinance 8270 to change the time for the Planning Department to submit its recommendations for public improvements from sixty days to thirty days before the submission of the budget to be consistent with the city’s budgeting process? For the Measure ____ Against the Measure ____ Attachment A – Proposed Ordinance 8270 City Council Meeting Page 98 of 607 K:\CCCO\o-8270 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 5. If this ballot measure is approved by the voters, the Charter shall be so amended, and the City Council may adopt any necessary amendments to the Boulder Revised Code to implement this change. Section 6. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 7. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Section 8. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 19th day of June 2018. __________________________________ Suzanne Jones Mayor Attest: ___________________________________ Lynnette Beck City Clerk Attachment A – Proposed Ordinance 8270 City Council Meeting Page 99 of 607 K:\CCCO\o-8270 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 READ ON SECOND READING, PASSED, this 14th day of August 2018. _______________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON THIRD READING, PASSED AND ADOPTED, this 4th day of September 2018. _______________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk Attachment A – Proposed Ordinance 8270 City Council Meeting Page 100 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E T hird reading and consideration of a motion to adopt Ordinance 8271 (Attachment A) submitting to the registered electors of the C ity of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder C ity C harter to allow council to set the number of members of any new advisory commission as five or seven when forming the commission, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details; or in the alternative: T hird reading and consideration of a motion to adopt by emergency Ordinance 8271 (Attachment B) submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder C ity Charter to allow council to set the number of any new advisory commission as five or seven when forming the commission, to permit a board established in 2018 to consist of seven members, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. P RI MARY STAF F C ON TAC T Tom C arr, C ity Attorney, 303.441.3020 RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Motion to adopt Ordinance 8271 (Attachment A) submitting to the registered electors of the C ity of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder C ity Charter to allow council to set the number of members of any new advisory commission as five or seven when forming the commission, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details; or in the alternative: City Council Meeting Page 101 of 607 Motion to adopt by emergency Ordinance 8271 (Attachment B ) submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder City C harter to allow council to set the number of any new advisory commission as five or seven when forming the commission, to permit a board established in 2018 to consist of seven members, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. AT TAC H ME N T S: Description Memo and Attachment City Council Meeting Page 102 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Third reading and consideration of a motion to adopt Ordinance 8271 (Attachment A) submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder City Charter to allow council to set the number of members of any new advisory commission as five or seven when forming the commission, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details; or in the alternative: Third reading and consideration of a motion to adopt by emergency Ordinance 8271 (Attachment B) submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder City Charter to allow council to set the number of any new advisory commission as five or seven when forming the commission, to permit a board established in 2018 to consist of seven members, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. Item 3J - 3rd Rdg Ordinance Section 130 City Council Meeting Page 103 of 607 PRESENTERS Jane S. Brautigam, City Manager Mary Ann Weideman, Deputy City Manager Thomas A. Carr, City Attorney EXECUTIVE SUMMARY Charter Section 130 establishes the requirements for city advisory commissions. Section 130 provides that all advisory commissions shall consist of “five city residents, appointed by the city council, not all of one sex.” In March 2018, the council created the Housing Advisory Board. Council members expressed an interest in having seven members on the board. Council will consider Ordinance 8269 to establish a Housing Advisory Board with seven members. During discussions, council considered changing Charter Section 130 to change the number of members on all advisory commissions. Council members expressed concern about changing the balance on current commissions. Accordingly, council requested that staff develop a ballot measure to allow future councils to set the number of commission members at either five or seven at the time any commission is created. Section 130 currently establishes a majority of the commissions at three members, which is, of course, one more than half of five members. If council allows for commissions of seven, an adjustment of the majority provision is necessary as well. In addition, the Council Charter Committee recommended changing the word “sex” to “gender identity” to allow individuals self-determination when identifying one’s personal experience of one’s own gender. On second reading, council amended the ordinance to clarify that the ability to create larger boards or commissions would apply to any created after January 1, 2019. During council consideration on second reading of Ordinance 8269 creating the Housing Advisory Board, council members questioned whether the board should be established in the Charter. Members asked for an option to expand the size of the Housing Advisory Board without including the board in the Charter. This change requires an amendment to Section 130, which is the subject of Ordinance 8271. If council wishes to take this approach, council should adopt the emergency version of Ordinance 8271, Attachment B, and not adopt Ordinance 8269 on third reading. Item 3J - 3rd Rdg Ordinance Section 130 City Council Meeting Page 104 of 607 STAFF RECOMMENDATION Suggested Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt Ordinance 8271 (Attachment A) submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder City Charter to allow council to set the number of members of any new advisory commission as five or seven when forming the commission, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. or in the alternative: Motion to adopt by emergency Ordinance 8271 (Attachment B) submitting to the registered electors of the City of Boulder at the municipal coordinated election to be held on Tuesday, November 6, 2018, the question of amending Section 130 of the Boulder City Charter to allow council to set the number of any new advisory commission as five or seven when forming the commission, to permit a board established in 2018 to consist of seven members, change the reference of “sex” to “gender identity,” and changing the requirement for a majority; setting forth the ballot title; specifying the form of the ballot and other election procedures; and setting forth related details. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS • Economic – None identified. • Environmental – None identified. • Social – It will support inclusiveness, which is an important community value. OTHER IMPACTS • Fiscal – There is a marginal cost for each ballot measure. Funding for ballot measures is anticipated in the city’s budget. • Staff time – Ballot measures are included in current staff work plans. BOARD AND COMMISSION FEEDBACK The change of “sex” to “gender identity” was recommended by the city council’s charter committee. Item 3J - 3rd Rdg Ordinance Section 130 City Council Meeting Page 105 of 607 ATTACHMENTS Attachment A – Proposed Ordinance 8271 Attachment B – Proposed Emergency version Ordinance 8271 allowing for expansion of the Housing Advisory Board Item 3J - 3rd Rdg Ordinance Section 130 City Council Meeting Page 106 of 607 K:\CCCO\o-8271 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8271 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING SECTION 130 OF THE BOULDER CITY CHARTER TO ALLOW COUNCIL TO SET THE NUMBER OF ANY NEW ADVISORY COMMISSION AS FIVE OR SEVEN WHEN FORMING THE COMMISSION, CHANGE THE REFERENCE OF “SEX” TO “GENDER IDENTITY,”AND CHANGING THE REQUIREMENT FOR A MAJORITY; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the City of Boulder, County of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Section 130 of the City Charter to allow council to set the number of any new advisory commission as five or seven when forming the commission, change the reference of “sex” to “gender identity,” and changing the requirement for a majority. The material to be added to the Charter is shown by underlining and material to be deleted is shown stricken through with solid lines. Section 3. Section 130 shall be amended to read as follows: Sec. 130. - General provisions concerning advisory commissions. At any time after the organization of the council elected under the provisions of this charter, the council by ordinance may create and provide for such advisory commissions as it may deem advisable; provided, that a library commission is hereby created, and the council shall, within ninety days from its organization, appoint the members thereof. Attachment A – Proposed Ordinance 8271 City Council Meeting Page 107 of 607 K:\CCCO\o-8271 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Except as otherwise specified in this charter, Eeach of the existing advisorysuch commissions, including the library commission, shall be composed of five city residents., For any advisory commissions appointed after January 1, 2019, the council shall specify in the ordinance forming the advisory commission whether the commission shall have fiv e or seven members. All members of a commission shall be appointed by the council, not all of one sexgender identity, who are well known for their ability, probity, public spirit, and particular fitness to serve on such respective commissions and who are at least ei ghteen years old and who have resided in the city of Boulder for at least one year immediately prior to their appointment to serve on the commission. When first constituted, the council shall designate the terms for which each member is appointed so that t he term of one commissioner shall expire on December 31 of each year; and thereafter the council shall by March of each year appoint one member to serve for a term of five years. The council shall have the power to remove any commissioner for non-attendance to duties or for cause. All vacancies shall be filled by the council. When first appointed and annually thereafter following the council's appointment of the commissioner, each commission shall organize by appointing a chair, a vice -chair, and a secretary; all commissioners shall serve without compensation, but the secretary of any commission, if not a member, may receive a salary to be fixed by the council; any commission shall have power to make rules for the conduct of its business. All commissioners s hall serve until their successors are appointed. All commissions shall hold regular monthly meetings. Special meetings may be called at any time upon due notice by a majority of the three members. A majority of the Three members shall constitute a quorum, and the affirmative vote of at least a majority of thethree members shall be necessary to authorize any action by the commission. All commissions shall keep accounts and records of their respective transactions, and at the end of each quarter or more often, if requested by the council, and at the end of each fiscal year shall furnish to the council a detailed report of receipts and expenditures and a statement of other business transacted. The chair of a commission shall preside at the meetings thereof and sign, execute, acknowledge, and deliver for the commission all contracts and writings of every kind required or authorized to be signed or delivered by the commission. The signature of the chair shall be attested by the secretary. The commissions shall have the right to the floor of the council to speak on plans and expenditures proposed or to appeal for a decision in a failure to agree with another commission or the manager. Wherever there shall be suitable accommodations in the city building, the offices of the commissions shall be maintained there. Section 4. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: Attachment A – Proposed Ordinance 8271 City Council Meeting Page 108 of 607 K:\CCCO\o-8271 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ballot Question No. ___ Charter Provisions Related to Advisory Commissions Shall Section 130 of the Charter be amended pursuant to Ordinance 8271 to: • allow council to set the number of any new advisory commission as five or seven when forming the commission; • change the criteria for what constitutes a majority to accommodate boards of different sizes; and • change the reference of “sex” to “gender identity?” For the Measure ____ Against the Measure ____ Section 5. If this ballot measure is approved by the voters, the Charter shall be so amended, and the City Council may adopt any necessary amendments to the Boulder Revised Code to implement this change. Section 6. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 7. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Section 8. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. Attachment A – Proposed Ordinance 8271 City Council Meeting Page 109 of 607 K:\CCCO\o-8271 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 19th day of June 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON SECOND READING, AMENDED AND PASSED, this 14th day of August 2018. _________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk Attachment A – Proposed Ordinance 8271 City Council Meeting Page 110 of 607 K:\CCCO\o-8271 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 READ ON THIRD READING, PASSED AND ADOPTED, this 4th day of September 2018. _________________________________ Suzanne Jones Mayor Attest: ________________________________ Lynnette Beck City Clerk Attachment A – Proposed Ordinance 8271 City Council Meeting Page 111 of 607 K:\CCCO\o-8271 emergency version 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8271 AN EMERGENCY ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, THE QUESTION OF AMENDING SECTION 130 OF THE BOULDER CITY CHARTER TO ALLOW COUNCIL TO SET THE NUMBER OF ANY NEW ADVISORY COMMISSION AS FIVE OR SEVEN WHEN FORMING THE COMMISSION, TO PERMIT A BOARD ESTABLISHED IN 2018 TO CONSIST OF SEVEN MEMBERS, CHANGE THE REFERENCE OF “SEX” TO “GENDER IDENTITY,” AND CHANGING THE REQUIREMENT FOR A MAJORITY; SETTING FORTH THE BALLOT TITLE; SPECIFYING THE FORM OF THE BALLOT AND OTHER ELECTION PROCEDURES; AND SETTING FORTH RELATED DETAILS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. A municipal coordinated election will be held in the City of Boulder, County of Boulder and state of Colorado, on Tuesday, November 6, 2018. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder that will allow voters to consider the following amendment to Section 130 of the City Charter to allow council to set the number of any new advisory commission as five or seven when forming the commission, to permit a board established in 2018 to consist of seven members, change the reference of “sex” to “gender identity,” and changing the requirement for a majority. The material to be added to the Charter is shown by underlining and material to be deleted is shown stricken through with solid lines. Attachment B – Proposed Emergency version Ordinance 8271 allowing for expansion of the Housing Advisory Board City Council Meeting Page 112 of 607 K:\CCCO\o-8271 emergency version 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 3. Section 130 shall be amended to read as follows: Sec. 130. - General provisions concerning advisory commissions. At any time after the organization of the council elected under the provisions of this charter, the council by ordinance may create and provide for such advisory commissions as it may deem advisable; provided, that a library commission is hereby created, a nd the council shall, within ninety days from its organization, appoint the members thereof. Except as otherwise specified in this charter, Eeach of the existing advisorysuch commissions, including the library commission, shall be composed of five city residents., For any advisory commissions appointed after January 1, 2019, the council shall specify in the ordinance forming the advisory commission whether the commission shall have fiv e or seven members, for any advisory commission created by ordinance adopted in March 2018, the council may, by subsequent ordinance, specify that the commission shall have seven members . All members of a commission shall be appointed by the council, not all of one sexgender identity, who are well known for their ability, probity, public spirit, and particular fitness to serve on such respective commissions and who are at least eighteen years old and who have resided in the city of Boulder for at least one year immediately prior to th eir appointment to serve on the commission. When first constituted, the council shall designate the terms for which each member is appointed so that the term of one commissioner shall expire on December 31 of each year; and thereafter the council shall by March of each year appoint one member to serve for a term of five years. The council shall have the power to remove any commissioner for non -attendance to duties or for cause. All vacancies shall be filled by the council. When first appointed and annually thereafter following the council's appointment of the commissioner, each commission shall organize by appointing a chair, a vice -chair, and a secretary; all commissioners shall serve without compensation, but the secretary of any commission, if not a membe r, may receive a salary to be fixed by the council; any commission shall have power to make rules for the conduct of its business. All commissioners shall serve until their successors are appointed. All commissions shall hold regular monthly meetings. Spe cial meetings may be called at any time upon due notice by a majority of the three members. A majority of the Three members shall constitute a quorum, and the affirmative vote of at least a majority of thethree members shall be necessary to authorize any action by the commission. All commissions shall keep accounts and records of their respective transactions, and at the end of each quarter or more often, if requested by the council, and at the end of each fisc al year shall furnish to the council a detailed report of receipts and expenditures and a statement of other business transacted. The chair of a commission shall preside at the meetings thereof and sign, execute, acknowledge, and deliver for the commissio n all contracts and writings of every kind required or authorized to be signed or delivered by the commission. The signature of the chair shall be attested by the secretary. Attachment B – Proposed Emergency version Ordinance 8271 allowing for expansion of the Housing Advisory Board City Council Meeting Page 113 of 607 K:\CCCO\o-8271 emergency version 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The commissions shall have the right to the floor of the council to speak on plan s and expenditures proposed or to appeal for a decision in a failure to agree with another commission or the manager. Wherever there shall be suitable accommodations in the city building, the offices of the commissions shall be maintained there. Section 4. The official ballot shall contain the following ballot title, which shall also be the designation and submission clause for the measure: Ballot Question No. ___ Charter Provisions Related to Advisory Commissions Shall Section 130 of the Charter be amended pursuant to Ordinance 8271 to: • allow council to set the number of any new advisory commission as five or seven when forming the commission; • allow council to increase the size of the Housing Advisory Board from five to seven members; • change the criteria for what constitutes a majority to accommodate boards of different sizes; and • change the reference of “sex” to “gender identity?” For the Measure ____ Against the Measure ____ Section 5. If this ballot measure is approved by the voters, the Charter shall be so amended, and the City Council may adopt any necessary amendments to the Boulder Revised Code to implement this change. Section 6. If any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, such decision shall not affect any of the remaining provisions of this ordinance. Section 7. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Attachment B – Proposed Emergency version Ordinance 8271 allowing for expansion of the Housing Advisory Board City Council Meeting Page 114 of 607 K:\CCCO\o-8271 emergency version 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 8. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. Section 9. The City Council finds that this ordinance is necessary for the immediate preservation of the public peace, health, or property. The City Council amended the ordinance on final reading. This ordinance includes a ballot measure. Emergency passage is necessary to allow time for this matter to be placed on the November 6, 2018 ballot. INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY, this 19th day of June 2018. __________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk READ ON SECOND READING, AMENDED AND PASSED, this 14th day of August 2018. _________________________________ Suzanne Jones Mayor Attest: __________________________________ Lynnette Beck City Clerk Attachment B – Proposed Emergency version Ordinance 8271 allowing for expansion of the Housing Advisory Board City Council Meeting Page 115 of 607 K:\CCCO\o-8271 emergency version 3rd Rdg-2875.docx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 READ ON THIRD READING, AMENDED, PASSED AND ADOPTED, AS AN EMERGENCY MEASURE BY TWO-THIRDS COUNCILMEMBERS PRESENT, this 4th day of September 2018. _________________________________ Suzanne Jones Mayor Attest: ________________________________ Lynnette Beck City Clerk Attachment B – Proposed Emergency version Ordinance 8271 allowing for expansion of the Housing Advisory Board City Council Meeting Page 116 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E C onsideration of the following items related to two properties in Crestview East (case number LUR2018-00044): 1. Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8288 vacating and authorizing the city manager to execute a deed of vacation for a 10-foot wide portion of Vine Avenue right-of-way located adjacent to the property at 2100 Violet Avenue 2. Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8289 vacating and authorizing the city manager to execute a deed of vacation for a portion of Vine Avenue right-of-way located adjacent to the property at 1917 Upland Avenue P RI MARY STAF F C ON TAC T BrieAnna Simon, Associate Planner RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E C onsideration of the following items related to two properties in Crestview East (case number LUR2018-00044): 1. Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8288 vacating and authorizing the city manager to execute a deed of vacation for a 10-foot wide portion of Vine Avenue right-of-way located adjacent to the property at 2100 Violet Avenue 2. Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8289 vacating and authorizing the city manager to execute a deed of vacation for a portion of Vine Avenue right-of-way located adjacent to the property at 1917 Upland Avenue B RI E F H I STO RY O F I T E M On February 2, 2018 the City C ouncil approved annexation agreement amendments for 2100 Violet Avenue and 1917 Upland Avenue, which reduced the required dedication of right-of- way for future Vine Avenue. T his approval allows the applicant to request a vacation of right- City Council Meeting Page 117 of 607 of-way for Vine Avenue. AT TAC H ME N T S: Description Memo and Attachments City Council Meeting Page 118 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE: Consideration of the following items related to two properties in Crestview East (case number LUR2018-00044): (1)Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8288 vacating and authorizing the city manager to execute a deed of vacation for a 10-foot wide portion of Vine Avenue right-of-way located adjacent to the property at 2100 Violet Ave. (2)Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8289 vacating and authorizing the city manager to execute a deed of vacation for a portion of Vine Avenue right-of-way located adjacent to the property at 1917 Upland Ave. Applicant: Robert Naumann Owners: 1917 Upland LLC, Robert Naumann PRESENTERS Jane S. Brautigam, City Manager Tanya Ange, Deputy City Manager Jim Robertson, Director of Planning, Housing & Sustainability Charles Ferro, Development Review Manager BrieAnna Simon, Associate Planner EXECUTIVE SUMMARY The applicant and property owners request the vacation of approximately 10 feet of Vine Avenue right-of-way adjacent to 2100 Violet Ave. and a portion of right-of-way adjacent to 1917 Upland Ave. The right-of-way was dedicated as a part of the annexations of these properties in 1997. On February 2, 2018 the City Council approved annexation agreement amendments for 2100 Violet Ave. and 1917 Upland Ave., which reduced the required dedication of right-of-way for future Vine Avenue. This approval allows the applicant to request a vacation of portions of the Vine Avenue right-of-way. Existing right-of-way must be vacated by ordinance, with City Council approval. Refer to Attachments A and B for the draft ordinances and Attachments C and D for the draft deeds of vacation. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 119 of 607 STAFF RECOMMENDATION Staff finds that the criteria of section 8-6-9, “Vacation of Public Rights-of-Way and Public Access Easements,” B.R.C. 1981 can be met and recommends that the City Council take the following action: Suggested Motion Language: Staff requests council consideration of this matter and action in the form of the following two motions: 1. Motion to introduce and order published by title only, Ordinance 8288 vacating and authorizing the City Manager to execute a deed of vacation for a 10-foot wide portion of Vine Avenue right-of-way, City of Boulder, County of Boulder, Colorado located adjacent to 2100 Violet Ave., and setting forth related details. 2. Motion to introduce and order published by title only, Ordinance 8289 vacating and authorizing the City Manager to execute a deed of vacation for a portion of Vine Avenue right-of-way, City of Boulder, County of Boulder, Colorado generally located at 1917 Upland Ave., and setting forth related details. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS •Economic: The vacation at 1917 Upland Ave. allows for the creation of two lots north of the dedicated right of way for Vine Avenue, where one is currently allowed. The minimum lot size in the RL-1 zone district is 7,000 square feet and the area of the property is currently under 14,000 square feet. The additional unit could add to the tax base of the community. •Environmental: None identified. •Social: As described above, the vacation at 1917 Upland Ave. could add residential units to the city’s inventory. OTHER IMPACTS •Fiscal: No impact. •Staff time: The vacation application has been processed through the provisions of a standard vacation process and is within normal staff work plans. BOARD AND COMMISSION FEEDBACK Notification was sent to the Planning Board on Aug. 30, 2018 in conformance with Section 79 of the Boulder City Charter. PUBLIC FEEDBACK All notice requirements of section 9-4-3, “Public Notice Requirements,” B.R.C. 1981 have been met. Public notice of this proposed vacations was sent to property owners within 600 feet of the Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 120 of 607 project on June 6, 2018. Staff has received no written or verbal comments opposed to the right- of-way vacation. BACKGROUND The subject properties are located in North Boulder in the Crestview East Neighborhood, which is roughly defined as those properties located north of Tamarack Avenue, south of Violet Avenue, east of 19th Street and west of 22nd Street. Refer to Figure 1. Figure 1: Subject Properties The properties were annexed into the city in 1997. The conditions of annexation included the dedication and construction of infrastructure and streets, including Vine Avenue. The annexation agreements required the property owner at 2100 Violet Ave. to dedicate 30 feet of right-of-way and 1917 Upland Ave. to dedicate 60 feet of right-of-way for the construction of Vine Avenue. At the time, Vine Avenue was anticipated to be designed and constructed as a typical residential street. Subsequent to the annexation and dedication of right-of-way for Vine Avenue, the North Boulder Subcommunity Plan (NBSP) was amended changing Vine Avenue from a typical residential street to a smaller modified access street. Properties located along Vine Avenue that annexed as part of the Crestview East group annexation in 2009 dedicated right-of-way for Vine Avenue of a width consistent with the smaller cross-section of a modified access street, accommodating a 22-foot-wide pavement section plus a five-foot-wide detached sidewalk on the north side of Vine Avenue. Earlier this year City Council considered annexation agreement amendments for the subject properties, along with the properties at 2180 Violet Ave. and 2145 Upland Ave. The purpose of these applications was to allow for the development of the property at 2180 Violet Ave. with a 100 percent permanently affordable housing development to be developed by Flatirons Habitat for Humanity. At the hearing on Feb. 20, 2018 council amended the annexation agreements for the four properties, which included provisions that allow the property owners at 2100 Violet Ave. and 1917 Upland Ave. to apply for the vacation of right-of-way for Vine Avenue. Council 1917 Upland Ave. 2100 Violet Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 121 of 607 supported the vacation at 1917 Upland Ave. since it could allow for the creation of two residential lots north of the dedicated right of way, rather than one lot. For the right-of-way vacation adjacent to 2100 Violet Ave., an easement for drainage and utility purposes will be reserved over the entire 10-foot wide portion to be vacated, and public access rights will be reserved at the southwest corner of the property for the planned north-south sidewalk connection. Refer to Figures 2 and 3 below. Figure 2: Proposed Vacation at 2100 Violet Ave. Figure 3: Proposed Vacation at 1917 Upland Ave. ANALYSIS The subject right-of-way was declared open to the public when dedicated and thus must be vacated by ordinance passed by City Council. In order for the existing right-of-way to be vacated, the council would have to conclude that the criteria under subsection 8-6-9(c), B.R.C. 7.5’ public access easement to be reserved Proposed 10’ right-of-way vacation (drainage and utility easement reserved) Proposed approximate 10’ right-of-way vacation VINE AVENUE VINE AVENUE Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 122 of 607 1981 is met. Staff has reviewed the request for these vacations and has concluded that the criteria can be met as discussed as follows. (1) The applicant must demonstrate that the public purpose for which an easement or right-of- way was originally acquired or dedicated is no longer valid or necessary for public use; The annexation agreements required the property owner at 2100 Violet Ave. to dedicate 30 feet of right-of-way and the property owner of 1917 Upland Ave. to dedicate 60 feet of right- of-way for the construction of Vine Avenue. At the time, Vine Avenue was anticipated to be designed and constructed as a typical residential street. Subsequent to the annexation and dedication of right-of-way for Vine Avenue, the NBSP was amended changing Vine Avenue from a typical residential street to a smaller modified access street. Properties located along Vine Avenue that were annexed as part of the Crestview East group annexation in 2009 dedicated right-of-way for Vine Avenue of a width consistent with the smaller cross-section of a modified access street, accommodating a 22-foot-wide pavement section plus a five- foot-wide detached sidewalk on the north side of Vine Avenue. The right-of-way for the future Vine Avenue, which was acquired through the annexation, was dedicated to the city for the purpose of installation, construction, repair, maintenance, and reconstruction of public transportation improvements, landscaping, and utilities. The applicant has provided plans demonstrating that the full 60’ right-of-way is no longer valid or necessary for public use. The necessary drainage and utility easement will be reserved over the entire portion of right-of-way to be vacated adjacent to 2100 Violet Ave., while public access rights will be reserved at the southwest corner of the property for the planned north- south sidewalk connection. Thus, the proposed vacations would not affect the overall vehicular, bicycle or pedestrian connectivity of the area. (2) All agencies and departments having a conceivable interest in the easement or right-of- way must indicate that no need exists, either at present or conceivable in the future, to retain the property as an easement or right-of-way, either for its original purpose or for some other public purpose unless the vacation ordinance retains the needed utility or right-of-way easement; The proposed vacations have been evaluated by the Planning, Public Works and Transportation Departments and it has been collectively concluded that the public entities would have no conceivable future interest in the right-of-way to be vacated since the construction of Vine Avenue does not require the exiting right-of-way width. Also, the necessary drainage and utility easement will be reserved over the entire portion of right-of- way to be vacated adjacent to 2100 Violet Ave., while public access rights will be reserved at the southwest corner of the property for the planned north-south sidewalk connection. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 123 of 607 (3) The applicant must demonstrate, consistent with the Boulder Valley Comprehensive Plan and the City's land use regulations, either: (A) That failure to vacate an existing right-of-way or easement on the property would cause a substantial hardship to the use of the property consistent with the Boulder Valley Comprehensive Plan and the City's land use regulations; or Not applicable. (B) That vacation of the easement or right-of-way would actually provide a greater public benefit than retaining the property in its present status. The vacations would result in a greater public benefit by providing for an improved site design for redevelopment of the properties. The vacations are consistent with the NBSP since they allow for a smaller cross-section of a modified access street, consistent with the smaller Vine Avenue cross-section. In addition, the vacations will allow future homes to be located closer to the street, which activates the pedestrian experience along Vine Avenue. A site review has been approved for 2100 Violet Ave. for six single-family lots subject to specific design guidelines. ATTACHMENTS Attachment A: Draft Ordinance 8288 Attachment B: Draft Ordinance 8289 Attachment C: Draft Deed of Vacation – 2100 Violet Ave. Attachment D: Draft Deed of Vacation – 1917 Upland Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 124 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8288 AN ORDINANCE VACATING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A DEED OF VACATION FOR A 10-FOOT WIDE PORTION OF VINE AVENUE RIGHT-OF-WAY, CITY OF BOULDER, COUNTY OF BOULDER, COLORADO LOCATED ADJACENT TO 2100 VIOLET AVENUE, AND SETTING FORTH RELATED DETAILS. THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO, FINDS AND RECITES THAT: A.2145 Upland LLC, a Colorado limited liability company, the owner of the property generally known as 2100 Violet Avenue, Boulder, CO, 80304, (“2100 Violet Property”), has requested that the city vacate a 10-foot wide portion of the Vine Avenue right-of-way located immediately south of the 2100 Violet Property. B. The City Council is of the opinion that the requested vacation is in the public interest and that said right-of-way is not necessary for the public use, with the exception of a drainage and utility easement and a 7.5-foot wide public access easement to be reserved as described herein. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. The city council vacates and authorizes the city manager to execute a deed of vacation to vacate a 10-foot wide portion of the Vine Avenue right-of-way dedicated to the City of Boulder on the deed recorded in the records of the Boulder County Clerk and Recorder at Reception No. 1772240 on the 18th day of February 1998, more particularly described in Exhibit A attached hereto and incorporated herein, reserving a drainage and utility easement for any and all drainage and utility purposes in the 10-foot wide parcel described in Exhibit A and reserving Attachment A - Draft Ordinance 8288 Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 125 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a public access easement for public access purposes in the parcel described in Exhibit B attached hereto and incorporated herein. Section 2. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Section 3. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY this _______ day of_________________, ___________. Suzanne Jones Mayor Attest: Lynnette Beck City Clerk READ ON SECOND READING, PASSED AND ADOPTED, this ____ day of ________________, __________. Suzanne Jones Mayor Attest: Lynnette Beck City Clerk Attachment A - Draft Ordinance 8288 Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 126 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8289 AN ORDINANCE VACATING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A DEED OF VACATION FOR A PORTION OF VINE AVENUE RIGHT-OF-WAY, CITY OF BOULDER, COUNTY OF BOULDER, COLORADO GENERALLY LOCATED AT 1917 UPLAND AVENUE, AND SETTING FORTH RELATED DETAILS. THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO, FINDS AND RECITES THAT: A.1917 Upland LLC, a Colorado limited liability company, the owner of the property located at 1917 Upland Avenue, Boulder, CO, (“1917 Upland Avenue Property”), has requested that the city vacate a portion of Vine Avenue right-of-way located immediately south of the northern portion of the 1917 Upland Avenue Property. B. The city council is of the opinion that the requested vacation is in the public interest and that said right-of-way is not necessary for the public use. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. The city council vacates and authorizes the city manager to execute a deed of vacation for a portion of Vine Avenue right-of-way that varies in width and is located adjacent to the 1917 Upland Avenue Property, dedicated to the City of Boulder on the deed recorded in the records of the Boulder County Clerk and Recorder at Reception No. 1772239 on the 18th day of February, 2018, more particularly described in Exhibit A attached hereto and incorporated herein. Section 2. This ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern. Attachment B - Draft Ordinance 8289 Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 127 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 3. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY this _______ day of_________________, ___________. Suzanne Jones Mayor Attest: Lynnette Beck City Clerk READ ON SECOND READING, PASSED AND ADOPTED, this ____ day of ________________, __________. Suzanne Jones Mayor Attest: Lynnette Beck City Clerk Attachment B - Draft Ordinance 8289 Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 128 of 607 Attachment C - Draft Deed of Vacation - 2100 Violet Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 129 of 607 Attachment C - Draft Deed of Vacation - 2100 Violet Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 130 of 607 Attachment C - Draft Deed of Vacation - 2100 Violet Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 131 of 607 Attachment C - Draft Deed of Vacation - 2100 Violet Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 132 of 607 Attachment C - Draft Deed of Vacation - 2100 Violet Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 133 of 607 Attachment D - Draft Deed of Vacation - 1917 Upland Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 134 of 607 Attachment D - Draft Deed of Vacation - 1917 Upland Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 135 of 607 Attachment D - Draft Deed of Vacation - 1917 Upland Ave. Item 3K - 2100 Violet Ave. and 1917 Upland Ave. Vacations City Council Meeting Page 136 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E Second reading and consideration of a motion to adopt Ordinance 8281 approving and authorizing the issuance of a Boulder Municipal Property Authority Lease Purchase Revenue Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property, and approving and authorizing the assignment of the purchase contract to BMPA, the execution and delivery of a Lease Purchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to J efferson County, and setting forth related details; and C onsideration of a motion to adjourn from the Boulder C ity Council and convene as the Boulder Municipal Property Authority Board of Directors. P RI MARY STAF F C ON TAC T Bethany C ollins, Property Agent RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E motion to adopt Ordinance 8281 approving and authorizing the issuance of a Boulder Municipal Property Authority Lease Purchase Revenue Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property, and approving and authorizing the assignment of the purchase contract to BMPA, the execution and delivery of a Lease Purchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to J efferson County, and setting forth related details; and C onsideration of a motion to adjourn from the Boulder C ity Council and convene as the Boulder Municipal Property Authority Board of Directors. AT TAC H ME N T S: Description Memo and Attachments City Council Meeting Page 137 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Second reading and consideration of a motion to adopt Ordinance 8281 approving and authorizing the issuance of a Boulder Municipal Property Authority Lease Purchase Revenue Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property, and approving and authorizing the assignment of the purchase contract to BMPA, the execution and delivery of a Lease Purchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to Jefferson County; and setting forth related details and consideration of a motion to adjourn from the Boulder City Council and convene as the Boulder Municipal Property Authority Board of Directors. PRESENTERS Jane S. Brautigam, City Manager Dan Burke, Interim Director, Open Space and Mountain Parks Bethany Collins, Interim Real Estate Services Supervisor EXECUTIVE SUMMARY On July 17, 2018, City Council unanimously approved motions to acquire the 442-acre Lippincott Ranch property (see Attachments B and C - the “Property”) and appurtenant water and mineral rights for open space purposes for $7.75 million from Charles and Shirley Lippincott, as well as the potential future disposal of a 50 percent undivided interest in the Property to Jefferson County Open Space (JCOS). Those approvals included the option to acquire the Property via cash-at-closing or using Boulder Municipal Property Authority (BMPA) financing. Open Space and Mountain Parks (OSMP) real estate staff and the Lippincotts have negotiated a transaction that involves earnest funds and down payment of $775,000 and utilizing a 20-year BMPA note with 3.5 percent interest for the $6,975,000 principal amount. The annual 20-year payments of $490,768.51 may be shared equally between the City of Boulder and JCOS under an Item 3L - Lippincott 2nd Reading City Council Meeting Page 138 of 607 optional sublease arrangement, subject to approval by the Jefferson County Board of County Commissioners. Without the availability of the BMPA financing option, it is unlikely the Lippincott family would pursue the sale of the Property to the city. BMPA was formed in 1988 as a Colorado non-profit organization for the benefit of the City of Boulder. The members of the City Council are BMPA’s directors and the Mayor is the president. Over the years, BMPA has purchased dozens of properties for open space purposes. In addition, several non-open space properties have been purchased and financed by BMPA, including the East Boulder Community Center. For this transaction, the purchase agreement between the City and the Lippincotts will be assigned by the City to BMPA (Attachment D). BMPA will then issue a carry-back note to acquire property (Attachment E) secured by deeds of trust for both counties (Attachments F-1 and F-2), acquire the property, and then lease the property to the City of Boulder under a lease- purchase agreement for an annual rental equal to the debit service on the note (Attachment G). In addition, for this particular purchase, upon mutually agreeable terms, the City will enter into a sublease agreement with Jefferson County of a 50 percent undivided interest in the Property to Jefferson County (Attachment H). Under the terms of this sublease, the County would be responsible for 50 percent of annual rent payments. As previously presented to City Council at their July 17th meeting, this mountain backdrop property is unique due to its diverse resources and open space values and has been a high priority for acquisition by both OSMP and JCOS for decades. The Property is identified in the goals, recommendations, objectives and criteria of various JCOS and OSMP open space plans. The Property includes diverse ecosystems, wetlands and riparian habitats, and rare and sensitive plant and animal species, along with its spectacular scenic views. The Property is in a highly strategic location adjacent to lands currently owned or conserved by OSMP and JCOS. The acquisition will allow the two agencies to collaborate on their first joint land management plan. Because of the Property’s location, it is critical for JCOS and OSMP to purchase and preserve this property to protect unfragmented open space for landscape-scale conservation and management, as well as potential regional trail connections. STAFF RECOMMENDATION Suggested Motion Language Staff requests council consideration of this matter and action in the form of the following motions: Motion to adopt Ordinance 8281 approving and authorizing the issuance of a Boulder Municipal Property Authority Lease Purchase Revenue Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property, and approving and authorizing the assignment of the purchase contract to BMPA, the execution and delivery of a Lease Purchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to Jefferson County; and setting forth related details. Motion to adjourn from the Boulder City Council and convene as the Boulder Municipal Property Authority Board of Directors. Item 3L - Lippincott 2nd Reading City Council Meeting Page 139 of 607 COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS • Environmental: OSMP is a significant community-supported program that is recognized worldwide as a leader in preservation of Open Space lands contributing to the environmental sustainability goal of the City Council. The city’s acquisition of the Property, and its integration into OSMPs land and resource management and visitor service programs, help preserve, protect and enhance the values of the city’s Open Space system. • Economic: OSMP contributes to the economic vitality goal of the city as it provides the context for the diverse and vibrant economic system that sustains services for residents. Acquiring properties, such as this Property for Open Space, supports the city’s quality of life which attracts visitors and helps businesses recruit and retain quality employees. • Social: OSMP lands, facilities and programs are equally accessible to all members of the community, and as such, they help to support the city's community sustainability goal because all residents "who live in Boulder can feel a part of and thrive in" this aspect of their community. OTHER IMPACTS • Fiscal: The purchase price for the Property is $7,750,000 payable as $77,500 earnest funds and $697,500 down payment with the balance of $6,975,000 payable over the next 20 years at 3.5 percent interest with annual payments of $490,768.51. Fifty percent of these costs will be paid by Jefferson County under the anticipated sublease. Cash Flow Projections for both scenarios are attached (Attachment I-1 and I-2). OSMP has been anticipating the purchase costs associated with the Property in its budget development. • Staff time: This acquisition is part of the normal 2018 work plan for the OSMP Real Estate Workgroup. BOARD AND COMMISSION FEEDBACK At its June 13, 2018 meeting and public hearing to approve the purchase and funding scenarios for the Property acquisition, by a vote of 5-0, the Open Space Board of Trustees unanimously recommended City Council approval of the purchase of the Property. PUBLIC FEEDBACK This item was heard at the June 13, 2018 Open Space Board of Trustees public meeting advertised in the Daily Camera on March 11, 2018. There was no public comment provided. This item was heard at the July 17, 2018 City Council public meeting and approved by a vote of 9-0. One member of the public spoke in support of the acquisition. First reading of the City Council ordinance related to this item was on the consent agenda at the August 21, 2018 City Council public meeting and was approved by a vote of 9-0. ATTACHMENTS • Attachment A -- Ordinance 8281 • Attachment B – Vicinity Map • Attachment C -- Property Map • Attachment D -- Assignment of Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 140 of 607 • Attachment E -- Carry-Back Note • Attachment F-1 – Deed of Trust (Boulder County) • Attachment F-2 – Deed of Trust (Jefferson County) • Attachment G – Lease Purchase Agreement • Attachment H – Sublease Agreement • Attachment I-1 – Cash Flow Projection – BMPA Purchase (100% City) • Attachment I-2 – Cash Flow Projection – BMPA Purchase (50% City/50% JCOS) Item 3L - Lippincott 2nd Reading City Council Meeting Page 141 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE 8281 AN ORDINANCE APPROVING AND AUTHORIZING THE ISSUANCE OF A BOULDER MUNICIPAL PROPERTY AUTHORITY LEASE PURCHASE REVENUE NOTE SERIES 2018A, IN THE PRINCIPAL AMOUNT OF $6,975,000 FOR THE PURCHASE OF THE LIPPINCOTT RANCH PROPERTY, AND APPROVING AND AUTHORIZING THE ASSIGNMENT OF THE PURCHASE CONTRACT TO THE BOULDER MUNICIPAL PROPERTY AUTHORITY, THE EXECUTION AND DELIVERY OF A LEASE PURCHASE AGREEMENT, AND THE OPTIONAL EXECUTION OF A SUBLEASE OF A 50 PERCENT UNDIVIDED INTEREST IN THE PROPERTY TO JEFFERSON COUNTY, AND SETTING FORTH RELATED DETAILS. WHEREAS, the City of Boulder, Colorado (the “City”), has been duly organized and is validly existing as a home rule city under the Colorado Constitution, and the home rule charter of the City (the “Charter”); and WHEREAS, the City has previously authorized the creation of a nonprofit corporation as an instrumentality of the City for certain purposes, which corporation is known as “The Boulder Municipal Property Authority” (the “Authority”); and WHEREAS, the Authority is established for the purpose of facilitating the acquisition of real property, and the construction, installation, and acquisition of public improvements thereon, if any, or maintaining such property as open space (if applicable), and the acquisition of personal property, as may from time to time be determined by the City to be in the best interests of the residents of the City; and WHEREAS, the City and Charles Lippincott, also known as Charles Thomas Lippincott and Shirley Lippincott, also known as Shirley Ann Lippincott, have entered into a Purchase Agreement (Lippincott Ranch Property) dated as of July 31, 2018 (the “Purchase Agreement”), for the acquisition of certain real property within the Counties of Jefferson and Boulder, State of Colorado, consisting of approximately 442 acres as described in Exhibit A to the Purchase ATTACHMENT A Item 3L - Lippincott 2nd Reading City Council Meeting Page 142 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Agreement (the “Property”), for purposes including open space, agriculture, scenic preservation, passive recreation, and trails (“Open Space Purposes”); and WHEREAS, pursuant to the Assignment of Purchase Agreement (the “Assignment”), the City desires to assign certain City rights and obligations under the Purchase Agreement to the Authority to facilitate financing the acquisition of the Property and to confirm certain obligations of the City to provide funds for such purchase, the form of which Assignment has been presented to the city council; and WHEREAS, contingent on the passage of this ordinance, the Authority intends to issue its $6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property) Series 2018A (the “Note”) in connection with the acquisition of the Property, the form of which Note has been presented to the city council; and WHEREAS, the Note shall be secured by one or more deeds of trust (collectively, the “Deed of Trust”) providing a lien against the Property, the draft form of which Deed of Trust has been presented to the city council; and WHEREAS, the Property is to be leased by the Authority to the City pursuant to a Lease Purchase Agreement (the “Lease Agreement”), the draft form of which Lease Agreement has been presented to the city council; and WHEREAS, Jefferson County, Colorado (the “County”) desires to participate in the acquisition of the Property for Open Space Purposes and the City and County will enter into an Intergovernmental Agreement approved by the City Council of the City on July 17, 2018 and subject to charter section 177 and authorized by the County, setting forth certain terms for the acquisition, funding and management of the Property should the County participate in the acquisition as set forth herein; and ATTACHMENT A Item 3L - Lippincott 2nd Reading City Council Meeting Page 143 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, should the County participate in the acquisition, the City and the County shall enter into the Sublease (the “Sublease”), pursuant to which the County shall contribute 50% of the purchase price of the Property and make 50% of the City’s Base Rental Payments under the Lease Agreement in exchange for an undivided 50% interest in the Property, the draft form of which Sublease has been presented to the City Council; and WHEREAS, it is in the best interest of the City that the Property be acquired pursuant to the Purchase Agreement, that the City enter into the Lease Agreement, that the City enter into the Sublease should the County participate in the acquisition, that the Assignment be accepted by the Authority, and that the Lease Agreement, the Note and the Deed of Trust be executed, issued and delivered by the Authority; and WHEREAS, the rental payments required to be made by the City under the Lease Agreement are subject to appropriation each year by the city council, and none of the Purchase Agreement, the Assignment, the Lease Agreement, the Sublease, the Note or the Deed of Trust shall constitute an indebtedness of the City within the meaning of any constitutional, statutory, or home rule Charter provision or limitation. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO: Section 1. It is hereby found and determined by the City Council of the City that the acceptance of the Assignment, the approval of the Lease Agreement, the approval of the Sublease should the County participate in the acquisition, the issuance of the Note secured by the Deed of Trust by the Authority, the execution and delivery of the Assignment, the Lease Agreement and the Sublease by the City should the County participate in the acquisition, for the purpose of ATTACHMENT A Item 3L - Lippincott 2nd Reading City Council Meeting Page 144 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 acquiring the Property, is desirable and appropriate for the furtherance of the general welfare, order, and security of the City and its residents and property owners. Section 2. The issuance of the Note by the Authority in connection with the acquisition of the Property is hereby authorized and approved. The City elects to apply all of the provisions of Part 2 of Article 57 of Title 11, C.R.S. to the issuance and delivery of the Note. Section 3. The Assignment, the Lease Agreement, the Sublease, the Note and the Deed of Trust in substantially the form presented to the city council, are in all respects hereby authorized and approved by the City Council of the City, with such changes thereto, not inconsistent herewith, as may be necessary or desirable and approved by the officials of the City executing the same whose manual signatures thereon shall constitute conclusive evidence of such approval, and the findings and determinations made therein are hereby incorporated in this ordinance as findings and determinations of the city council. Section 4. The Mayor, the city clerk, the city manager and all other officers of the City as applicable are hereby authorized and directed to execute all documents and certificates necessary or desirable to effectuate the issuance and delivery of the Note and the transactions contemplated hereby including, but not limited to the Assignment, the Lease Agreement, the Sublease, the Note or the Deed of Trust, such certificates and affidavits as may be reasonably required in connection with the Lease. The execution by the Mayor, the city clerk, the city manager and all other officers of the City of any document authorized herein shall be conclusive proof of the approval by the City of the terms thereof. Section 5. None of the Assignment, the Lease Agreement, the Sublease, the Note or the Deed of Trust shall constitute the debt or indebtedness of the City within the meaning of any constitutional, statutory, or Charter provision or limitation, and shall not constitute nor give rise to ATTACHMENT A Item 3L - Lippincott 2nd Reading City Council Meeting Page 145 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a pecuniary liability of the City or a charge against its general credit or taxing powers, nor may the City ever be called upon to pay any of the principal of or interest on the Note. Section 6. The approvals of the Assignment, the Lease Agreement, the Sublease, the Note, the Deed of Trust and the execution and delivery of the Assignment, the Lease Agreement, and the Sublease by the City are hereby found to be a matter exclusively of local concern, and the adoption of this ordinance and the provisions hereof are in furtherance of the City’s powers as a home rule city under Colorado law. Section 7. All actions not inconsistent with the provisions of this ordinance heretofore taken by the city council or officers of the City in furtherance of the undertakings herein described are hereby ratified, approved and confirmed. Section 8. All prior acts, orders, or resolutions, or parts thereof, by the City in conflict with this ordinance are hereby repealed, except that this repealer shall not be construed to revive any act, order, or resolution, or part thereof, heretofore repealed. Section 9. If any section, paragraph, clause, or provision of this ordinance shall be adjudged to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the remaining sections, paragraphs, clauses or provisions of this ordinance, it being the intention that the various parts hereof are severable. Section 10. The ordinance is necessary to protect the public health, safety and welfare of the residents of the city and covers matters of local concern. Section 11. The city council deems it appropriate that this ordinance be published by title only and orders that copies of this ordinance be made available in the office of the city clerk for public inspection and acquisition. ATTACHMENT A Item 3L - Lippincott 2nd Reading City Council Meeting Page 146 of 607 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY this 21st day of August 2018. Suzanne Jones Mayor ATTEST: Lynette Beck City Clerk READ ON SECOND READING, PASSED, AND ADOPTED, this 4th day of September 2018. Suzanne Jones Mayor ATTEST: Lynette Beck City Clerk ATTACHMENT A Item 3L - Lippincott 2nd Reading City Council Meeting Page 147 of 607 User: ashlm1 Date: 5/30/2018 Document Path: E:\MapFiles\Property\Lippincott\VICINITYLippincott.mxd Legend ATTACHMENT B: Vicinity Map - Lippincott Ranch Property Approximate property boundaries from Boulder County Assessor’s data. Subject Property OSMP Lands County Lands Federal Lands City Limits County Boundaries Highway Roads I 012345 Miles BoulderBoulder LongmontLongmont LouisvilleLouisville S U B J E C T Item 3L - Lippincott 2nd Reading City Council Meeting Page 148 of 607 VAN VLEET / JEFFCOFowlerDoudyDrawGoshawkRidge PrairieVistaFlatiron s Vi sta So uthFlatirons Vista North STENGEL II LINDSAY / JEFFCO HOGAN RANCH - (CE) ELDORADO MOUNTAIN (CONDA QUARRY) LINDSAY - West DUNN II JEWEL MOUNTAIN LAND CO. EBNER RUDD - WestMOORE FAMILY CoalCreekSouth Boulder D i v e r s i o n C a n a l SpringBro o kSouth Boul d er C k Sout h Dr awUser: ashlm1 Date: 6/5/2018 Document Path: E:\MapFiles\Property\Lippincott\PROPERTYLippincott.mxd Attachment C: Property Map Lippincott Ranch Property (Approximate property boundaries from Boulder County Assessor’s data.) Subject Property OSMP Ownership OSMP Conservation Easement Jefferson County Ownership Hiking Trail Multi-Use Trail Railroads Main Ditch Perennial Stream Intermittent Stream Aqueduct 0 1,200 2,400 3,600 4,800 Feet I Pl ainview Rd. Mickey Mouse Wall Item 3L - Lippincott 2nd Reading City Council Meeting Page 149 of 607 ASSIGNMENT OF REAL ESTATE CONTRACT INTERESTS THIS REAL ESTATE ASSIGNMENT AGREEMENT is made and entered into on this _____day of ___________, 2018, by and between the City of Boulder, a Colorado home rule city (“Boulder”) and the Boulder Municipal Property Authority, a non-profit Colorado corporation (“BMPA”). RECITALS A.Boulder has entered into a Purchase Agreement for the Lippincott Ranch Property dated July 31, 2018 (“the Contract”) to purchase interests in land, water rights and mineral rights within the Counties of Jefferson and Boulder, State of Colorado from Charles Lippincott, also known as Charles Thomas Lippincott and Shirley Lippincott, also known as Shirley Ann Lippincott. B.The Contract provides that Boulder may assign its rights and delegate its obligations under the Contract and/or interests therein to BMPA. C.The Contract provides that the $7,750,000 purchase price will be paid as follows: a $775,000 payment (including $77,500 earnest money previously paid) at the time of closing with the balance of $6,975,000 paid by a BMPA non-recourse carry-back note bearing 3.5% interest payable over 20 years with yearly payments of $490,768.51, secured by a deed of trust. D.The governing bodies of Boulder and BMPA have approved a Lease Purchase Agreement governing the above purchase of land, water and mineral rights. NOW, THEREFORE, in consideration of the covenants contained herein and other good and valuable considerations, the parties agree as follows: A.As to the land, mineral and water rights listed on the attached Exhibit A, Boulder hereby assigns to BMPA its rights and interests and delegates its obligations under the Contract and BMPA hereby assumes the assigned rights, interests and delegated obligations. B.Boulder and BMPA hereby agree to enter into the above-referenced Lease Purchase Agreement. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the day and year first above written. SIGNATURES ON FOLLOWING PAGE Attachment D - Assignment of Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 150 of 607 CITY OF BOULDER, a Colorado home rule city BY: ____________________________ Jane S. Brautigam, City Manager ATTEST: _____________________ City Clerk Approved as to Form ___________________________ City Attorney BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By______________________________ Suzanne Jones, President ATTEST: _________________________ Cheryl Pattelli, Secretary-Treasurer Attachment D - Assignment of Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 151 of 607 4836-1417-9693.2 Boulder, Colorado $6,975,000 CARRY-BACK NOTE THIS CARRY-BACK NOTE HAS BEEN PRIVATELY PLACED BY THE BOULDER MUNICIPAL PROPERTY AUTHORITY; ANY REGISTERED OWNER HEREOF, INCLUDING ANY TRANSFEREE, IS RESPONSIBLE FOR MAKING ITS OWN INVESTMENT DECISION, AND ANY SUCH REGISTERED OWNER IS NOT ENTITLED TO RELY ON THE AUTHORITY OR THE CITY OF BOULDER, COLORADO, FOR PURPOSES OF DISCLOSURE WITH RESPECT TO SAID REGISTERED OWNER’S DECISION IN PURCHASING THIS NOTE. BY ITS OWNERSHIP OF THIS NOTE, THE REGISTERED OWNER HEREOF ACCEPTS THE FOREGOING PROVISIONS. $6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property), Series 2018A FOR VALUE RECEIVED, The Boulder Municipal Property Authority (the “Authority”) promises to pay to Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott, in the manner and only from the sources hereinafter provided, the principal sum of six million nine hundred seventy-five thousand dollars ($6,975,000), together with interest on unpaid principal from the date hereof until paid, at the rate of 3.5% per annum, said principal and interest to be payable in 20 annual payments pursuant to the following schedule (said schedule to be conclusive with respect to the interest payments hereon notwithstanding the foregoing provisions of this Note), provided however, that should any payment date set forth in the Payment Schedule, below, not be a business day on which the Authority’s Paying Agent, which shall initially be U.S. Bank National Association (the “Paying Agent”), shall be open for business, then such payment shall be made on the succeeding business day that the Paying Agent is open for business. Such monthly payments shall first be applied to interest payable on this Note with the remainder applied to the payment of the outstanding principal. [Remainder of Page Intentionally Left Blank – Payment Schedule Follows] ATTACHMENT E - Carry Back Note Item 3L - Lippincott 2nd Reading City Council Meeting Page 152 of 607 4836-1417-9693.2 Payment Schedule _____ of ______ Year Principal Amount Interest Amount Total Payment 2019 $246,643.51 $244,125.00 $490,768.51 2020 255,276.03 235,492.48 490,768.51 2021 264,210.69 226,557.82 490,768.51 2022 273,458.07 217,310.44 490,768.51 2023 283,029.10 207,739.41 490,768.51 2024 292,935.12 197,833.39 490,768.51 2025 303,187.85 187,580.66 490,768.51 2026 313,799.42 176,969.09 490,768.51 2027 324,782.40 165,986.11 490,768.51 2028 336,149.79 154,618.72 490,768.51 2029 347,915.03 142,853.48 490,768.51 2030 360,092.06 130,676.45 490,768.51 2031 372,695.28 118,073.23 490,768.51 2032 385,739.61 105,028.90 490,768.51 2033 399,240.50 91,528.01 490,768.51 2034 413,213.92 77,554.59 490,768.51 2035 427,676.40 63,092.11 490,768.51 2036 442,645.08 48,123.43 490,768.51 2037 458,137.66 32,630.85 490,768.51 2038 474,172.47 16,596.04 490,768.51 The principal of and interest on this Note are payable in lawful monies of the United States of America without deduction for collection charges. The principal of and interest on this Note are payable to the registered owner hereof by wire transfer according to the instructions provided by the person in whose name the Note is registered, or, if requested by the Authority, by wire transfer according to the instructions provided by the person in whose name this Note is registered, on the registration books of the Authority at the close of business on the day preceding such principal and interest payment date, whether or not a business day (the “Record Date”); provided, however, that the final payment of the principal of and interest hereon shall be made solely upon presentation and surrender of this Note at the office of the Authority, 1777 Broadway, Boulder, Colorado 80302. If the wiring instructions for the registered owner change during the course of the payment of this Note, it is the responsibility of the registered owner hereof to notify the Paying Agent and provide the Paying Agent with new wiring instructions. If such wire transfer is rejected, the Paying Agent shall hold such payment (without accruing additional interest) until it has been provided with new wire instructions from the registered owner hereof. If, due to the registered owner’s failure to provide the Paying Agent with proper wiring instructions, payment is received by a party other than the registered owner hereof, neither the Authority nor the Paying Agent shall be held responsible for such payment(s) to the registered owner hereof. ATTACHMENT E - Carry Back Note Item 3L - Lippincott 2nd Reading City Council Meeting Page 153 of 607 4836-1417-9693.2 This Note is a note of the Authority denominated as “$6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property), Series 2018A” issued in the principal amount of six million nine hundred seventy-five thousand dollars ($6,975,000) (the “Note”). As provided in the resolution of the Authority authorizing this Note (the “Resolution”), this Note is issuable solely in the form of one fully registered note without coupons and in the denomination of six million nine hundred seventy-five thousand dollars ($6,975,000). This Note is issued to acquire certain open space property (the “Property”) to be leased to the City of Boulder, Colorado (the “City”). The Property so leased (the “Leased Property”) shall be leased pursuant to a Lease Purchase Agreement (the “Lease Agreement”). The Lease Agreement allows for the sublease of the Property to Jefferson County and for certain rights of cure by Jefferson County as provided in Section 13.5 of the Lease Agreement. For so long as the Jefferson County Sublease is in effect as provided in the Lease Agreement, then Jefferson County shall have a right to cure and pay the amounts due under this Note with the rental proceeds collectible under the Lease Agreement as permitted in the sublease to Jefferson County. This Note may be prepaid by the Authority at any time without penalty. The Authority may deem and treat the registered owner of this Note as the absolute owner hereof for all purposes (whether or not this Note shall be overdue), and any notice to the contrary shall not be binding upon the Authority. This Note is transferable by the registered owner hereof in person or by his attorney, duly authorized in writing, at the principal office of the Paying Agent designated above, but only in the manner, subject to the limitations and upon payment of the charges, provided in the Resolution. This Note may be transferred upon the registration books by delivery of this Note to the Paying Agent together with a written instrument or instruments of transfer in form and with guarantee of signature satisfactory to the Paying Agent, duly executed by the registered owner o f this Note or his or her attorney-in-fact or legal representative, containing written instructions as to the details of the transfer of the Note, along with the social security number or federal employer identification number of such transferee and wire instructions, if applicable, for principal and interest payments on the Note to such transferee executed by the transferee. In the event of the transfer of this Note, the Paying Agent shall enter the transfer of ownership in the registration books. The Au thority and the Paying Agent shall charge the registered owner of this Note for every such transfer an amount sufficient to reimburse the Authority and the Paying Agent for their reasonable fees and for any tax or other governmental charge required to be paid with respect to such transfer. The Authority may replace a lost, stolen or destroyed Note upon receiving indemnity satisfactory to the Authority from the registered owner thereof. EXCEPT TO THE EXTENT PAYABLE FROM NET PROCEEDS OF FORECLOSURE AND SALE OF THE LEASED PROPERTY PURSUANT TO A DEED OF TRUST DATED --- -[B]--- (THE “DEED OF TRUST”) FROM THE AUTHORITY TO THE PUBLIC TRUSTEE S OF BOULDER AND JEFFERSON COUNTIES, COLORADO, FOR THE BENEFIT OF THE REGISTERED OWNER HEREOF, THIS NOTE SHALL BE PAYABLE SOLE LY FROM RENTALS TO BE PAID BY THE CITY UNDER THE LEASE AGREEMENT OR FROM THE SUBLEASE PAYMENTS MADE BY THE COUNTY OF JEFFERSON, COLORADO (THE “COUNTY”) MADE PURSUANT TO THE SUBLEASE AGREEMENT DATED _______________ (THE “SUBLEASE”). ALL PAYMENT OBLIGATIONS OF THE CITY ATTACHMENT E - Carry Back Note Item 3L - Lippincott 2nd Reading City Council Meeting Page 154 of 607 4836-1417-9693.2 UNDER THE LEASE AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE OBLIGATION OF THE CITY TO PAY RENTALS, SHALL ONLY BE MADE FROM THE CITY’S OPEN SPACE AND STREET FUND MAINTAINED UNDER SECTION 3-18-1, BOULDER REVISED CODE 1981. ALL PAYMENT OBLIGATIONS OF THE CITY ARE FROM YEAR TO YEAR ONLY, AND DO NOT CONSTITUTE A MANDATORY PAYMENT OBLIGATION OF THE CITY IN ANY FISCAL YEAR BEYOND A FISCAL YEAR IN WHICH THE LEASE AGREEMENT, AS ANNUALLY RENEWED, SHALL THEN BE IN EFFECT. THE LEASE AGREEMENT IS SUBJECT TO ANNUAL RENEWAL AND APPROPRIATION AT THE OPTION OF THE CITY AND SHALL BE TERMINATED UPON THE EVENT OF NONAPPROPRIATION BY THE CITY AND THE FAILURE OF THE COUNTY TO CURE THE NONAPPROPRIATION EVENT PURSUANT TO THE TERMS OF THE SUBLEASE AGREEMENT. ALL PAYMENT OBLIGATIONS FROM THE CITY UNDER THE LEASE AGREEMENT SHALL TERMINATE, AND THIS NOTE AND THE INTEREST HEREON SHALL BE PAYABLE SOLELY FROM MONIES AVAILABLE, IF ANY, FROM FORECLOSURE ON THE LEASED PROPERTY PURSUANT TO THE DEED OF TRUST. None of the Lease Agreement, this Note or the Deed of Trust constitute a general obligation or other indebtedness of the City within the meaning of any constitutional, statutory, or home rule charter debt provision or limitation. None of the Lease Agreement, this Note or the Deed of Trust of the Authority have directly or indirectly obligated the City to make any payments beyond those appropriated for any fiscal year in which the Lease Agreement shall then be in effect. The obligations of the Authority under the Resolution and the Deed of Trust shall be discharged as and to the extent provided in the Resolution upon deposit of cash and/or United States government securities with an escrow agent, in which case the registered owner of this Note shall promptly release the lien of the Deed of Trust and shall be secured solely as provided in the Resolution. Upon receiving written notice of a default from the registered owner hereof confirming that the City has defaulted on payment hereunder or otherwise nonappropriated for the applicable fiscal year and the County has failed to cure such failure or annual nonappropriation, then the Authority shall have 30 days to cure such default, whereupon if such default is not cured, then the entire principal amount hereof, together with interest hereon, shall, at the election of the registered owner hereof, become due and payable, but only from the sources hereinabove described. Failure to exercise this election or any other remedies upon a default shall not constitute a waiver of t hat right in the event of a subsequent or continuing default. The rights or remedies of the registered owner hereof as provided in this Note and the Deed of Trust shall be cumulative and concurrent and may be pursued singly, successively, or together against the Leased Property at the sole discretion of the registered owner hereof. The failure to exercise any such right or remedy shall in no event be construed as a waiver or release of said rights or remedies, or of the rights to exercise them at any later time. This Note may not be amended, modified, or changed, nor shall any waiver of any provision hereof be effective, except by an instrument in writing and signed by the party against whom enforcement of any waiver, amendment, change, modification or discharge is sought. ATTACHMENT E - Carry Back Note Item 3L - Lippincott 2nd Reading City Council Meeting Page 155 of 607 4836-1417-9693.2 It is hereby certified and recited that all the requirements of law have been fully complied with by the proper Authority officers in the issuance of this Note, and that this Note was duly and lawfully authorized by the Resolution duly adopted and approved by the Board of Directors of the Authority prior to the issuance hereof. The registered owner of this Note, by acceptance hereof, acknowledges and agrees to be bound by all provisions of the Resolution relating hereto and the Sublease Agreement for cure rights by the County of any defaults by the City hereunder. This Note shall not be entitled to any benefit under the Resolution, or become valid or obligatory for any purpose until the Paying Agent, as registrar, shall have signed the certificate of authentication hereon. [Remainder of Page Intentionally Left Blank – Signature Page Follows] ATTACHMENT E - Carry Back Note Item 3L - Lippincott 2nd Reading City Council Meeting Page 156 of 607 4836-1417-9693.2 IN WITNESS WHEREOF, the Board of Directors of the Authority has caused this Note to be executed with the signature of the President of the Authority and attested by the signature of its Secretary-Treasurer and has caused the seal of the Authority to be impressed or imprinted hereon. Date: [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer ATTACHMENT E - Carry Back Note Item 3L - Lippincott 2nd Reading City Council Meeting Page 157 of 607 4836-1417-9693.2 CERTIFICATE OF AUTHENTICATION This Note is one of the Notes described in the within mentioned Resolution of the Authority. Date of Authentication: U.S. BANK NATIONAL ASSOCIATION, as Registrar By Authorized Officer ATTACHMENT E - Carry Back Note Item 3L - Lippincott 2nd Reading City Council Meeting Page 158 of 607 4836-1417-9693.2 FORM OF ASSIGNMENT OF NOTE ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto (please print or type name and address of transferee) (Tax Identification or Social Security No. ) the within Note and all rights and title hereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Note on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Signature must be guaranteed by a member of a Medallion Signature Program. NOTE: PLEASE RETURN ORIGINAL NOTE WITH THIS ASSIGNMENT. The signature on this assignment must correspond with the name as it appears on the face of this original note. ATTACHMENT E - Carry Back Note Item 3L - Lippincott 2nd Reading City Council Meeting Page 159 of 607 CARRY-BACK DEED OF TRUST (BOULDER COUNTY PROPERTY)1 THIS DEED OF TRUST (“Deed of Trust”) is made this __________, 2018, from THE BOULDER MUNICIPAL PROPERTY AUTHORITY, 1777 Broadway, Boulder, Colorado 80302, hereinafter referred to as “Grantor,” which designation shall include its successors in interest, to THE PUBLIC TRUSTEE of Boulder County, in the State of Colorado, hereinafter referred to as “Trustee,” for the benefit of Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott, as owner of the hereinafter-defined Carry-Back Note, or its registered assignees as their interest may appear; W I T N E S S E T H : WHEREAS, Grantor has executed its “$6,975,000.00 Lease Purchase Revenue Carry- Back Note (Lippincott Ranch Property), Series 2018,” dated __________, 2018 (together with any replacement thereof reflecting an assignee as holder, the “Carry-Back Note”), in the principal amount of SIX MILLIO N NINE HUNDRED SEVENTY-FIVE DOLLARS $6,975,000 with its final maturity being __________, 2039, payable to the order of Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott or registered assigns, (including registered owners holding a replacement Carry-Back Note) hereinafter referred to as “Lender,” whose principal office or address is at 36496 County Road 49, Eaton, Colorado 80615, in annual installments of principal and interest payable in connection with the schedule of total payments on the Carry-Back Note secured hereby as set forth on Exhibit A hereto. Capitalized terms used and not defined herein shall have the meanings given such terms in the Carry-Back Note or if not defined therein, then in the Lease Agreement; NOW, THEREFORE, Grantor, for the purpose of securing payments of the principal and interest and all other sums due under the terms and conditions of said Carry-Back Note and this Deed of Trust, and in consideration of these premises, does hereby grant, bargain, and sell and convey unto the Trustee for the benefit of the Lender, in trust and with the power of sale, all of its right, title and interest in the property in Boulder County, Colorado, described in Exhibit B hereto, ( the “Land”); TOGETHER with all building materials and equipment now or hereafter delivered to said premises and intended to be installed therein, and all buildings, improvements, fixtures or appurtenances now or hereafter erected thereon, including, without limiting the generality thereof, all apparatus, equipment or fixtures, whether in single units or centrally controlled, used to supply heat, gas, air conditioning, water, light, power, refrigeration, ventilation or other services, and screens, venetian blinds, window shades, storm doors and windows, wall-to-wall carpeting, attached floor coverings, stoves and water heaters, and including all accessions, additions and replacements (all of which are declared to be a part of said Land whether physically attached thereto or not); and 1 This Deed of Trust also constitutes a financing statement covering goods which are or are to become fixtures related to the above-described real property. Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 160 of 607 TOGETHER with all leases, rents, issues and profits of said Land including the Lease and Sublease and all rents due and payable thereunder; and TOGETHER with any surface and subsurface water and water rights, ditch and ditch rights, ponds and pond rights, springs and spring rights used upon or in connection therewith and including all wells, well rights (decreed or not), water stock, stock rights; and TOGETHER with all minerals, mineral rights, oil and gas rights and mining interests, if any, of any type and nature; and TOGETHER with all rights of access, easements and easement rights; and TOGETHER with insurance and insurance proceeds relating to any of the foregoing and all development rights, hereditaments and appurtenances or nature. TO HAVE AND TO HOLD the above-described Land and pledged interests, together with all and singular rights, privileges, hereditaments and appurtenances in anywise appertaining or belonging thereto (collectively, the “Property”); IN TRUST NEVERTHELESS, that in case of an y Event of Default hereunder by Grantor or its successors in interest, according to the terms of said Carry-Back Note or this Deed of Trust, the Lender may file the Carry-Back Note and notice with Trustee declaring such default and its election and demand that said property be advertised for sale and sold in accordance with the statutes of the State of Colorado in such cases made and provided; and thereupon said Trustee (the Public Trustee) shall sell and dispose of the Property and all the right, title, and interest of said Grantor, its successors or assigns therein, at public auction at the principal entrance of the Court House in the above designated County of Colorado wherein said property is located, or at such place authorized by law as specified in the notice of sale, for the highest and best price the same will bring in cash, four weeks public notice by advertisement, weekly, in some newspaper of general circulation published in said County having been previously given, and copies of said notice having been mailed in accordance with the said statutes of the State of Colorado. Any such foreclosure by the Public Trustee shall comply with the then applicable provisions of the Colorado Revised Statutes governing pubic trustee foreclosures in the State of Colorado notwithstanding any other provisions hereof. Grantor warrants title to and possession of the encumbered Property in Grantor and hereby absolutely waives and releases all exemptions now vested or hereafter acquired under present or future statutes of the State of Colorado, and Grantor further warrants that said Property is free and clear of all liens and encumbrances, except the lien of general taxes, if any, and those encumbrances described in Exhibit C hereto. IN ORDER TO PROTECT MORE FULLY THE SECURITY OF THIS DEED OF TRUST, GRANTOR FURTHER COVENANTS AND AGREES AS FOLLOWS: 1.To pay promptly all and singular the principal and interest and all other sums of money payable by virtue of said Carry-Back Note and this Deed of Trust, but only from payments received from the City of Boulder, Colorado (the “City”), pursuant to the hereinafter defined Lease Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 161 of 607 Agreement, on the days respectively that the same severally become due and to perform each and every stipulation, agreement, and condition in said Carry-Back Note and this Deed of Trust. 2. To pay promptly all taxes, assessments, levies, insurance premiums, and all other liabilities, obligations, and encumbrances as they become due; provided that in the event the Lender shall be or become liable for or obligated to pay any tax or assessment whatever under any present or future governmental law or levy for and on account of the Carry-Back Note or this Deed of Trust securing the same, to pay the Lender at least ten days prior to the due date of said tax or assessments, the full amount thereof. 3. Not to sell or lease the Property herein described without the written consent of the Lender, other than pursuant to and as permitted under the Lease Purchase Agreement dated _____________________, 2018 (the “Lease Agreement”), between Grantor and the City , including the right to sublease the Property to Jefferson County, Colorado pursuant to Section 13.2(a) of the Lease Agreement (the “Sublease”) and the right sublease the Property for agricultural uses, subject to Section 11.6 of the Lease Agreement and Section 11.6 of the Sublease. 4. Except as provided in 3 above, not to alienate or encumber said Property to the prejudice of the Lender, or commit, permit, or suffer any waste, impairment, or depreciation of said property, or any of its appurtenances, and regardless of natural depreciation, to keep said property and the improvements thereon, if any, at all times in good repair. The Lender shall have the right, at any and all reasonable times, to inspect the Property. 5. Not to use the Property in violation of any covenant as to uses or reservation to which title to the Property herein conveyed is subject, or in violation of any municipal ordinance or of a state or federal statute. In the event improvements are made on the Property, all plans, specifications, and construction shall comply with all ordinances and regulations or orders promulgated by lawful authority and upon completion conform to rules of fire underwriters. 6. That if this Deed of Trust is foreclosed, a reasonable sum shall be allowed as attorney’s fees. In case of the commencement of collection effort or of a foreclosure by the placement of the Carry-Back Note and this Deed of Trust into the possession of an attorney for such purpose, Grantor will pay upon demand a reasonable attorney’s fee even though a foreclosure proceeding does not follow, and such fee shall become so much additional indebtedness secured by this Deed of Trust. 7. That in the event of foreclosure of this Deed of Trust, all right, title, and interest of Grantor in and to any insurance policies then in force shall pass to the purchaser or grantee receiving a trustee’s deed as a result of such foreclosure sale. 8. That time is of the essence hereof, and if default be made in making any payment or reimbursement according to the terms of the Carry-Back Note or this Deed of Trust, or any part thereof, or if there is a breach in any of the covenants and agreements therein or herein, or if proceedings are instituted to enforce any other lien upon said property, or upon the filing of a proceeding in bankruptcy by or against Grantor, or if Grantor shall abandon any of said Property, and if such events are not cured pursuant to the terms of the Lease or Sublease (such uncured event, an “Event of Default”) then in any of such Event of Default and regardless of any other remedy Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 162 of 607 available, the whole of the indebtedness hereby secured and the interest thereon may at once, at the option of and upon notice by the legal holder thereof, become due and payable, and this Deed of Trust may be foreclosed in the manner provided for herein and with the same effect as if said indebtedness had matured. 9. That in case of any Event of Default, the Lender shall have the right of foreclosure hereunder, and thereupon the Lender shall at once become entitled to possession, use, and enjoyment of the Property aforesaid, and to the rents, issues, and profits thereof, from the accruing of such right and during the pendency of foreclosure proceedings, if any there be; and as additional security and in confirmation thereof, Grantor hereby assigns and sets over to the Lender all such rents, issues, and profits due or to become due under the Lease or Sublease, together with the right of possession and the right to rent the Property as the Lender may deem proper, without notice but upon the application to a Court to have a receiver appointed therefor, and together with the right to apply net rentals after expenses to the indebtedness due. Upon receipt of a written request from the Lender, all tenants of said premises under the Lease or Sublease are hereby directed to pay promptly all rent due thereunder as it falls due directly to the Lender or manager designated by the Lender. Such possession, use, enjoyment, rents, issues, and profits shall at once be delivered to the Lender or the holder of the Carry-Back Note on request, and on refusal, the delivery of such possession may be enforced by any appropriate civil suit or proceeding, and the Lender or the holder of the Carry-Back Note shall be entitled to a receiver for said property, and of the rents, issues, and profits thereof, including the time covered by foreclosure proceedings, and shall be entitled thereto as a matter of right without regard to the solvency or insolvency of Grantor or of the then owner of said property and without regard to the value of the property. Such receiver may be appointed by any Court of competent jurisdiction upon ex parte application and without notice. Notice, and any such application and notice being hereby expressly waived and consented to by Grantor for and on its own behalf and on behalf of its heirs, assigns, and legal representatives, and all persons claiming by, through, or under it, and all rents, issues and profits, income and revenue of said Property shall be applied by such receiver according to law and the orders and directions of the Court. 10. That each right, power, and remedy herein conferred is cumulative of every other right, power, and remedy of the Lender whether herein or by law or by the Carry-Back Note conferred and may be enforced concurrently therewith; provided that taking of possession and the foreclosure sale of the premise shall operate to release Grantor in whole of any and all amounts remaining due on the Carry-Back Note, it being the intent that the Carry-Back Note and this Deed of Trust are made without recourse to Grantor for any deficiency amounts following for eclosure. That no waiver, express or implied, of the performance of any obligation, agreement, or covenant hereof shall be deemed or taken to be a waiver of any other or succeeding obligation, agreement, or covenant of the Carry-Back Note or of this Deed of Trust; that no payment or advancement by the Lender hereunder on behalf of the Grantor shall be deemed a waiver of the breach occurring or the right to elect to foreclose this Deed of Trust; and the indulgence of the Lender to Grantor in not exercising its option to declare the indebtedness to be due and payable upon the happening of any of the events or conditions herein described shall not, even though such indulgence be repeated and extended, be construed as a waiver of the right of the Lender to exercise such option at any time thereafter and without notice to Grantor. Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 163 of 607 11. That it is hereby acknowledged by Grantor that the Carry-Back Note and this Deed of Trust may be assigned by Lender. 12. That all of the covenants and agreements herein contained shall run with the Property and shall extend to and be binding upon the heirs, executors, legal representatives, successors, and assigns (whether voluntary or involuntary by operation of law) of the Lender. Whenever used, the singular shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. 13. That all payment obligations of the Grantor under the Carry-Back Note and this Deed of Trust are special, limited revenue obligations of Grantor, payable solely from amounts received by Grantor from the City pursuant to the Lease or the Sublease or realized by foreclosure under this Deed of Trust; and that the obligations of the City under the Lease Agreement (and the obligations of the County under the Sublease Agreement) are subject to renewal of the Agreement each year by the City (or County under the Sublease) at its discretion, and the City’s obligations are subject to the City Council appropriation each year from the City’s Open Space and Street Fund maintained under Section 3-2-39, Boulder Revised Code 1981. 14. This Deed of Trust shall be released upon payment in full of the Carry-Back Note. A release of this Deed of Trust shall release any assignment of rents given as additional security. The Public Trustee may, upon production of the Carry-Back Note secured hereby duly canceled, release this Deed of Trust without further showing as to additional advances and without liability for so doing, and such release shall constitute a release of the lien of any such advances. When and if any release is required, Grantor shall pay the expense thereof. [The remainder of this page is intentionally blank.] Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 164 of 607 IN WITNESS WHEREOF, Grantor has hereunto set its hands the day and year first above written. [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer STATE OF COLORADO ) ) ss. COUNTY OF BOULDER ) The foregoing instrument was acknowledged before me this ______ day of ____________, ______, by Suzanne Jones and Cheryl Pattelli, as President and Secretary-Treasurer, respectively, of The Boulder Municipal Property Authority, a Colorado non-profit corporation. WITNESS my hand and official seal. [SEAL] Notary Public Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 165 of 607 EXHIBIT A PAYMENT SCHEDULE Year Principal Amount Interest Amount Total Payment 2019 $246,643.51 $244,125.00 $490,768.51 2020 255,276.03 235,492.48 490,768.51 2021 264,210.69 226,557.82 490,768.51 2022 273,458.07 217,310.44 490,768.51 2023 283,029.10 207,739.41 490,768.51 2024 292,935.12 197,833.39 490,768.51 2025 303,187.85 187,580.66 490,768.51 2026 313,799.42 176,969.09 490,768.51 2027 324,782.40 165,986.11 490,768.51 2028 336,149.79 154,618.72 490,768.51 2029 347,915.03 142,853.48 490,768.51 2030 360,092.06 130,676.45 490,768.51 2031 372,695.28 118,073.23 490,768.51 2032 385,739.61 105,028.90 490,768.51 2033 399,240.50 91,528.01 490,768.51 2034 413,213.92 77,554.59 490,768.51 2035 427,676.40 63,092.11 490,768.51 2036 442,645.08 48,123.43 490,768.51 2037 458,137.66 32,630.85 490,768.51 2038 474,172.47 16,596.04 490,768.51 Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 166 of 607 EXHIBIT B LEGAL DESCRIPTION OF ENCUMBERED PROPERTY The Southeast ¼ of the Southeast ¼ of Section 36, Township 1 South, Range 71 West of the 6th P.M., County of Boulder, State of Colorado. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not limited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 167 of 607 EXHIBIT C SCHEDULE OF CERTAIN PERMITTED ENCUMBRANCES [To be taken from the Title Policy] Attachment F-1 Deed of Trust Boulder Item 3L - Lippincott 2nd Reading City Council Meeting Page 168 of 607 CARRY-BACK DEED OF TRUST (JEFFERSON COUNTY PROPERTY)1 THIS DEED OF TRUST (“Deed of Trust”) is made this __________, 2018, from THE BOULDER MUNICIPAL PROPERTY AUTHORITY, 1777 Broadway, Boulder, Colorado 80302, hereinafter referred to as “Grantor,” which designation shall include its successors in interest, to THE PUBLIC TRUSTEE of Jefferson County, in the State of Colorado, hereinafter referred to as “Trustee,” for the benefit of Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott, as owner of the hereinafter-defined Carry-Back Note, or its registered assignees as their interest may appear; W I T N E S S E T H : WHEREAS, Grantor has executed its “$6,975,000.00 Lease Purchase Revenue Carry- Back Note (Lippincott Ranch Property), Series 2018,” dated __________, 2018 (together with any replacement thereof reflecting an assignee as holder, the “Carry-Back Note”), in the principal amount of SIX MILLION NINE HUNDRED SEVENTY-FIVE DOLLARS $6,975,000 with its final maturity being __________, 2039, payable to the order of Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott or registered assigns, (including registered owners holding a replacement Carry-Back Note) hereinafter referred to as “Lender,” whose principal office or address is at 36496 County Road 49, Eaton, Colorado 80615, in annual installments of principal and interest payable in connection with the schedule of total payments on the Carry-Back Note secured hereby as set forth on Exhibit A hereto. Capitalized terms used and not defined herein shall have the meanings given such terms in the Carry-Back Note or if not defined therein, then in the Lease Agreement; NOW, THEREFORE, Grantor, for the purpose of securing payments of the principal and interest and all other sums due under the terms and conditions of said Carry-Back Note and this Deed of Trust, and in consideration of these premises, does hereby grant, bargain, and sell and convey unto the Trustee for the benefit of the Lender, in trust and with the power of sale, all of its right, title and interest in the property in Jefferson County, Colorado, described in Exhibit B hereto, ( the “Land”); TOGETHER with all building materials and equipment now or hereafter delivered to said premises and intended to be installed therein, and all buildings, improvements, fixtures or appurtenances now or hereafter erected thereon, including, without limiting the generality thereof, all apparatus, equipment or fixtures, whether in single units or centrally controlled, used to supply heat, gas, air conditioning, water, light, power, refrigeration, ventilation or other services, and screens, venetian blinds, window shades, storm doors and windows, wall-to-wall carpeting, attached floor coverings, stoves and water heaters, and including all accessions, additions and replacements (all of which are declared to be a part of said Land whether physically attached thereto or not); and 1 This Deed of Trust also constitutes a financing statement covering goods which are or are to become fixtures related to the above-described real property. Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 169 of 607 TOGETHER with all leases, rents, issues and profits of said Land including the Lease and Sublease and all rents due and payable thereunder; and TOGETHER with any surface and subsurface water and water rights, ditch and ditch rights, ponds and pond rights, springs and spring rights used upon or in connection therewith and including all wells, well rights (decreed or not), water stock, stock rights; and TOGETHER with all minerals, mineral rights, oil and gas rights and mining interests, if any, of any type and nature; and TOGETHER with all rights of access, easements and easement rights; and TOGETHER with insurance and insurance proceeds relating to any of the foregoing and all development rights, hereditaments and appurtenances or nature. TO HAVE AND TO HOLD the above-described Land and pledged interests, together with all and singular rights, privileges, hereditaments and appurtenances in anywise appertaining or belonging thereto (collectively, the “Property”); IN TRUST NEVERTHELESS, that in case of any Event of Default hereunder by Grantor or its successors in interest, according to the terms of said Carry-Back Note or this Deed of Trust, the Lender may file the Carry-Back Note and notice with Trustee declaring such default and its election and demand that said property be advertised for sale and sold in accordance with the statutes of the State of Colorado in such cases made and provided; and thereupon said Trustee (the Public Trustee) shall sell and dispose of the Property and all the right, title, and interest of said Grantor, its successors or assigns therein, at public auction at the principal entrance of the Court House in the above designated County of Colorado wherein said property is located, or at such place authorized by law as specified in the notice of sale, for the highest and best price the same will bring in cash, four weeks public notice by advertisement, weekly, in some newspaper of general circulation published in said County having been previously given, and copies of said notice having been mailed in accordance with the said statutes of the State of Colorado. Any such foreclosure by the Public Trustee shall comply with the then applicable provisions of the Colorado Revised Statutes governing pubic trustee foreclosures in the State of Colorado notwithstanding any other provisions hereof. Grantor warrants title to and possession of the encumbered Property in Grantor and hereby absolutely waives and releases all exemptions now vested or hereafter acquired under present or future statutes of the State of Colorado, and Grantor further warrants that said Property is free and clear of all liens and encumbrances, except the lien of general taxes, if any, and those encumbrances described in Exhibit C hereto. IN ORDER TO PROTECT MORE FULLY THE SECURITY OF THIS DEED OF TRUST, GRANTOR FURTHER COVENANTS AND AGREES AS FOLLOWS: 1. To pay promptly all and singular the principal and interest and all other sums of money payable by virtue of said Carry-Back Note and this Deed of Trust, but only from payments received from the City of Boulder, Colorado (the “City”), pursuant to the hereinafter defined Lease Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 170 of 607 Agreement, on the days respectively that the same severally become due and to perform each and every stipulation, agreement, and condition in said Carry-Back Note and this Deed of Trust. 2. To pay promptly all taxes, assessments, levies, insurance premiums, and all other liabilities, obligations, and encumbrances as they become due; provided that in the event the Lender shall be or become liable for or obligated to pay any tax or assessment whatever under any present or future governmental law or levy for and on account of the Carry-Back Note or this Deed of Trust securing the same, to pay the Lender at least ten days prior to the due date of said tax or assessments, the full amount thereof. 3. Not to sell or lease the Property herein described without the written consent of the Lender, other than pursuant to and as permitted under the Lease Purchase Agreement dated _____________________, 2018 (the “Lease Agreement”), between Grantor and the City , including the right to sublease the Property to Jefferson County, Colorado pursuant to Section 13.2(a) of the Lease Agreement (the “Sublease”) and the right sublease the Property for agricultural uses, subject to Section 11.6 of the Lease Agreement and Section 11.6 of the Sublease. 4. Except as provided in 3 above, not to alienate or encumber said Property to the prejudice of the Lender, or commit, permit, or suffer any waste, impairment, or depreciation of said property, or any of its appurtenances, and regardless of natural depreciation, to keep said property and the improvements thereon, if any, at all times in good repair. The Lender shall have the right, at any and all reasonable times, to inspect the Property. 5. Not to use the Property in violation of any covenant as to uses or reservation to which title to the Property herein conveyed is subject, or in violation of any municipal ordinance or of a state or federal statute. In the event improvements are made on the Property, all plans, specifications, and construction shall comply with all ordinances and regulations or orders promulgated by lawful authority and upon completion conform to rules of fire underwriters. 6. That if this Deed of Trust is foreclosed, a reasonable sum shall be allowed as attorney’s fees. In case of the commencement of collection effort or of a foreclosure by the placement of the Carry-Back Note and this Deed of Trust into the possession of an attorney for such purpose, Grantor will pay upon demand a reasonable attorney’s fee even though a foreclosure proceeding does not follow, and such fee shall become so much additional indebtedness secured by this Deed of Trust. 7. That in the event of foreclosure of this Deed of Trust, all right, title, and interest of Grantor in and to any insurance policies then in force shall pass to the purchaser or grantee receiving a trustee’s deed as a result of such foreclosure sale. 8. That time is of the essence hereof, and if default be made in making any payment or reimbursement according to the terms of the Carry-Back Note or this Deed of Trust, or any part thereof, or if there is a breach in any of the covenants and agreements therein or herein, or if proceedings are instituted to enforce any other lien upon said property, or upon the filing of a proceeding in bankruptcy by or against Grantor, or if Grantor shall abandon any of said Property, and if such events are not cured pursuant to the terms of the Lease or Sublease (such uncured event, an “Event of Default”) then in any of such Event of Default and regardless of any other remedy Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 171 of 607 available, the whole of the indebtedness hereby secured and the interest thereon may at once, at the option of and upon notice by the legal holder thereof, become due and payable, and this Deed of Trust may be foreclosed in the manner provided for herein and with the same effect as if said indebtedness had matured. 9. That in case of any Event of Default, the Lender shall have the right of foreclosure hereunder, and thereupon the Lender shall at once become entitled to possession, use, and enjoyment of the Property aforesaid, and to the rents, issues, and profits thereof, from the accruing of such right and during the pendency of foreclosure proceedings, if any there be; and as additional security and in confirmation thereof, Grantor hereby assigns and sets over to the Lender all such rents, issues, and profits due or to become due under the Lease or Sublease, together with the right of possession and the right to rent the Property as the Lender may deem proper, without notice but upon the application to a Court to have a receiver appointed therefor, and together with the right to apply net rentals after expenses to the indebtedness due. Upon receipt of a written request from the Lender, all tenants of said premises under the Lease or Sublease are hereby directed to pay promptly all rent due thereunder as it falls due directly to the Lender or manager designated by the Lender. Such possession, use, enjoyment, rents, issues, and profits shall at once be delivered to the Lender or the holder of the Carry-Back Note on request, and on refusal, the delivery of such possession may be enforced by any appropriate civil suit or proceeding, and the Lender or the holder of the Carry-Back Note shall be entitled to a receiver for said property, and of the rents, issues, and profits thereof, including the time covered by foreclosure proceedings, and shall be entitled thereto as a matter of right without regard to the solvency or insolvency of Grantor or of the then owner of said property and without regard to the value of the property. Such receiver may be appointed by any Court of competent jurisdiction upon ex parte application and without notice. Notice, and any such application and notice being hereby expressly waived and consented to by Grantor for and on its own behalf and on behalf of its heirs, assigns, and legal representatives, and all persons claiming by, through, or under it, and all rents, issues and profits, income and revenue of said Property shall be applied by such receiver according to law and the orders and directions of the Court. 10. That each right, power, and remedy herein conferred is cumulative of every other right, power, and remedy of the Lender whether herein or by law or by the Carry-Back Note conferred and may be enforced concurrently therewith; provided that taking of possession and the foreclosure sale of the premise shall operate to release Grantor in whole of any and all amounts remaining due on the Carry-Back Note, it being the intent that the Carry-Back Note and this Deed of Trust are made without recourse to Grantor for any deficiency amounts following foreclo sure. That no waiver, express or implied, of the performance of any obligation, agreement, or covenant hereof shall be deemed or taken to be a waiver of any other or succeeding obligation, agreement, or covenant of the Carry-Back Note or of this Deed of Trust; that no payment or advancement by the Lender hereunder on behalf of the Grantor shall be deemed a waiver of the breach occurring or the right to elect to foreclose this Deed of Trust; and the indulgence of the Lender to Grantor in not exercising its option to declare the indebtedness to be due and payable upon the happening of any of the events or conditions herein described shall not, even though such indulgence be repeated and extended, be construed as a waiver of the right of the Lender to exercise such option at any time thereafter and without notice to Grantor. Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 172 of 607 11. That it is hereby acknowledged by Grantor that the Carry-Back Note and this Deed of Trust may be assigned by Lender. 12. That all of the covenants and agreements herein contained shall run with the Property and shall extend to and be binding upon the heirs, executors, legal representatives, successors, and assigns (whether voluntary or involuntary by operation of law) of the Lender. Whenever used, the singular shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. 13. That all payment obligations of the Grantor under the Carry-Back Note and this Deed of Trust are special, limited revenue obligations of Grantor, payable solely from amounts received by Grantor from the City pursuant to the Lease or the Sublease or realized by foreclosure under this Deed of Trust; and that the obligations of the City under the Lease Agreement (and the obligations of the County under the Sublease Agreement) are subject to renewal of the Agreement each year by the City (or County under the Sublease) at its discretion, and the City’s obligations are subject to the City Council appropriation each year from the City’s Open Space and Street Fund maintained under Section 3-2-39, Boulder Revised Code 1981. 14. This Deed of Trust shall be released upon payment in full of the Carry-Back Note. A release of this Deed of Trust shall release any assignment of rents given as additional security. The Public Trustee may, upon production of the Carry-Back Note secured hereby duly canceled, release this Deed of Trust without further showing as to additional advances and without liability for so doing, and such release shall constitute a release of the li en of any such advances. When and if any release is required, Grantor shall pay the expense thereof. [The remainder of this page is intentionally blank.] Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 173 of 607 IN WITNESS WHEREOF, Grantor has hereunto set its hands the day and year first above written. [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer STATE OF COLORADO ) ) ss. COUNTY OF BOULDER ) The foregoing instrument was acknowledged before me this ______ day of ____________, ______, by Suzanne Jones and Cheryl Pattelli, as President and Secretary-Treasurer, respectively, of The Boulder Municipal Property Authority, a Colorado non-profit corporation. WITNESS my hand and official seal. [SEAL] Notary Public Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 174 of 607 EXHIBIT A PAYMENT SCHEDULE Year Principal Amount Interest Amount Total Payment 2019 $246,643.51 $244,125.00 $490,768.51 2020 255,276.03 235,492.48 490,768.51 2021 264,210.69 226,557.82 490,768.51 2022 273,458.07 217,310.44 490,768.51 2023 283,029.10 207,739.41 490,768.51 2024 292,935.12 197,833.39 490,768.51 2025 303,187.85 187,580.66 490,768.51 2026 313,799.42 176,969.09 490,768.51 2027 324,782.40 165,986.11 490,768.51 2028 336,149.79 154,618.72 490,768.51 2029 347,915.03 142,853.48 490,768.51 2030 360,092.06 130,676.45 490,768.51 2031 372,695.28 118,073.23 490,768.51 2032 385,739.61 105,028.90 490,768.51 2033 399,240.50 91,528.01 490,768.51 2034 413,213.92 77,554.59 490,768.51 2035 427,676.40 63,092.11 490,768.51 2036 442,645.08 48,123.43 490,768.51 2037 458,137.66 32,630.85 490,768.51 2038 474,172.47 16,596.04 490,768.51 Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 175 of 607 EXHIBIT B LEGAL DESCRIPTION OF ENCUMBERED PROPERTY Parcel 1: That part of the Northeast ¼ lying West of and adjoining the West line of the Denver & Salt Lake Rail Road right-of-way as described in Book 126 at Page 113, Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado. Parcel 2: The Northeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except so much thereof as lies West of the East line of railroad right of way as shown by deed recorded in Book 126 at Page 113, Jefferson County, Colorado records. Parcel 3: The South ½ of the South ½ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado and the Northwest ¼ of the Southwest ¼ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado; and The Southeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except that portion of said Section 1 conveyed to The Denver Northwestern and Pacific Railway Company by the Quit Claim Deed recorded January 19, 1903 in Book 121 at Page 180, of the Jefferson County, Colorado records, and Except those portions of said Sections 1 and 6 conveyed to Katherine T. O’Connor by the Warranty Deed recorded October 26, 193 in Book 347 at Page 159, of the Jefferson County, Colorado records. Parcel 4: A non-exclusive easement for ingress and egress purposes over and across the Northwest ¼ of Section 7, Township 2 South, Range 70 West of the 6th P.M., Jefferson County, Colorado, said easement being over an existing access road and being 20 feet on each side of the following described centerline: Beginning at a point on the North line of said Northwest ¼ of Section 7, from which point the Northwest corner of Section 7 bears North 88°46’26” West, a distance of 784.09 feet; thence along said centerline the following courses and distances: South 59°43’29” East, a distance of 5.41 feet to a point of curve; thence along a curve to the left having a radius of 143.37 feet, a central angle of 19°47’00”, an arc distance of 49.50 feet to a point of tangency; thence South 79°30’29” East, a distance of 155.12 feet to a point of curve; thence along a curve to the right having a radius of 316.01 feet, a central angle of 10°50’45”, an arc distance of 59.82 feet to a point of tangency; Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 176 of 607 thence South 68°39’43” East, a distance of 111.37 feet to a point of curve; thence along a curve to the right having a radius of 227.37 feet, a central angle of 19°57’19”, an arc distance of 79.19 feet to a point of tangency; thence South 48°42’24” East, a distance of 238.34 feet to a point of curve; thence along a curve to the left having a radius of 401.68 feet, a central angle of 16°59’28”, an arc distance of 119.12 feet to a point of tangency; thence South 65°41’53” East, a distance of 240.47 feet to a point of curve; thence along a curve to the right having a radius of 102.46 feet, a central angle of 60°42’17”, an arc distance of 108.56 feet to a point of tangency, said point being on the existing centerline of a road deeded to Jefferson County on August 6, 1935, by deed recorded in Book 374 at Page 140, and from which point the Northwest corner of Sectio n 7 bears North 72°14’59” West, a distance of 1862.34 feet. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not limited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 177 of 607 Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 178 of 607 EXHIBIT C SCHEDULE OF CERTAIN PERMITTED ENCUMBRANCES [To be taken from the Title Policy] Attachment F-2 Deed of Trust Jefferson Item 3L - Lippincott 2nd Reading City Council Meeting Page 179 of 607 LEASE PURCHASE AGREEMENT by and between THE BOULDER MUNICIPAL PROPERTY AUTHORITY, A COLORADO NONPROFIT CORPORATION, as Lessor and CITY OF BOULDER, COLORADO, A POLITICAL SUBDIVISION DULY ORGANIZED AND EXISTING UNDER THE CONSTITUTION AND LAWS OF THE STATE OF COLORADO AND ITS HOME RULE CHARTER, as Lessee [Closing Date] Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 180 of 607 (This Table of Contents is not a part of this Lease Purchase Agreement and is only for convenience of reference.) ARTICLE I DEFINITIONS ............................................................................................................................... 2 ARTICLE II REPRESENTATIONS, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants, and Warranties of the City ................................. 4 Section 2.2. Representations, Covenants, and Warranties of Lessor ................................... 4 ARTICLE III DEMISING CLAUSE ................................................................................................................... 6 ARTICLE IV LEASE TERM Section 4.1. Commencement of Lease Term; Renewals ..................................................... 6 Section 4.2. Termination of Lease Term ............................................................................. 7 ARTICLE V ENJOYMENT OF LEASED PROPERTY .................................................................................... 7 ARTICLE VI PAYMENTS BY THE CITY Section 6.1. Payments To Constitute Currently Budgeted Expenditures of the City .......... 8 Section 6.2. Base Rentals ..................................................................................................... 8 Section 6.3. Disposition of Base Rentals ............................................................................. 8 Section 6.4. Manner of Payment .......................................................................................... 8 Section 6.5. Expression of the City’s Need for the Leased Property: Determinations as to Fair Market Value and Fair Purchase Price ................... 9 Section 6.6. Nonappropriation ............................................................................................. 9 Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 181 of 607 ARTICLE VII ACQUISITION OF THE LEASED PROPERTY ....................................................................... 10 ARTICLE VIII TITLE TO THE LEASED PROPERTY LIMITATIONS ON ENCUMBRANCES Section 8.1. Title to the Leased Property ........................................................................... 10 Section 8.2. No Encumbrance, Mortgage, or Pledge of Leased Property ......................... 10 ARTICLE IX MAINTENANCE, TAXES, INSURANCE, AND OTHER CHARGES Section 9.1. Maintenance of the Leased Property by the City ........................................... 10 Section 9.2. Taxes, Other Governmental Charges, and Utility Charges............................ 10 Section 9.3. Provisions Regarding Casualty, Public Liability, and Property Damage Insurance ........................................................................................................ 11 ARTICLE X CONDEMNATION ..................................................................................................................... 11 ARTICLE XI DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 11.1. Disclaimer of Warranties ............................................................................... 11 Section 11.2. Further Assurances and Corrective Instruments ............................................ 12 Section 11.3. Lessor and City Representatives .................................................................... 12 Section 11.4. Compliance with Requirements ..................................................................... 12 Section 11.5. City Acknowledgment of Note ...................................................................... 12 Section 11.6. Tax Covenants ............................................................................................... 12 ARTICLE XII CONVEYANCE OF THE LEASED PROPERTY Section 12.1. Conveyance of the Leased Property .............................................................. 12 Section 12.2. Manner of Conveyance .................................................................................. 13 ARTICLE XIII PLEDGE, SUBLEASING, INDEMNIFICATION, MORTGAGING, AND SELLING Section 13.1. Pledge ............................................................................................................. 13 Section 13.2. Assignment and Subleasing by the City ........................................................ 13 Section 13.3. No Negligence ............................................................................................... 14 Section 13.4. Restriction on Mortgage or Sale of Leased Property ..................................... 14 Section 13.5. Right to Cure by Sublessee ............................................................................ 14 Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 182 of 607 ARTICLE XIV EVENTS OF DEFAULT AND REMEDIES Section 14.1. Events of Default Defined ............................................................................. 14 Section 14.2. Remedies on Default ...................................................................................... 15 Section 14.3. Limitations on Remedies ............................................................................... 16 Section 14.4. No Remedy Exclusive.................................................................................... 16 Section 14.5. Waivers .......................................................................................................... 16 Section 14.6. Agreement To Pay Attorneys’ Fees and Expenses ........................................ 16 Section 14.7. Waiver of Appraisement, Valuation, Stay, Extension, and Redemption Laws ............................................................................................................... 16 ARTICLE XV MISCELLANEOUS Section 15.1. Notices ........................................................................................................... 17 Section 15.2. Binding Effect ................................................................................................ 17 Section 15.3. Amendments, Changes, and Modifications ................................................... 17 Section 15.4. Net Lease ....................................................................................................... 17 Section 15.5. Payments Due on Holidays ............................................................................ 17 Section 15.6. Severability .................................................................................................... 17 Section 15.7. Execution in Counterparts.............................................................................. 17 Section 15.8. Applicable Law .............................................................................................. 18 Section 15.9. Captions ......................................................................................................... 18 EXHIBIT A LEGAL DESCRIPTION........................................................................................... 1 EXHIBIT B SCHEDULE OF BASE RENTALS .......................................................................... 1 EXHIBIT C ENCUMBRANCES .................................................................................................. 1 Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 183 of 607 LEASE PURCHASE AGREEMENT THIS LEASE PURCHASE AGREEMENT, dated __________, together with any amendments hereto made in accordance herewith (this “Lease”), entered into by and between THE BOULDER MUNICIPAL PROPERTY AUTHORITY (the “Lessor”), as the lessor hereunder, a non-profit corporation duly organized, existing, and in good standing under the laws of the State of Colorado, and the CITY OF BOULDER, COLORADO (the “City”), as lessee hereunder, a political subdivision duly organized and existing under the Constitution and laws of the State of Colorado and the home rule charter of the City; W I T N E S S E T H : WHEREAS, the City is a duly and regularly created, organized, and existing politic al subdivision of the State of Colorado, existing as such under and by virtue of the Constitution and laws of the State of Colorado and the home rule charter of the City; and WHEREAS, the City has determined, and hereby determines, that it is necessary and in the best interests of the City that certain property be acquired by the City and used for open space purposes (the “Leased Property”); and WHEREAS, for purposes of financing the acquisition of the Leased Property, the City has determined and hereby determines that it is in the best interests of the City that the City and the Lessor enter into this Lease to provide for the acquisition of the Leased Property; and WHEREAS, the Lessor is a non-profit corporation, duly organized, existing, and in good standing under the laws of the State of Colorado, and is duly qualified to do business in the State of Colorado; and under its articles and bylaws, the Lessor is authorized to own and hold real and personal property and to lease the same as lessor and to act in the manner contemplated herein; and WHEREAS, the Lessor will issue a note in the principal amount of $6,975,000 (the “Note”), payable from payments made under this Lease; and WHEREAS, the obligation of the City to pay Base Rentals hereunder (as herei nafter defined) shall be from year to year only; shall constitute currently budgeted expenditures of the City; shall not constitute a mandatory charge or requirement in any ensuing budget year; and shall not constitute a general obligation or other indebtedness of the City within the meaning of any constitutional, statutory, or home rule limitation or requirement concerning the creation of indebtedness, nor a mandatory payment obligation of the City in any ensuing fiscal year beyond any fiscal year during which this Lease shall be in effect; and WHEREAS, neither this Lease nor the issuance of the Note shall directly or indirectly obligate the City to make any payments beyond those appropriated for any fiscal year during which this Lease shall be in effect; and WHEREAS, the Lessor desires to lease the Leased Property to the City, and the City desires to lease the Leased Property from the Lessor, pursuant to the terms and conditions and for the purposes set forth herein; Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 184 of 607 NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows: ARTICLE I DEFINITIONS The following terms will have the meanings specified below unless the context clearly requires otherwise: “Base Rentals” means the payments payable b y the City pursuant to Section 6.2 of this Lease and Exhibit B hereto, during the Original Term and any Renewal Term, which constitute the payments payable by the City for and in consideration of the right to use the Leased Property during such Original Term or Renewal Term. “City” means the City of Boulder, Colorado, or any successor to its functions. “City Representative” means the City Manager or any other person at the time designated to act on behalf of the City for the purpose of performing any act un der this Lease by a written certificate furnished to the Lessor containing the specimen signature of such person or persons and signed on behalf of the City by the Mayor. “County” has the meaning given such term in Section 13.2(a) of this Lease. “County Cure” has the meaning given such term in Section 13.5 of this Lease. “County Cure Notice” has the meaning given such term in Section 13.5 of this Lease “County Sublease” has the meaning given such term in Section 13.2(a) of this Lease. “Event of Default” means one or more events of default as defined in Section 14.1 of this Lease. “Event of Nonappropriation” means a nonrenewal of this Lease by the City, determined by the failure of the City, for any reason, to budget and appropriate, specifically with respect to this Lease, moneys sufficient to pay all Base Rentals, as provided in Section 6.6 of this Lease. “Force Majeure” means, without limitation, the following: Acts of God; strikes, lockouts, or other industrial disturbances; acts of public enemies; orders of restraints of any kind of the government of the United States of America, or of the State, or any of their departments, agencies, or officials, or any civil or military authority; insurrection; riots; landslides; earthquakes; fires; storms; droughts; floods; explosions; breakage or accidents to machinery, transmission pipes, or canals; or any other cause or event not within the control of the Lessor or the City. “Independent Counsel” means an attorney duly admitted to the practice of law before the highest court in the State and who is not an employee of the Lessor, the Public Trustee or the City. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 185 of 607 “Lease” means this Lease Purchase Agreement and any amendments or supplements hereto, including the Exhibits attached hereto. “Lease Term” means the Original Term and any Renewal Terms as to which the City may exercise its option to renew this Lease, as further provided under Section 4.1 of this Lease; subject to the terms and provisions of Sections 4.2, 6.1, and 6.6 of this Lease. “Lease Term” refers to the time during which the City is the Lessee under this Lease; provided, however, certain provisions of this Lease survive the termination of the Lease Term, as further provided in Section 4.2 of this Lease. “Leased Property” means the land to be acquired for open space described in Exhibit A hereto. “Lessor” means The Boulder Municipal Property Authority, a Colorado nonprofit corporation, acting as Lessor under this Lease or any successor thereto. “Lessor Representative” means any of the following: (i) the President of the Lessor; (ii) any Vice-President of the Lessor; (iii) the Secretary-Treasurer of the Lessor; or (iv) any other person or persons at the time designated to act on behalf of the Lessor for purposes of performing any act on behalf of the Lessor under this Lease by a written certificate furnished to the City containing the specimen signature of such person or persons and signed on behalf of the Lessor by the President of the Lessor. “Note” means the $6,975,000 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property), Series 2018A, issued by the Lessor. “Note Holder” means the registered owner of the Note. “Note Resolution” means the resolution of the Board of Directors of the Lessor authorizing the issuance of the Note. “Original Term” means the portion of the Lease Term which terminates on December 31, _____. “Permitted Encumbrances” means, as of any particular time: (i) liens for taxes and assessments not then delinquent, or liens which may remain unpaid pursuant to the provisions of Article VIII and Article IX of this Lease; (ii) this Lease and the Deed of Trust; (iii) utility, access, and other easements and rights of way, restrictions and exceptions other than those set forth in clause (vi) below which do not, in the opinion of the City Representative, interfere with or impair the Leased Property; (iv) any financing statements filed to perfect security interests pursuant to this Lease or the Deed of Trust; (v) such minor defects, irregularities, encumbrances, and clouds on title as normally exist with respect to property of the general character of the Leased Property and as do not, in the opinion of the City Representative, materially impair title to the Leased Property; and (vi) those encumbrances and exceptions to title set forth in Exhibit C to this Lease. “Purchase Option Price” means the amount payable, at the option of the City, for the purpose of terminating this Lease and purchasing the Leased Property, which amount shall be Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 186 of 607 equal to such amount as shall be necessary to discharge the Note in the manner provided in the Note Resolution. “Renewal Term” means any optional Renewal Term of the Lease Term as provided in Article IV of this Lease. “Revenues” means (i) the Base Rentals; and (ii) all other revenues derived from this Lease, if any. “State” means the State of Colorado. ARTICLE II REPRESENTATIONS, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants, and Warranties of the City. The City represents, covenants, and warrants for the benefit of the Lessor as follows: (a) The City is a political subdivision duly organized and existing within the State under the Constitution of the State and the home rule charter of the City. The City is authorized by law to enter into the transactions contemplated by this Lease and to carry out its obligations hereunder. The City has duly authorized and approved the execution and delivery of this Lease and other documents related to this transaction. (b) During the Lease Term, the Leased Property will at all times be used by the City for the purpose of performing its lawful governmental functions (except to the extent that subleasing the Leased Property by the City is permitted by Section 13.2 of this Lease). (c) Neither the execution and delivery hereof, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby conflicts with or results in a breach of the terms, conditions, or provisions of any restriction, or any agreement, or instruments to which the City is now a party or by which the City is bound, or constitutes a default under any of the foregoing, or results in the creation or imposition of any lien or encumbrance whatsoever upon any of the property or assets of the City. Section 2.2. Representations, Covenants, and Warranties of Lessor. The Lessor represents, covenants, and warrants for the benefit of the City as follows: (a) The Lessor is a corporation duly organized, existing, and in good standing under the laws of the State, is duly qualified to do business in the State, has all necessary power and authority to purchase the Leased Property and to enter into and perform and observe the covenants and agreements on its part contained in this Lease, is possessed of full power and authority to own and hold real and personal property, and to lease the same as Lessor, and by proper action has duly authorized the execution and delivery of this Lease. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 187 of 607 (b) The Lessor will not pledge or assign the Revenues or any of its other rights under this Lease except to secure the Note, and the Lessor will not mortgage or encumber the Leased Property except for Permitted Encumbrances. (c) Neither the execution and delivery hereof, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby conflicts with or results in a breach of the terms, conditions, and provisions of any restriction, or any agreement, or instrument to which the Lessor is now a party or by which the Lessor is bound, or constitutes a default under any of the foregoing and will not conflict with or constitute a violation of any constitutional or statutory provision or order, rule, regulation, decree or ordinance of any court, government, or governmental authority having jurisdiction over the Lessor or its property, and which conflict or violation will have a material adverse effect on the Lessor, the Leased Property, or its operation. (d) The Lessor acknowledges and recognizes that this Lease will be terminated at the end of the Original Term or any Renewal Term in the event that sufficient funds are not budgeted and appropriated by the City, specifically with respect to this Lease, to continue paying all Base Rentals during the next occurring Renewal Term, and that the acts of budgeting and appropriating funds are legislative acts and, as such, are solely within the discretion of the City. (e) The Lessor agrees that so long as the Note is outstanding, it will maintain its existence, will continue in good standing in the State, will maintain its principal place of business in the State, will not dissolve, and will not consolidate with or merge into another legal entity or permit one or more other legal entities to consolidate with or merge into it, provided that Lessor may, without violating the agreement contained in this subparagraph, consolidate with or merge into another legal entity, or permit one or more legal entities to consolidate with or merge into it, provided that: (i) the surviving, resulting, or transferee legal entity, as the case may be, shall be a legal entity organized and existing under the laws of one of the states of the United States of America, shall be qualified to do business in the State, shall be a non-profit or proprietary entity then permitted to own and hold real and personal property such as the Leased Property and to lease the same as Lessor, and shall assume in writing all of the obligations of the Lessor under this Lease, in which event the City shall release the Lessor in writing, concurrently with and contingent upo n such assumption, from all obligations hereunder; (ii) prior to such consolidation, merger, or transfer, the City will be furnished with the opinion of nationally recognized municipal bond counsel acceptable to the City to the effect that such transaction will not affect the tax-exempt status of the Note; and (iii) prior to such consolidation, merger, or transfer, the City shall be furnished certificates from the chief executive officer of the Lessor and of the surviving, resulting, or transferee legal entity stating that in the opinion of such officers none of the covenants contained in this Lease or the Note will be violated as a result of such consolidation, merger, or transfer. (f) There is no litigation or proceeding pending or, to the knowledge of the Lessor, threatened against the Lessor or any other person affecting the right of the Lessor to execute or deliver this Lease, or the Note, or to comply with its obligations under this Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 188 of 607 Lease or the Note. Neither the execution and delivery of this Lease and the Note by the Lessor, nor compliance by the Lessor with its obligations under this Lease and the Note require the approval of any regulatory body, any parent company, or any other entity, which approval has not been obtained. (g) This Lease constitutes a legal, valid, and binding obligation of the Lessor enforceable in accordance with its terms. ARTICLE III DEMISING CLAUSE The Lessor demises and leases the Leased Property to the City, and the City leases the Leased Property from the Lessor, in accordance with the provisi ons of this Lease, subject only to Permitted Encumbrances, to have and to hold for the Original Term and the Renewal Terms, if any. ARTICLE IV LEASE TERM Section 4.1. Commencement of Lease Term; Renewals. The Lease Term shall commence as of __________, 2018. The Original Term shall terminate on December 31, 2018. The Lease Term may be continued, solely at the option of the City, to the first Renewal Term for an additional year and for each of the additional Renewal Terms thereafter, each of one year in duration, except that the final Renewal Term, if any, shall commence on January 1, 2038, and shall terminate on __________, 2038. In the event that the City shall determine, for any reason, not to renew this Lease, the City shall give written notice to such effect to the Lessor not less than 30 days prior to the end of the then current Original or Renewal Term; provided, however, that a failure to give such notice shall not constitute an Event of Default, nor prevent the City from declining to renew this Lease, nor result in any liability on the part of the City. The option of the City to renew or not to renew this Lease shall be conclusively determined by whether or not the City Council has, on or before the December 31, immediately preceding the commencement of any Renewal Term, budgeted and appropriated, specifically with respect to this Lease, moneys sufficient to pay all the Base Rentals for such ensuing Renewal Term, all as further provided in Section 6.6 of this Lease. It is the intention of the parties hereto that the decision to renew or not to renew this Lease shall be made solely by the City Council and not by any other City officer, and the City Manager of the City (or any other officer at any time charged with the responsibility of formulating budget proposals) is hereby directed to include in the budget proposals submitted to the City Council, in any year in which this Lease shall be in effect, items for all payments required for the ensuing Renewal Term under this Lease. The City shall in any event, whether or not this Lease is to be renewed, furnish the Lessor with copies of its annual budget promptly after the budget is adopted. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 189 of 607 The terms and conditions during any Renewal Term shall be the same as the terms and conditions during the Original Term, except that the Base Rentals shall be as provided in Exhibit B to this Lease. Section 4.2. Termination of Lease Term. The Lease Term shall terminate upon the earliest of any of the following events: (a) the expiration of the Original Term or any Renewal Term during which there occurs an Event of Nonappropriation (which is not thereafter waived) pursuant to Article VI of this Lease and there is no County Cure as set forth in Section 13.5; (b) the purchase by the City of the Leased Property as provided in Article XII of this Lease; (c) payment in full of the Note; (d) an Event of Default and termination of the Lease Term under Article XIV of this Lease and there is no County Cure as set forth in Section 13.5; or (e) __________, 2038, which date constitutes the last day of the final Renewal Term of this Lease, or such later date as all Base Rentals required hereunder shall be paid. Termination of the Lease Term shall terminate all obligations of the City under this Lease and shall terminate the rights of the City to possession of the Leased Property under this Lease (except to the extent of any conveyance pursuant to Article XII of this Lease and except to the extent there is a County Cure as set forth in Section 13.5). ARTICLE V ENJOYMENT OF LEASED PROPERTY The Lessor hereby covenants that the City shall during the Lease Term peaceably and quietly have and hold and enjoy the Leased Property without suit, trouble, or hindrance from the Lessor, except as expressly required or permitted by this Lease or the Indenture. The Lessor shall not interfere with the quiet use and enjoyment of the Leased Property by the City during the Lease Term, so long as the Lease Term shall be in effect. The Lessor shall, at the request of the City and at the cost of the City, join and cooperate fully in any legal action in which the City asserts its right to such possession and enjoyment, or which involves the imposition of any taxes or other governmental charges on or in connection with the Leased Property. In addition, the City may, at its own expense, join in any legal action affecting its possession and enjoyment of the Leased Property and shall be joined (to the extent legally possible and at the expense of the City) in any action affecting its liabilities hereunder. Equitable title to the Leased Property shall be deemed to vest in the City, subject to the rights of the Lessor under this Lease and the Note Holder under the Deed of Trust, and the City’s interest created hereby in the Leased Property shall be prior to any other interest granted or deemed granted by law by the Lessor. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 190 of 607 ARTICLE VI PAYMENTS BY THE CITY Section 6.1. Payments To Constitute Currently Budgeted Expenditures of the City. The City and the Lessor acknowledge and agree that the Base Rentals hereunder shall constitute currently budgeted expenditures of the City. The obligations of the City under this Lease shall be from year to year only (as further provided in Sections 4.1, 4.2, 6.2, and 6.6 hereof) and shall not constitute a mandatory payment obligation of the City in any fiscal year beyond a fiscal year during which this Lease shall be in effect. No provision of this Lease shall be construed or interpreted as creating a general obligation or other indebtedness of the City within the meaning of any constitutional, statutory, or home rule debt limitation. No provision of this Lease shall be construed or interpreted as creating a delegation of governmental powers nor as a donation by or a lending of the credit of the City within the meaning of Section 1 or 2 of Article XI of the Constitution of the State. Neither this Lease nor the issuance of the Note shall directly or indirectly obligate the City to make any payments beyond those appropriated for any fiscal year in which this Lease shall be in effect. The City shall be under no obligation to exercise its option to purchase the Leased Property. No provision of this Lease shall be construed to pledge or to create a lien on any class or source of City moneys, nor shall any provision of this Lease restrict the future issuance of any City bonds or obligations payable from any class or source of City moneys. Section 6.2. Base Rentals. The City shall pay Base Rentals directly to the Lessor during the Original Term and any Renewal Terms, on the due dates set forth in Exhibit B to this Lease. The Base Rentals during the Original Term and any Renewal Terms shall be in the amounts in the “Total Base Rentals” columns, as set forth in Exhibit B to this Lease. The initial Base Rentals, if any, plus other good and valuable consideration to be paid by the City on the date hereof, shall be in consideration for the use of the Leased Property by the City from the time of delivery of this Lease until December 31, 2018. Thereafter, Base Rentals due on any (P&I due date) shall be in consideration for the use of the Leased Property by the City from the immediately preceding January 1 to the immediately following December 31. Section 6.3. Disposition of Base Rentals. Upon receipt by the Lessor of each payment of Base Rentals, the Lessor shall apply the amount of such Base Rentals to payment of the Note. Section 6.4. Manner of Payment. The Base Rentals and, if paid, the Purchase Option Price, shall be paid in lawful moneys of the United States of America to the Lessor at its principal office. The obligation of the City to pay the Base Rentals required under this Article and other sections hereof, during the Lease Term, shall be absolute and unconditional, and payment of the Base Rentals shall not be abated through accident or unforeseen circumstances. Notwithstanding any dispute between the City and the Lessor, the City shall, during the Lease Term, make all payments of Base Rentals when due and shall not withhold any Base Rentals pending final resolution of such dispute, nor shall the City assert any right of set-off or counterclaim against its obligation to make such payments required hereunder. No action or inaction on the part of the Lessor shall affect the City’s obligation to pay all Base Rentals during the Lease Term. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 191 of 607 Section 6.5. Expression of the City’s Need for the Leased Property: Determinations as to Fair Market Value and Fair Purchase Price. The City hereby declares its current need for the Leased Property. It is hereby declared to be the present intention and expectation of the City that this Lease will be renewed annually until title to the Leased Property is acquired by the City pursuant to this Lease; but this declaration shall not be construed as contractually obligating or otherwise binding the City. The City and the Lessor hereby agree and determine that based upon recent appraisals of the Leased Property, the price to be paid for the Leased Property represents the fair market value of the Leased Property; that the Base Rentals hereunder during the Original Term and any Renewal Term represent the fair value of the use of the Leased Property; and that the Purchase Option Price represents the fair purchase price of the Leased Property. The City hereby determines that the Base Rentals do not exceed a reasonable amount so as to place the City under an economic or practical compulsion to renew this Lease or to exercise its option to purchase the Leased Property hereunder. In making such determinations, the City and the Lessor have given consideration to the current appraised value of the Leased Property, the uses and purposes for which the Leased Property will be employed by the City, the benefit to the City by reason of the acquisition of the Leased Property, and the use and occupancy of the Leased Property pursuant to the terms and provisions of this Lease, the option of the City to purchase the Leased Property, and the expected eventual vesting of title to the Leased Property in the City. The City hereby determines and declares that the acquisition of the Leased Property and the leasing of the Leased Property pursuant to this Lease will result in a Leased Property of comparable quality and meeting the same requirements and standards as would be necessary if the acquisition of the Leased Property were performed by the City other than pursuant to this Lease. The City hereby determines and declares that the period during which the City has an option to purchase the Leased Property (i.e., the maximum term of this Lease, including all Renewal Terms) does not exceed the useful life of the Leased Property. Section 6.6. Nonappropriation. In the event that the City Council shall not budget and appropriate, specifically with respect to this Lease, on or before December 31 of each year, moneys sufficient to pay all Base Rentals coming due for the next ensuing Renewal Term, an Event of Nonappropriation shall be deemed to have occurred. If an Event of Nonappropriation occurs, the City shall not be obligated to make payment of the Base Rentals or any other payments provided for herein which accrue after the last day of the Original or Renewal Term during which such Event of Nonappropriation occurs; provided, however, that, subject to the limitations of Section 14.3 hereof, the City shall continue to be liable for Base Rentals allocable to any period during which the City shall continue to occupy the Leased Property. The City shall in all events vacate the Leased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs except to the extent that there is a County Cure as set forth in Section 13.5. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 192 of 607 ARTICLE VII ACQUISITION OF THE LEASED PROPERTY The Lessor shall acquire the Leased Property as of the date of this Lease. Title to the Leased Property shall be held by the Lessor, subject only to Permitted Encumbrances and as otherwise provided in Article V hereof. ARTICLE VIII TITLE TO THE LEASED PROPERTY LIMITATIONS ON ENCUMBRANCES Section 8.1. Title to the Leased Property. Title to the Leased Property and any and all permanent additions and modifications to or replacements of any portion of the Leased Property shall be held in the name of the Lessor, subject only to Permitted Encumbrances and as otherwise provided in Article V hereof, until foreclosed on or conveyed as provided in Article XII o f this Lease, notwithstanding: (i) the occurrence of an uncured Event of Nonappropriation as provided in Section 6.6 of this Lease or one or more uncured Events of Default as defined in Section 14.1 of this Lease; (ii) the occurrence of any event of condemnation as provided in Article X of this Lease; or (iii) the uncured violation by the Lessor of any provision of this Lease. The City shall have no right, title, or interest in the Leased Property or any additions and modifications to or replacements of any portion of the Leased Property, except as expressly set forth in this Lease. Section 8.2. No Encumbrance, Mortgage, or Pledge of Leased Property. The City shall not permit any lien to be perfected or remain against the Leased Property except Permitted Encumbrances. Neither the Lessor nor the City shall directly or indirectly create, incur, assume, or suffer to exist any mortgage, pledge, lien, charge, encumbrance, or claim on or with respect to the Leased Property, except Permitted Encumbrances. The City shall promptly, at its own expense, take such action as may be necessary to duly discharge any such unauthorized mortgage, pledge, lien, charge, encumbrance, or claim not excepted above which it shall have created, incurred, or suffered to exist. The Lessor shall promptly, at its own expense, take such action as may be necessary to duly discharge any such unauthorized mortgage, pledge, lien, charge, encumbrance, or claim not excepted above which it shall have created or incurred. ARTICLE IX MAINTENANCE, TAXES, INSURANCE, AND OTHER CHARGES Section 9.1. Maintenance of the Leased Property by the City. The City agrees that, at all times during the Lease Term, the City will maintain, preserve, and keep the Leased Property or cause the Leased Property to be maintained, preserved, and kept, with the appurtenances and every part and parcel thereof, in good repair, working order, and condition. The Lessor shall have no responsibility in any of these matters. Section 9.2. Taxes, Other Governmental Charges, and Utility Charges. In the event that the Leased Property or any portion thereof shall, for any reason, be deemed subject to taxation, Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 193 of 607 assessments, or charges lawfully made by any governmental body, the City shall, during the Lease Term, pay the amount of all such taxes, assessments, and governmental charges. With respect to special assessments or other governmental charges which may be lawfully paid in installments over a period of years, the City shall be obligated to provide only for such installments as are required to be paid during the Original or any Renewal Term. The City shall not allow any liens for taxes, assessments, or governmental charges to exist with respect to the Leased Property or any portion thereof (including, without limitation, any taxes levied upon the Leased Property or any portion thereof which, if not paid, will become a charge on the rentals and receipts from the Leased Property or any portion thereof or any interest therein, including the interest of the Lessor), or the rentals and revenues derived therefrom or hereunder. The City may, at the expense and in the name of the City, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments, utility or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the Lessor shall notify the City that, in the opinion of Independent Counsel, by nonpayment of any such items, the security afforded pursuant to the Deed of Trust of the Lessor will be materially endangered or the Leased Property or any portion thereof will be subject to loss or forfeiture, or the Lessor will be subject to liability, in which event such taxes, assessments, utility or other charges shall be paid forthwith (provided, however, that such payment shall not constitute a waiver of the right to continue to contest such taxes, assessments, utility or other charges). Section 9.3. Provisions Regarding Casualty, Public Liability, and Property Damage Insurance. The City shall cause casualty and property damage insurance to be carried and maintained with respect to the Leased Property in an amount deemed necessary and reasonable by the City. ARTICLE X CONDEMNATION If the Leased Property shall be taken by the exercise of the power of eminent domain, the City shall be obligated to continue to pay Base Rentals hereunder for the then current term of this Lease (i.e., the Original Term or Renewal Term, as the case may be). Any condemnation award shall be applied first to Base Rentals when due, and any balance shall be paid to the Lessor to the extent that this Lease has been terminated. ARTICLE XI DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 11.1. Disclaimer of Warranties. THE LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OR FITNESS FOR USE OF THE LEASED PROPERTY, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE LEASED PROPERTY. The City hereby acknowledges and declares that the City is solely responsible for the Leased Property and for the Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 194 of 607 operation and maintenance of the Leased Property during the Lease Term, and that the Lessor has no responsibility therefor. In no event shall the Lessor be liable for any direct or indirect, incidental, special, or consequential damage in connection with or arising out of this Lease or the existence, furnishing, functioning, or use by the City of any i tem, product or service provided for herein. Section 11.2. Further Assurances and Corrective Instruments. The Lessor and the City agree that they will, from time to time, execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Leased Property hereby leased or intended so to be, or for otherwise carrying out the intention hereof. Section 11.3. Lessor and City Representatives. Whenever under the provisions hereof the approval of the Lessor or the City is required to take some action at the request of the other, unless otherwise provided, such approval or such request shall be given for the Lessor by the Lessor Representative, and for the City by the City Representative, and the Lessor and the City shall be authorized to act on any such approval or request. Section 11.4. Compliance with Requirements. During the Lease Term, the City and the Lessor shall observe and comply promptly with all current and future orders of all courts having jurisdiction over the Leased Property or any portion thereof, and all current and future requirements of all insurance companies writing policies covering the Leased Property or any portion thereof. Section 11.5. City Acknowledgment of Note. The City approves, acknowledges, directs, and agrees to the issuance of the Note and the pledging of the Base Rentals hereunder to secure said Note. Section 11.6. Tax Covenants. The City covenants that it shall at all times do and perform all acts and things permitted by law and which are necessary or desirable in order to assure that interest paid by the Authority on the Note shall, for purposes of federal income taxation, not be includable in gross income under the Internal Revenue Code of 1986, as amended (the “Code”), or any other valid provision of law. In particular, but without limitation, the City further represents, warrants, and covenants that the Leased Property will not be used in a manner which will cause the Note to be considered a “private activity bond” within the meaning of the Code. ARTICLE XII CONVEYANCE OF THE LEASED PROPERTY Section 12.1. Conveyance of the Leased Property. The Lessor shall transfer and convey to the City the Leased Property in the manner provided for in Section 12.2 of this Lease; provided, however, that prior to such transfer and conveyance, either: (a) the City shall have paid the then applicable Purchase Option Price; or (b) the City shall have paid all Base Rentals set forth in Exhibit B hereto, for the Original Term and all Renewal Terms; or Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 195 of 607 (c) the Note shall have been paid in full. The City is hereby granted the option to terminate the Lease Term and to purchase the Leased Property upon payment by the City of the then applicable Purchase Option Price. Section 12.2. Manner of Conveyance. At the closing of any purchase or other conveyance of the Leased Property pursuant to Section 12.1 of this Lease, the Lessor shall execute and deliver to the City all necessary documents assigning, transferring, and conveying good and marketable title to the Leased Property, as the Leased Property then exists, subject to the following: (i) Permitted Encumbrances, other than this Lease and the Deed of Trust and any Financing Statements, indicating the City or the Lessor as the debtor and the Lessor or the Public Trustee as secured party, filed to perfect any security interests granted under the Lease or the Deed of Trust; (ii) all liens, encumbrances, and restrictions created or suffered to exist by the Lessor as required or permitted by this Lease, or the Deed of Trust, or arising as a result of any action taken, or omitted to be taken, by the Lessor as required or permitted by this Lease or the Deed of Trust; (iii) any lien or encumbrance created by action of the City; and (iv) those liens and encumbrances (if any) to which title to the Leased Property was subject when conveyed to the Lessor. ARTICLE XIII PLEDGE, SUBLEASING, INDEMNIFICATION, MORTGAGING, AND SELLING Section 13.1. Pledge. The parties hereto agree that the Lessor shall be entitled to pledge the Base Rentals and its remedies hereunder as security for the Note. Section 13.2. Assignment and Subleasing by the City. This Lease may not be assigned by the City for any reason. However, the Leased Property may be subleased, as a whole or in part, by the City without the necessity of obtaining the consent of the Lessor, subject, however, to each of the following conditions: (a) The Leased Property may be subleased, (i) in whole or in part, only to an agency, or department, or political subdivision of the State; or (ii) to another entity or entities, if, in the opinion of nationally recognized bond counsel acceptable to the Lessor, such sublease will not impair the exemption from federal income taxation of the interest on the Note. Specifically, the Leased Property may be subleased to Jefferson County, Colorado (the “County”), a body politic and corporate duly organized and validly existing under the laws of the State (the “County Sublease”) with rights of cure thereunder as contemplated pursuant to Section 13.5 below. (b) This Lease and the obligations of the City hereunder shall, at all times during the Original and any Renewal Terms, remain obligations of the City, and the City shall maintain its direct relationships with the Lessor, notwithstanding any sublease. (c) The City shall furnish or cause to be furnished to the Lessor a copy of any sublease agreement. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 196 of 607 (d) No sublease by the City shall cause the Leased Property to be used for any purpose which would adversely affect the exemption from federal income taxation of any interest on the Note, or which would violate the Constitution, statutes, or laws of the State, or the home rule charter of the City. Section 13.3. No Negligence. The City hereby covenants not to act negligently in connection with the Leased Property. Section 13.4. Restriction on Mortgage or Sale of Leased Property. The City and the Lessor agree that, except for: (i) the pledge by the Lessor of this Lease as security for the Note and mortgaging of the Leased Property pursuant to the Deed of Trust, which are hereby authorized and acknowledged; (ii) any exercise by the Public Trustee or the Lessor of the remedies afforded by this Lease; (iii) the right of the City to sublease all or a portion of the Leased Property pursuant to Section 13.2 of this Lease; and (iv) any conveyance to the City pursuant to Article XII of this Lease; neither the Lessor nor the City will mortgage, sell, assign, transfer, or convey the Leased Property or any portion thereof during the Lease Term. Section 13.5. Right to Cure by Sublessee. In connection with the County Sublease, the County, as the subtenant, shall have the right to cure any Event of Nonappropriation or Event of Default by the City hereunder as follows: Lessor shall deliver written notice to the County upon Lessor’s determination of an Event of Nonappropriation, an Event of Default or upon its determination of facts or events which, with the passage of time or notice or both would constitute an Event of Default (the “County Cure Notice”), whereupon the County shall have the right (i) in the Event of Nonappropriation by the City, the County shall have a period of thirty (30) days following receipt of the County Cure Notice to make the payment of the Base Rentals for the applicable Renewal Term, in which event the Event of Nonappropriation shall be deemed cured or (ii) in the Event of Default, the County shall have a period of thirty (30) days following receipt of the County Cure Notice to initiate a cure of the events comprising the Event of Default and to the extent that such cure is timely initiated and diligently pursued by the County, then the Event of Default shall be deemed cured by the County. The Lessor agrees to accept a cure performance by the County under this Section 13.5 (a “County Cure”) to the same extent as the City’s anticipated performance under this Lease. In the event of a County Cure for an Event of Nonappropriation hereunder, this Lease shall continue to another Renewal Year and, as long as either the City or the County by virtue of a County Cure, pays the Base Rentals, then the Renewal Term shall continue until the outside date contemplated in Section 4.2(e). ARTICLE XIV EVENTS OF DEFAULT AND REMEDIES Section 14.1. Events of Default Defined. Any one of the following shall be “Events of Default” under this Lease: (a) failure by the City to pay any Base Rentals during the Lease Term for a period of 25 days after written notice specifying such failure and requesting that it be remedied, shall be received by the City from the Lessor and there is no County Cure as set forth in Section 13.5; or Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 197 of 607 (b) failure by the City to vacate the Leased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs and there is no County Cure as set forth in Section 13.5; or (c) failure by the City to observe and perform any covenant, condition, or agreement on its part to be observed or performed, other than as referred to in (a) or (b), for a period of 45 days after written notice, specifying such failure and requesting that it be remedied, shall be given to the City by the Lessor, unless the Lessor shall agree in writing to an extension of such time prior to its expiration; provided, however, that if the failure stated in the notice cannot be corrected within the applicable period, the Lessor shall not withhold its consent to an extension of such time, if corrective action shall be instituted by the City within the applicable period and diligently pursued until the default is corrected and there is no County Cure as set forth in Section 13.5. The foregoing provisions of this Section are subject to the following limitations: (i) the City shall be obligated to pay the Base Rentals only during the Lease Term, except as otherwise expressly provided in this Lease; and (ii) if, by reason of Force Majeure, the City shall be unable, in whole or in part, to carry out any agreemen t on its part herein contained, other than the obligations on the part of the City contained in Article VI of this Lease, the City shall not be deemed in default during the continuance of such inability. The City agrees, however, to remedy, as promptly as legally and reasonably possible, the cause or causes preventing the City from carrying out its agreement; provided that the settlement of strikes, lockouts, and other industrial disturbances shall be entirely within the discretion of the City. Section 14.2. Remedies on Default. Whenever any Event of Default referred to in Section 14.1 of this Lease shall have happened and be continuing and if there is no County Cure as set forth in Section 13.5 within the time frame set forth therein, then the Lessor may terminate the Lease Term and may give notice to the City to vacate the Leased Property within 15 days from the date of such notice. After the occurrence of an uncured Event of Default, the Lessor shall be entitled to take one or any combination of the following additional remedial steps: (a) temporarily lease the Leased Property or any portion thereof, pending sale of the Leased Property; (b) recover from the City: (i) the portion of Base Rentals which would otherwise have been payable hereunder, allocable to any period in which the City continues to occupy the Leased Property; and (ii) Base Rentals which would otherwise have been payable by the City hereunder during the remainder, after the City vacates the Leased Property, of the Original or Renewal Term in which such Event of Default occurs; provided, however, that the Lessor shall be obligated to the City to use its best efforts to lease or sublease the Leased Property for the remainder of such Original or Renewal Term, as provided in clause (a) of this Section and the Net Proceeds of such leasing Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 198 of 607 shall be offset against the amount recoverable from the City under this clause (ii); and (c) take whatever action at law or in equity may appear necessary or desirable to enforce its right in and to the Leased Property under this Lease. Section 14.3. Limitations on Remedies. A judgment requiring a payment of money may be entered against the City by reason of an Event of Default only as to the City’s liabilities described in Section 14.2(b) of this Lease. A judgment requiring a payment of money may be entered against the City by reason of an Event of Nonappropriation only to the extent that the City fails to vacate the Leased Property as required by Section 6.6 of this Lease, and only as to the liabilities described in Section 14.2(b)(i) of this Lease. Notwithstanding Section 14.2(b)(ii) of this Lease, any Event of Default consisting of failure by the City to vacate the Leased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs shall not result in any liability for Base Rentals allocable to any period other than the period in which the City continues to occupy the Leased Property. Section 14.4. No Remedy Exclusive. Subject to Section 14.3 hereof, no remedy herein conferred upon or reserved to the Lessor is intended to be exclusive, and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, and the same may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Lessor to exercise any remedy reserved in this Article, it shall not be necessary to give any notice, other than such notice as may be required in this Article. Section 14.5. Waivers. In the event that any agreement contained herein should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. Section 14.6. Agreement To Pay Attorneys’ Fees and Expenses. In the event that either party hereto shall default under any of the provisions hereof and the nondefaulting party shall employ attorneys or incur other expenses for the collection of Base Rentals, or the enforcement of performance or observance of any obligation or agreement on the part of the defaulting party herein contained, the defaulting party agrees that it shall pay on demand therefor to the nondefaulting party the fees of such attorneys and such other expenses so incurred by the nondefaulting party, to the extent that such attorneys’ fees and expenses may be determined to be reasonable by a court of competent jurisdiction. Section 14.7. Waiver of Appraisement, Valuation, Stay, Extension, and Redemption Laws. The Lessor and the City agree, to the extent permitted by law, that in the case of a termination of the Lease Term by reason of an Event of Nonappropriation or an uncured Event of Default, neither the Lessor, nor the City, nor any one claiming through or under either of them shall or will set up claim or seek to take advantage of any appraisement, valuation, stay, extension, or redemption laws now or hereafter in force in order to prevent or hinder the enforcement of the Indenture; and the Lessor and the City, for themselves and all who may at any time claim through Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 199 of 607 or under either of them, each hereby waives, to the full extent that it may lawfully do so, the benefit of all such laws. ARTICLE XV MISCELLANEOUS Section 15.1. Notices. All notices, certificates, or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by certified or registered mail, postage prepaid, as follows: If to the City: Municipal Building, 1777 Broadway, Boulder, Colorado 80302, Attention: City Attorney; and if to the Lessor: Municipal Building, 1777 Broadway, Boulder, Colorado 80302, Attention: City Attorney. The City and the Lessor may, by written notice, designate any further or different addresses to which subsequent notices, certificates, or other communications shall be sent. Section 15.2. Binding Effect. This Lease shall inure to the benefit of and shall be binding upon the Lessor and the City and their respective successors and assigns, subject, however, to the limitations contained in Article XIII of this Lease. Section 15.3. Amendments, Changes, and Modifications. Except as otherwise provided in this Lease, subsequent to the delivery of the Note and prior to their payment in full, this Lease may not be effectively amended, changed, modified, or altered without the written consent of the Note Holder. Section 15.4. Net Lease. This Lease shall be deemed and construed to be a “net lease”, and the City shall pay absolutely net during the Lease Term, the Base Rentals and all other payments required hereunder, free of any deductions, and without abatement, deduction, or setoff (other than credits against Base Rentals expressly provided for in this Lease). Section 15.5. Payments Due on Holidays. If the date for making any payment, or the last day for performance of any act, or the exercising of any right, as provided in this Lease, shall be a legal holiday or a day on which banking institutions in the city in which the principal office of the Lessor is located are authorized by law to remain closed, such payment may be made, or act performed, or right exercised on the next succeeding day that is not a legal holiday or a day on which such banking institutions are not authorized by law to remain closed with the same force and effect as if done on the nominal date provided in this Lease. Section 15.6. Severability. In the event that any provision of this Lease, other than the requirement of the City to pay Base Rentals and the requirement of the Lessor to provide quiet enjoyment of the Leased Property and to convey the Leased Property to the City under the conditions set forth in Article XII of this Lease, shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 15.7. Execution in Counterparts. This Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 200 of 607 Section 15.8. Applicable Law. This Lease shall be governed by and construed in accordance with the laws of the State. Section 15.9. Captions. The captions of headings herein are for convenience only and in no way define, limit, or describe the scope or intent of any provisions or sections of the Lease. [End of text; signature pages follow.] Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 201 of 607 IN WITNESS WHEREOF, the Lessor has executed this Lease in its corporate name with its corporate seal hereunto affixed and attested by its duly authorized officers; and the City has caused this Lease to be executed in its name and the seal of the City affixed and attested by duly authorized officers thereof. All of the above are effective as of the date first above written. [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation, as the Lessor By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer [SEAL] CITY OF BOULDER, COLORADO, a political subdivision, as Lessee By Suzanne Jones, Mayor ATTEST: By Lynnette Beck, City Clerk Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 202 of 607 EXHIBIT A LEGAL DESCRIPTION Parcel 1: The Southeast ¼ of the Southeast ¼ of Section 36, Township 1 South, Range 71 West of the 6th P.M., County of Boulder, State of Colorado. Parcel 2: That part of the Northeast ¼ lying West of and adjoining the West line of the Denver & Salt Lake Rail Road right-of-way as described in Book 126 at Page 113, Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado. Parcel 3: The Northeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except so much thereof as lies West of the East line of railroad right of way as shown by deed recorded in Book 126 at Page 113, Jefferson County, Colorado records. Parcel 4: The South ½ of the South ½ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado and the Northwest ¼ of the Southwest ¼ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado; and The Southeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except that portion of said Section 1 conveyed to The Denver Northwestern and Pacific Railway Company by the Quit Claim Deed recorded January 19, 1903 in Book 121 at Page 180, of the Jefferson County, Colorado records, and Except those portions of said Sections 1 and 6 conveyed to Katherine T. O’Connor by the Warranty Deed recorded October 26, 193 in Book 347 at Page 159, of the Jefferson County, Colorado records. Parcel 5: A non-exclusive easement for ingress and egress purposes over and across the Northwest ¼ of Section 7, Township 2 South, Range 70 West of the 6th P.M., Jefferson County, Colorado, said easement being over an existing access road and being 20 feet on each side of the following described centerline: Beginning at a point on the North line of said Northwest ¼ of Section 7, from which point the Northwest corner of Section 7 bears North 88°46’26” West, a distance of 784.09 feet; thence along said centerline the following courses and distances: South 59°43’29” East, a distance of 5.41 feet Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 203 of 607 to a point of curve; thence along a curve to the left having a radius of 143.37 feet, a central angle of 19°47’00”, an arc distance of 49.50 feet to a point of tangency; thence South 79°30’29” East, a distance of 155.12 feet to a point of curve; thence along a curve to the right having a radius of 316.01 feet, a central angle of 10°50’45”, an arc distance of 59.82 feet to a point of tangency; thence South 68°39’43” East, a distance of 111.37 feet to a point of curve; thence along a curve to the right having a radius of 227.37 feet, a central angle of 19°57’19”, an arc distance of 79.19 feet to a point of tangency; thence South 48°42’24” East, a distance of 238.34 feet to a point of curve; thence along a curve to the left having a radius of 401.68 feet, a central angle of 16°59’28”, an arc distance of 119.12 feet to a point of tangency; thence South 65°41’53” East, a distance of 240.47 feet to a point of curve; thence along a curve to the right having a radius of 102.46 feet, a central angle of 60°42’17”, an arc distance of 108.56 feet to a point of tangency, said point being on the existing centerline of a road deeded to Jefferson County on August 6, 1935, by deed recorded in Book 374 at Page 140, and from which point the Northwest corner of Section 7 bears North 72°14’59” West, a distance of 1862.34 feet. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not li mited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 204 of 607 EXHIBIT B SCHEDULE OF BASE RENTALS Year Total Base Rental Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 205 of 607 EXHIBIT C ENCUMBRANCES Attachment G Lease Purchase Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 206 of 607 SUBLEASE by and between CITY OF BOULDER, COLORADO, as Sublessor and COUNTY OF JEFFERSON, STATE OF COLORADO, as Sublessee Dated as of [_____________] Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 207 of 607 ARTICLE I DEFINITIONS ............................................................................................................................... 2 ARTICLE II REPRESENTATIONS, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants and Warranties of the County ............................. 5 Section 2.2. Representations, Covenants and Warranties of City ........................................ 6 ARTICLE III DEMISING CLAUSE ................................................................................................................... 6 ARTICLE IV SUBLEASE TERM Section 4.1. Commencement of Sublease Term; Renewals ................................................ 7 Section 4.2. Termination of Sublease Term......................................................................... 7 ARTICLE V ENJOYMENT OF SUBLEASED PROPERTY ............................................................................ 8 ARTICLE VI PAYMENTS BY THE COUNTY Section 6.1. Payments To Constitute Currently Budgeted Expenditures of the County .............................................................................................................. 8 Section 6.2. Sublease Rentals .............................................................................................. 8 Section 6.3. Disposition of Sublease Rentals....................................................................... 9 Section 6.4. Manner of Payment .......................................................................................... 9 Section 6.5. Expression of the County’s Intention To Acquire the Subleased Property: Determinations As to Fair Market Value and Fair Purchase Price ................................................................................................................. 9 Section 6.6. Nonappropriation by the County ................................................................... 10 Section 6.7. Right to Cure Events Under the Lease ........................................................... 10 Section 6.8. Final Apportionment ...................................................................................... 10 ARTICLE VII ACQUISITION OF THE PROPERTY ....................................................................................... 11 ARTICLE VIII TITLE TO THE SUBLEASED PROPERTY LIMITATIONS ON ENCUMBRANCES Section 8.1. Title to the Subleased Property ...................................................................... 11 Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 208 of 607 Section 8.2. No Encumbrance, Mortgage, or Pledge of Subleased Property..................... 11 ARTICLE IX MAINTENANCE, TAXES, INSURANCE, AND OTHER CHARGES Section 9.1. Use and Maintenance of the Subleased Property ........................................... 12 Section 9.2. Taxes, Other Governmental Charges, and Utility Charges............................ 12 Section 9.3. Provisions Regarding Casualty, Public Liability, and Property Damage Insurance ........................................................................................................ 13 ARTICLE X CONDEMNATION ..................................................................................................................... 13 ARTICLE XI DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 11.1. Disclaimer of Warranties ............................................................................... 13 Section 11.2. Further Assurances and Corrective Instruments ............................................ 13 Section 11.3. Lessor and County Representatives ............................................................... 13 Section 11.4. Compliance With Requirements .................................................................... 13 Section 11.5. County Acknowledgment of Note ................................................................. 14 Section 11.6. Tax Covenants ............................................................................................... 14 ARTICLE XII CONVEYANCE OF THE SUBLEASED PROPERTY Section 12.1. Conveyance of the Subleased Property.......................................................... 14 Section 12.2. Manner of Conveyance .................................................................................. 14 ARTICLE XIII PLEDGE, SUBLEASING, MORTGAGING, AND COVENANTS Section 13.1. Pledge ............................................................................................................. 15 Section 13.2. Assignment and Subleasing ........................................................................... 15 Section 13.3. No Negligence ............................................................................................... 15 Section 13.4. Restriction on Mortgage or Transfer of Subleased Property ......................... 15 ARTICLE XIV EVENTS OF DEFAULT AND REMEDIES Section 14.1. Events of Default by County Defined ............................................................ 15 Section 14.2. Remedies on Default ...................................................................................... 16 Section 14.3. Limitations on Remedies ............................................................................... 16 Section 14.4. No Remedy Exclusive.................................................................................... 17 Section 14.5. Waivers .......................................................................................................... 17 Section 14.6. Agreement To Pay Attorneys’ Fees and Expenses ........................................ 17 Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 209 of 607 Section 14.7. Waiver of Appraisement, Valuation, Stay, Extension, and Redemption Laws ............................................................................................................... 17 Section 14.8. Default by the City; Remedies ....................................................................... 17 Section 14.9. Limitation of Damages .................................................................................. 17 ARTICLE XV MISCELLANEOUS Section 15.1. Notices ........................................................................................................... 18 Section 15.2. Binding Effect ................................................................................................ 18 Section 15.3. Amendments, Changes and Modifications .................................................... 18 Section 15.4. Net Lease ....................................................................................................... 18 Section 15.5. Payments Due on Holidays ............................................................................ 18 Section 15.6. Severability .................................................................................................... 18 Section 15.7. Execution in Counterparts.............................................................................. 18 Section 15.8. Applicable Law .............................................................................................. 19 Section 15.9. Captions ......................................................................................................... 19 EXHIBIT A LEGAL DESCRIPTION EXHIBIT B SCHEDULE OF SUBLEASE RENTALS EXHIBIT C ENCUMBRANCES Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 210 of 607 SUBLEASE THIS SUBLEASE, dated __________, together with any amendments hereto made in accordance herewith (this “Sublease”), is made and entered into this _____ day of __________, 20___, by and between CITY OF BOULDER, COLORADO (the “City” or “Sublessor”), a municipal corporation duly organized and existing as a home rule city under its home rule charter (the “Charter”), as sublessor hereunder, and COUNTY OF JEFFERSON, STATE OF COLORADO (the “County” or “Sublessee” and, together with the City or Sublessor, the “Parties” and each a “Party”), a body politic and corporate duly organized and existing under the laws of the State of Colorado (the “State”), as sublessee hereunder. W I T N E S S E T H : WHEREAS, the City is a municipal corporation duly organized and existing as a home rule city under its Charter and is authorized to enter into this Sublease, and the transaction contemplated hereby, and to perform all of its obligations hereunder; and WHEREAS, the County is a body politic and corporate duly organized and validly existing under the laws of the State and is authorized to enter into this Sublease, and the transaction contemplated hereby, and to perform all of its obligations hereunder; and WHEREAS, the City Council of the City and the Board of County Commissioners of the County believe that acquisition of land pursuant to Article XII of the City’s Charter (“City’s Charter”) and the County’s 1972 Open Space Enabling Resolution, as amended (“County’s Enabling Resolution”) for purposes including open space, agriculture, scenic preservation, passive recreation, and trails (“Open Space Purposes”) is a vital need for the communities of the City and the County; and WHEREAS, it has been proposed that certain real property located within the County and within Boulder County, Colorado, consisting of approximately 442 acres and which is legally described on Exhibit A, attached hereto and incorporated herein by reference (the “Property”), will be purchased by the City for $7,750,000 (the “Purchase Price”) of which $775,000 has been paid as a deposit and down-payment (the “Down Payment”) pursuant to that certain Purchase Agreement (the “Lippincott Agreement”) by and between the City, as buyer, and Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincot t, as seller (the “Seller”), to be jointly improved, operated and managed by the City and the County as open space in compliance with the City’s Charter and the County’s Enabling Resolution; and WHEREAS, for purposes of financing the acquisition of the Property, the City has determined and hereby determines that it is in the best interests of the City that the City and the Boulder Municipal Property Authority (the “Corporation”) enter into a Lease Purchase Agreement, dated the date hereof (the “Lease”), to provide for the acquisition of the Property; and WHEREAS, the Corporation will issue a carry-back non-recourse promissory note to the Seller in the principal amount of $6,975,000 (the “Note”), payable in twenty (20) annual rental payments (the “Base Rentals”) made under the Lease, and the Note shall be secured by a deed of trust (the “Deed of Trust”) for the benefit of the Seller, with interest accruing at the rate of 3.50% per annum; and Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 211 of 607 WHEREAS, the County desires to participate in the acquisition of the Property for Open Space Purposes and agrees to enter into this Sublease pursuant to which the County shall contribute 50% of the Purchase Price by paying 50% of the Down Payment and 50% of the Base Rentals (as sublease payments hereunder) payable by the City pursuant to the Lease in exchange for an undivided interest of a 50% interest in the Property as the same may be adjusted for payments actually made as set forth herein; and WHEREAS, under the terms of the Lease and this Sublease, upon full and final payment of the twenty (20) annual Base Rental payments by the City pursuant to the Lease and the full and final payment of the twenty (20) annual sublease payments by the County pursuant to the Sublease (the “Sublease Rentals”), the Corporation will convey fee title interest in the Property to the City and the City will then convey a 50% undivided ownership interest in the Property to the County; and WHEREAS, the obligation of the County to pay the Sublease Rentals hereunder shall be from year to year only; shall constitute currently budgeted expenditures of the County; shall not constitute a mandatory charge or requirement in any ensuing budget year; and shall not constitute a general obligation or other indebtedness of the County within the meaning of any constitutional, or statutory requirement concerning the creation of indebtedness, nor a mandatory payment obligation of the County in any ensuing fiscal year beyond any fiscal year during which this Sublease shall be in effect; and WHEREAS, this Sublease shall not directly or indirectly obligate the County to make any payments beyond those appropriated for any fiscal year during which this Sublease shall be in effect; NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows: ARTICLE I DEFINITIONS The following terms will have the meanings specified below unless the context clearly requires otherwise. To the extent that capitalized terms are used and not defined herein, such terms shall have the meanings given them in the Lease. “Base Rentals” has the meaning set forth in the Lease. “City” means the City of Boulder, Colorado, or any successor to its functions. “City Representative” means the City Manager or any other person at the time designated to act on behalf of the City for the purpose of performing any act under this Sublease by a written certificate furnished to the County containing the specimen signature of such person or persons and signed on behalf of the City by the Mayor. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 212 of 607 “County” means County of Jefferson, Colorado, a body politic and corporate duly organized and existing under the laws of the State, acting as Sublessee under this Sublease or any successor thereto. “County Cure” has the meaning given such term in Section 6.7. “County Cure Notice” has the meaning given such term in Section 6.7. “County Representative” means the Chair of the Board or any other person or persons designated to act on behalf of the County for the purposes of performing any act under this this Sublease by a written certificate furnished to the City containing the specimen signature of such person or persons and signed on behalf of the County by any officer of the Board. The identity(ies) of the County Representative(s) may be changed by the County from time to time by furnishing a new certificate to the City. “Event of Default” means one or more events of default as defined in Section 14.1 of this Sublease. “Event of Nonappropriation” means a nonrenewal of this Sublease by the County, determined by the failure of the County, for any reason, to budget and appropriate, specifically with respect to this Sublease, moneys sufficient to pay all Sublease Rentals, as provided in Section 6.6 of this Sublease. “Force Majeure” means, without limitation, the following: Acts of God; strikes, lockouts, or other industrial disturbances; acts of public enemies; orders of restraints of any kind of the government of the United States of America, or of the State, or any of their departments, agencies, or officials, or any civil or military authority; insurrection; riots; landslides; earthquakes; fires; storms; droughts; floods; explosions; breakage or accidents to machinery, transmission pipes, or canals; or any other cause or event not within the control of the City or the County. “Independent Counsel” means an attorney duly admitted to the practice of law before the highest court in the State and who is not an employee of the City, the Public Trustee or the County. “Lease” means the Lease Purchase Agreement, dated as of the date hereof, and any amendments or supplements hereto, including the Exhibits attached thereto. “Lease Event of Default” shall have the meaning given to the term “Event of Default” in the Lease. “Lease Event of Nonappropriation” shall have the meaning given to the term “Event of Nonappropriation” in the Lease. “Note” means the $6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Open Space Property), Series 2018. “Note Holder” means the registered owner of the Note. “Open Space Purposes” shall have the meaning set forth in the preambles of this Sublease. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 213 of 607 “Original Term” means the portion of the Sublease Term which terminates on December 31, 2018. “Permitted Encumbrances” means, as of any particular time: (i) liens for taxes and assessments not then delinquent, or liens which may remain unpaid pursuant to the provisions of Article VIII and Article IX of the Lease and Article VIII and Article IX of this Sublease; (ii) the Lease, this Sublease and the Deed of Trust; (iii) utility, access, and other easements and rights of way, restrictions and exceptions other than those set forth in (vi) below which do not, in the opinion of the Parties, interfere with or impair the Subleased Property; (iv) any financing statements filed to perfect security interests pursuant to the Lease, this Sublease or the Deed of Trust; (v) such minor defects, irregularities, encumbrances, and clouds on title as normally exist with respect to property of the general character of the Subleased Property and as do not, in the opinion of the Parties, materially impair title to the Subleased Property; and (vi) those encumbrances and exceptions to title set forth in Exhibit C to the Lease and this Sublease. “Property” means the land to be acquired for Open Space Purposes described in Exhibit A hereto as the same is further described in the Lease and which includes the Subleased Property. “Purchase Option Price” means, for the purpose of Section 12.1 hereof, the amount payable, at the option of the County, for the purpose of terminating this Sublease and purchasing the Subleased Property which shall arise only in the event that the City exercises its rights under the terms of the Lease to terminate the Lease and pay the balance of the amounts due under the Note. “Renewal Term” means any optional Renewal Term of the Sublease Term as provided in Article IV of this Sublease. “Revenues” means (i) the Sublease Rentals; and (ii) all other revenues derived from this Sublease, if any. “Seller” means Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott. “State” means the State of Colorado. “Sublease” means this Sublease, and any amendments or supplements hereto, including the Exhibits attached hereto. “Sublease Rentals” means the payments payable by the County pursuant to Section 6.2 of this Sublease and Exhibit B hereto, during the Original Term and any Renewal Term, which constitute the payments payable by the County for and in consideration of the right to use the Subleased Property for Open Space Purposes during such Original Term or Renewal Term, and which are each one-half the amount of each Base Rental payment. “Sublease Term” means the Original Term and any Renewal Terms as to which the County may exercise its option to renew this Sublease, as further provided under Section 4.1 of this Sublease; subject to the terms and provisions of Sections 4.2, 6.1 and 6.6 of this Sublease. “Sublease Term” refers to the time during which the County is the Sublessee under this Sublease; Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 214 of 607 provided, however, certain provisions of this Sublease survive the termination of the Sublease Term, as further provided in Section 4.2 of this Sublease. “Subleased Property” means an undivided nonexclusive 50% interest in the Property. ARTICLE II REPRESENTATIONS, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants and Warranties of the County. The County represents, covenants, and warrants for the benefit of the City as follows: (a) The County is a body politic and corporate of the State duly organized and validly existing under the laws of the State. The County is authorized by law to enter into the transactions contemplated by this Sublease and to carry out its obligations hereunder. The County has duly authorized and approved the execution and delivery of this Sublease and other documents related to this transaction. (b) During the Sublease Term, the Subleased Property will at all times be used by the County for Open Space Purposes and any other lawful governmental functions related thereto in concert with the City’s use of the Property for Open Space Purposes as allowed under the terms of the Lease. The Parties agree to enter into a joint management arrangement for the joint and cooperative operation and maintenance of the Property. (c) Neither the execution and delivery hereof, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby conflicts with or results in a breach of the terms, conditions, or provisions of any restriction, or any agreement, or instruments to which the County is now a party or by which the County is bound, or constitutes a default under any of the foregoing, or, except as specifically provided in this Sublease, results in the creation or imposition of any lien or encumbrance whatsoever upon any of the property or assets of the County. (d) The County will not pledge or assign the Revenues or any of its other rights under this Sublease except that the County acknowledges and consents to the City’s assignment of the Sublease Rentals payable by the County hereunder to secure the Note, and the County will not mortgage or encumber the Subleased Property except for Permitted Encumbrances. (e) There is no litigation or proceeding pending or, to the knowledge of the County, threatened against the County or any other person affecting the right of the County to execute or deliver this Sublease, or to comply with its obligations under this Sublease. (f) This Sublease constitutes a legal, valid, and binding obligation of the County enforceable in accordance with its terms. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 215 of 607 Section 2.2. Representations, Covenants and Warranties of City. The City represents, covenants, and warrants for the benefit of the County as follows: (a) The City is a municipal corporation duly organized and existing as a home rule city under its Charter. The City is authorized by law to enter into the transactions contemplated by this Sublease and to carry out its obligations hereunder. The City has duly authorized and approved the execution and delivery of this Sublease and other documents related to this transaction. (b) The City will not pledge or assign the Revenues or any of its other rights under this Sublease except to secure the Note, and the City will not mortgage or encumber the Subleased Property except for Permitted Encumbrances. (c) Neither the execution and delivery hereof, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby conflicts with or results in a breach of the terms, conditions, and provisions of any restriction, or any agreement, or instrument to which the City is now a party or by which the City is bound, or constitutes a default under any of the foregoing and will not conflict with or constitute a violation of any constitutional or statutory provision or order, rule, regulation, decree or ordinance of any court, government, or governmental authority having jurisdiction over the City or its property, and which conflict or violation will have a material adverse effect on the City, the Subleased Property, or its operation. (d) The City acknowledges and recognizes that this Sublease will be terminated at the end of the Original Term or any Renewal Term in the event that sufficient funds are not budgeted and appropriated by the County, specifically with respect to this Sublease, to continue paying all Sublease Rentals during the next occurring Renewal Term. The acts of budgeting and appropriating funds are legislative acts and, as such, are solely within the discretion of the County. (e) There is no litigation or proceeding pending or, to the knowledge of the City, threatened against the City or any other person affecting the right of the City to execute or deliver this Sublease, or to comply with its obligations under this Sublease. (f) This Sublease constitutes a legal, valid, and binding obligation of the City enforceable in accordance with its terms. ARTICLE III DEMISING CLAUSE The City demises and subleases the Subleased Property to the County, and the County subleases the Subleased Property from the City, in accordance with the provisions of this Sublease, subject only to Permitted Encumbrances, to have and to hold for the Original Term and the Renewal Terms, if any. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 216 of 607 ARTICLE IV SUBLEASE TERM Section 4.1. Commencement of Sublease Term; Renewals. The Sublease Term shall commence as of __________, 2018. The Original Term shall terminate on December 31, 2018. The Sublease Term may be continued, solely at the option of the County, to the first Renewal Term for an additional year and for each of the additional Renewal Terms thereafter, each of one year in duration, except that the final Renewal Term, if any, shall commence on January 1, 2038, and shall terminate on __________, 2038. (a) In the event that the County shall determine, for any reason, not to renew this Sublease, the County shall give written notice to such effect to the City not less than 30 days prior to the end of the then current Original or Renewal Term; provided, however, that a failure to give such notice shall not constitute an Event of Default, nor prevent the County from declining to renew this Sublease, nor result in any liability on the part of the County. (b) The option of the County to renew or not to renew this Sublease shall be conclusively determined by whether or not the Board of County Commissioners has, on or before the December 31, immediately preceding the commencement of any Renewal Term, budgeted and appropriated, specifically with respect to this Sublease, moneys sufficient to pay all the Sublease Rentals for such ensuing Renewal Term, all as further provided in Section 6.6 of this Sublease. (c) It is the intention of the parties hereto that the decision to renew or not to renew this Sublease shall be made solely by the Board of County Commissioners and not by any other County officer. The County shall in any event, whether or not this Sublease is to be renewed, furnish the City with copies of its annual budget promptly after the budget is adopted. (d) The terms and conditions during any Renewal Term shall be the same as the terms and conditions during the Original Term, except that the Sublease Rentals shall be as provided in Exhibit B to this Sublease. Section 4.2. Termination of Sublease Term. The Sublease Term shall terminate upon the earliest of any of the following events: (a) the expiration of the Original Term or any Renewal Term during which there occurs an Event of Nonappropriation (which is not thereafter waived) pursuant to Article VI of this Sublease; (b) an Event of Default and termination of the Sublease Term under Article XIV of this Sublease; or (c) _______________, 2038, which date constitutes the last day of the final Renewal Term of this Sublease, or such later date as all Sublease Rentals required hereunder shall be paid. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 217 of 607 Termination of the Sublease Term shall terminate all obligations of the County under this Sublease and shall terminate the rights of the County to possession of the Subleased Property under this Sublease (except to the extent of any conveyance pursuant to Article XII of this Sublease). ARTICLE V ENJOYMENT OF SUBLEASED PROPERTY The City hereby covenants that the County shall during the Sublease Term peaceably and quietly have and hold and enjoy, on a nonexclusive basis with the City, the Subleased Property without suit, trouble, or hindrance from the City, except as expressly required or permitted by this Sublease. The City shall not interfere with the quiet use and enjoyment of the Subleased Property by the County, on a nonexclusive basis with the City, during the Sublease Term, so long as the Sublease Term shall be in effect. The City shall, at the request of the County and at the cost of the County, join and cooperate fully in any legal action in which the County asserts its right to such possession and enjoyment, or which involves the imposition of any taxes or other governmental charges on or in connection with the Subleased Property. In addition, the County may, at its own expense, join in any legal action affecting its possession and enjoyment of the Subleased Property and shall be joined (to the extent legally possible and at the expense of the County) in any action affecting its liabilities hereunder. Notwithstanding the foregoing, the Parties agree to enter into a joint management arrangement for the joint and cooperative operation and maintenance of the Property. ARTICLE VI PAYMENTS BY THE COUNTY Section 6.1. Payments To Constitute Currently Budgeted Expenditures of the County. The County and the City acknowledge and agree that the Sublease Rentals hereunder shall constitute currently budgeted expenditures of the County. The obligations of the County under this Sublease shall be from year to year only (as further provided in Sections 4.1, 4.2, 6.2 and 6.6 hereof) and shall not constitute a mandatory payment obligation of the County in any fiscal year beyond a fiscal year during which this Sublease shall be in effect. No provision of this Sublease shall be construed or interpreted as creati ng a general obligation or other indebtedness of the County within the meaning of any constitutional, statutory, or home rule debt limitation. No provision of this Sublease shall be construed or interpreted as creating a delegation of governmental powers nor as a donation by or a lending of the credit of the County within the meaning of Section 1 or 2 of Article XI of the Constitution of the State. This Sublease shall not directly or indirectly obligate the County to make any payments beyond those appropriated for any fiscal year in which this Sublease shall be in effect. No provision of this Sublease shall be construed to pledge or to create a lien on any class or source of County moneys, nor shall any provision of this Sublease restrict the future issuance of any County bonds or obligations payable from any class or source of County moneys. Section 6.2. Sublease Rentals. The County shall pay Sublease Rentals directly to the City during the Original Term and any Renewal Terms, on the due dates set forth in Exhibit B to Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 218 of 607 this Sublease. The Sublease Rentals during the Original Term and any Renewal Terms shall be in the amounts in the “Total Sublease Rentals” columns, as set forth in Exhibit B to this Sublease. The County’s payment of 50% of the Down Payment and the initial Sublease Rentals paid by the County on the date hereof, shall be in consideration for the use of the Subleased Property by the County from the time of delivery of this Sublease until December 31, 2018 on the terms set forth herein. Thereafter, Sublease Rentals due on the dates set forth in Exhibit B shall be in consideration for the use of the Subleased Property by the County from the immediately preceding January 1 to the immediately following December 31 on the terms set forth herein. Section 6.3. Disposition of Sublease Rentals. Upon receipt by the City of each payment of Sublease Rentals, the City shall apply the amount of such Sublease Rentals to payments due under the Lease for further payment of the Note. Section 6.4. Manner of Payment. The Sublease Rentals shall be paid in lawful moneys of the United States of America to the City at its principal office or by wire transfer pursuant to wiring instructions provided by the City. The obligation of the County to pay the Sublease Rentals required under this Article and other sections hereof, during the Sublease Term, shall be absolute and unconditional, and payment of the Sublease Rentals shall not be abated through accident or unforeseen circumstances. Notwithstanding any dispute between the City and the County, the County shall, during the Sublease Term, make all payments of Sublease Rentals when due and shall not withhold any Sublease Rentals pending final resolution of such dispute, nor shall the County assert any right of set-off or counterclaim against its obligation to make such payments required hereunder. No action or inaction on the part of the City shall affect the County’s obligation to pay the Sublease Rentals during the Sublease Term. Section 6.5. Expression of the County’s Intention To Acquire the Subleased Property: Determinations As to Fair Market Value and Fair Purchase Price. The County hereby declares its current intention to acquire the Subleased Property for Open Space Purposes. It is hereby declared to be the present intention and expectation of the County that this Sublease will be renewed annually until title to the Subleased Property is acquired by the City pursuant to the Lease and, if the City intends to exercise the purchase option in the Lease, the County shall have the right to further acquire the Subleased Property pursuant to this Sublease; but this declaration shall not be construed as contractually obligating or otherwise binding the County. The County and the City hereby agree and determine that based upon recent appraisals of the Subleased Property, the price to be paid for the Subleased Property represents the fair market value of the Subleased Property; that the Sublease Rentals hereunder during the Original Term and any Renewal Term represent the fair value of the use of the Subleased Property; and that the Purchase Option Price represents the fair purchase price of the Subleased Property. The County hereby determines that the Sublease Rentals do not exceed a reasonable amount so as to place the County under an economic or practical compulsion to renew this Sublease or to exercise its option to purchase the Subleased Property hereunder. In making such determinations, the County and the City have given consideration to the current appraised value of the Subleased Property, the uses and purposes for which the Subleased Property will be employed by the County, the benefit to the County by reason of the acquisition of the Subleased Property, and the use and occupancy of the Subleased Property pursuant to the terms and provisions of this Sublease, the option of the County to purchase the Subleased Property, and the expected eventual vesting of title to the Subleased Property in the County. The County hereby determines and declares that the acquisition of the Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 219 of 607 Subleased Property and the leasing of the Subleased Property pursuant to this Sublease will result in a Subleased Property of comparable quality and meeting the same requirements and standards as would be necessary if the acquisition of the Subleased Property were performed by the County other than pursuant to this Sublease. The County hereby determines and declares that the period during which the County has an option to purchase the Subleased Property (i.e., the maximum term of this Sublease, including all Renewal Terms) does not exceed the useful life of the Subleased Property. Section 6.6. Nonappropriation by the County. In the event that the Board of County Commissioners does not budget and appropriate, specifically with respect to this Sublease, on or before December 31 of each year, moneys sufficient to pay all Sublease Rentals coming due for the next ensuing Renewal Term, an Event of Nonappropriation shall be deemed to have occurred. If an Event of Nonappropriation occurs, the County shall immediately give notice to the City and shall not be obligated to make payment of the Sublease Rentals or any other payments provided for herein which accrue after the last day of the Original or Renewal Term during which such Event of Nonappropriation occurs; provided, however, that, subject to the limitations of Section 14.3 hereof, the County shall continue to be liable for Sublease Rentals allocable to any period during which the County shall continue to occupy the Subleased Property. The County shall in all events vacate the Subleased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs. Section 6.7. Right to Cure Events Under the Lease. Promptly after its adoption, the City shall provide to the County the City’s annual approval budget confirming that the City has appropriate funds for the next ensuing annual Base Rental payments. If a Lease Event of Nonappropriation or a Lease Event of Default shall have occurred under the Lease or event which, with the giving of notice or the passage of time or both would constitute a Lease Event of Default under the Lease, the City shall immediately give notice to the County (the “County Cure Notice”) whereupon the County shall have the right (i) in the event of a Lease Event of Nonappropriation, the County shall have a period of thirty (30) days following receipt of the County Cure Notice to make the payment of the Base Rentals for the applicable Renewal Term, in which event the Lease Event of Nonappropriation shall be deemed cured by the County or (ii) in the event of a Lease Event of Default, the County shall have a period of thirty (30) days following receipt of the County Cure Notice to initiate a cure of the events comprising the Lease Event of Default and to the extent that such cure is timely initiated and diligently pursued by the County as required pursuant to Section 13.5 of the Lease, then the Lease Event of Default shall be deemed cured by the County. Pursuant to Section 13.5 of the Lease, the Lessor agrees to accept a cure performance by the County (a “County Cure”) to the same extent as the City’s anticipated performance under the Lease. In the event of a County Cure, then the Lease and this Sublease shall continue for so long as either the City or the County (by virtue of a County Cure), pays the Base Rentals due under the Lease. Section 6.8. Final Apportionment. If (i) the County makes any Base Rental payments in connection with a County Cure under the Lease on behalf of the City and continues to timely pay the Sublease Rentals such that 100% of the Base Rental Payments are made under the Lease by the end of the Lease Term (as such term is defined in the Lease), or (ii) if the City pays the full Base Rentals but the County fails to pay all of the Sublease Rentals due from the County hereunder, Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 220 of 607 then, at the end of the Term of the Lease and payment in full of the Note, then each Party acknowledges and agrees that the each of them shall receive a proportionate undivided ownership interest in the Property based on the total proportionate share of total Base Rentals made by each Party. If at any point during the Lease Term, the City fails to make its Base Rental payments and the County does not elect to cure the same by effectuating a County Cure, then the County acknowledges that the Note shall be in default and the Property may be foreclosed to satisfy the amounts remaining due on the Note, whereupon this Sublease shall be terminated at the conclusion of such foreclosure. This Sublease is subordinate to the Deed of Trust and all sums due under the Note and the holder of the Note has no obligation to attorn to the County even if the County continues to pay the Sublease Rentals due under the Sublease. If the Lease is terminated and there is no County Cure preventing such termination, then this Sublease shall terminate concurrently with the termination of the Lease. ARTICLE VII ACQUISITION OF THE PROPERTY The City shall enter into the Lease on the date that the Corporation acquires fee title to the Property and shall concurrently enter into this Sublease for the sublease of the Subleased Property to the County. Fee title to the Subleased Property shall be held by the Corporation, subject only to the Lease and this Sublease, the Permitted Encumbrances and as otherwise provided in Article V hereof. ARTICLE VIII TITLE TO THE SUBLEASED PROPERTY LIMITATIONS ON ENCUMBRANCES Section 8.1. Title to the Subleased Property. Title to the Subleased Property and any and all permanent additions and modifications to or replacements of any portion of the Subleased Property shall be held in the name of the Corporation, subject only to Permitted Encumbrances and as otherwise provided in Article V hereof, until foreclosed on or conveyed as provided in Article XII of this Sublease, notwithstanding: (i) the occurrence of an Event of Nonappropriation as provided in Section 6.6 of this Sublease or one or more Events of Default as defined in Section 14.1 of this Sublease; (ii) the occurrence of any event of condemnation as provided in Article X of this Sublease; or (iii) the violation by the County or the City of any provision of this Sublease. The County shall have no right, title, or interest in the Subleased Property or any additions and modifications to or replacements of any portion of the Subleased Property, except as expressly set forth in this Sublease. Section 8.2. No Encumbrance, Mortgage, or Pledge of Subleased Property. Neither the City nor the County shall directly or indirectly create, incur, assume, allow or suffer to exist any mortgage, pledge, lien, charge, encumbrance, or claim on or with respect to the Subleased Property, except Permitted Encumbrances. The County shall promptly, at its own expense, take such action as may be necessary to duly discharge any such mortgage, pledge, lien, charge, encumbrance, or claim not excepted above which it shall have created, incurred, or suffered to exist. The City shall promptly, at its own expense, take such action as may be necessary to duly Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 221 of 607 discharge any such mortgage, pledge, lien, charge, encumbrance, or claim not excepted above which it shall have created or incurred or suffered to exist. ARTICLE IX MAINTENANCE, TAXES, INSURANCE, AND OTHER CHARGES Section 9.1. Use and Maintenance of the Subleased Property. The County agrees that, at all times during the Sublease Term, the County will use, maintain, preserve, and keep the Subleased Property or cause the Subleased Property to be used, maintained, preserved, and kept, with the appurtenances and every part and parcel thereof, in good repair, working order, and condition for Open Space Purposes in a joint manner with the City as may be required of the City under the terms of the Lease. The Parties agree to enter into a joint management arrangement for the joint and cooperative operation and maintenance of the Property. The Parties acknowledge and agree that their respective rights to use and enjoy the Subleased Property and the obligations for maintenance and operations thereof are undivided and apply equally to the whole of the Property leased by the Corporation to the City and the 50% interest therein comprising the Subleased Property subleased to the County hereunder. Accordingly, until such joint management agreement is executed setting forth the specific agreements with respect to the joint use and operation of the Property for Open Space Purposes, the Parties shall share equally in the rights, benefits and operational costs, expenses and liabilities related to their respective lease rights in the Property and their joint use and operation thereof, subject in each instance of a payment obligation under this Article IX, to sufficient funds being budgeted and appropriated therefor by the County and/or the City, as applicable. Section 9.2. Taxes, Other Governmental Charges, and Utility Charges. In the event that the Subleased Property or any portion thereof shall, for any reason, be deemed subject to taxation, assessments, or charges lawfully made by any governmental body, the County shall, during the Sublease Term, pay the amount of all such taxes, assessments, and governmental charges allocable thereto and the City shall pay the commensurate portion applicable to the remainder of the interest in the Property. With respect to special assessments or other governmental charges which may be lawfully paid in installments over a period of years, the County shall be obligated to provide only for such installments as are required to be paid during the Original or any Renewal Term as applicable to the Subleased Property. The County shall not allow any liens for taxes, assessments, or governmental charges to exist with respect to the Subleased Property or any portion thereof (including, without limitation, any taxes levied upon the Subleased Property or any portion thereof which, if not paid, will become a charge on the rentals and receipts from the Subleased Property or any portion thereof or any interest therein, including the interest of the City in the remainder of the Property), or the rentals and revenues derived therefrom or hereunder. The County may, at the expense and in the name of the County, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments, utility or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the City shall notify the County that, in the opinion of Independent Counsel, by nonpayment of any such items, the security afforded pursuant to the Deed of Trust of the City will be materially endangered or the Subleased Property or any portion Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 222 of 607 thereof will be subject to loss or forfeiture, or the City will be subject to liability, in which event such taxes, assessments, utility or other charges shall be paid forthwith (provided, however, that such payment shall not constitute a waiver of the right to continue to contest such taxes, assessments, utility or other charges). Section 9.3. Provisions Regarding Casualty, Public Liability, and Property Damage Insurance. Each of the County and the City shall cause casualty and property damage insurance to be carried and maintained with respect to their respective leasehold interests in and use of the Property. The County shall provide evidence of insurance with respect to the Subleased Property in an amount deemed necessary and reasonable by the County. The Parties agree to enter into a joint management arrangement for the joint and cooperative operation and maintenance of the Property which may include provisions for the placement of insurance over the Property or any portion thereof which shall take precedence over the insurance requirements of this Sublease. ARTICLE X CONDEMNATION If the Property or any portion thereof shall be taken by the exercise of the power of eminent domain, the County shall be obligated to continue to pay Sublease Rentals hereunder for the then current term of this Sublease (i.e., the Original Term or Renewal Term, as the case may be) as applicable to the Leased Portion of the Property so condemned. Any condemnation award shall be applied first to any Base Rentals when due, and any balance shall be paid to the City and the County as their interests may appear under the Lease and the Sublease or otherwise to the City to the extent that this Sublease has been terminated. ARTICLE XI DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 11.1. Disclaimer of Warranties. THE CITY MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OR FITNESS FOR USE OF THE SUBLEASED PROPERTY, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE SUBLEASED PROPERTY. Section 11.2. Further Assurances and Corrective Instruments. The City and the County agree that they will, from time to time, execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Subleased Property hereby leased or intended so to be, or for otherwise carrying out the intention hereof. Section 11.3. Lessor and County Representatives. Whenever under the provisions hereof the approval of the City or the County is required to take some action at the request of the other, unless otherwise provided, such approval or such request shall be given for the City by the City Representative, and for the County by the County Representative, and the City and the County shall be authorized to act on any such approval or request. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 223 of 607 Section 11.4. Compliance With Requirements. During the Sublease Term, the County and the City shall observe and comply promptly with all current and future orders of all courts having jurisdiction over the Subleased Property or any portion thereof, and all current and future requirements of all insurance companies writing policies covering the Subleased Property or any portion thereof. Section 11.5. County Acknowledgment of Note. The County approves, acknowledges, directs, and agrees to the issuance and sale of the Note. Section 11.6. Tax Covenants. The County covenants that it shall at all times do and perform all acts and things permitted by law and which are necessary or desirable in order to assure that interest paid by the Authority on the Note shall, for purposes of federal income taxation, n ot be includable in gross income under the Internal Revenue Code of 1986, as amended (the “Code”), or any other valid provision of law. In particular, but without limitation, the County further represents, warrants, and covenants that the Subleased Property will not be used in a manner which will cause the Note to be considered a “private activity bond” within the meaning of the Code. ARTICLE XII CONVEYANCE OF THE SUBLEASED PROPERTY Section 12.1. Conveyance of the Subleased Property. Subject at all times to the City’s rights to purchase the Property under the Lease, the County is hereby granted the option in the event that the City exercises its purchaser option under the Lease, to concurrently terminate the Sublease Term and to purchase the Subleased Property upon payment by the City of the then applicable Purchase Option Price; provided, however, that the Subleased Property will not be conveyed to the County until the conditions in Section 12.1(a) hereof have been satisfied. The City shall transfer and convey to the County the Subleased Property in the manner provided for in Section 12.2 of this Sublease; provided, however, that prior to such transfer and conveyance, either: (a) the County shall have paid the then applicable Purchase Option Price under this Sublease, all of the Base Rentals shall have been paid for the original term and all renewal terms under the Lease and the Note shall have been paid in full; or (b) the County shall have paid all Sublease Rentals set forth in Exhibit B hereto, for the Original Term and all Renewal Terms, all of the Base Rentals shall have been paid for the original term and all renewal terms under the Lease and the Note shall have been paid in full. Any conveyance of the Subleased Property shall be subject to Sections 6.6, 6.7 and 6.8 hereof such that the resulting allocable percentage of ownership being conveyed to each of the Parties accurately reflects the total payments made by each Party. Section 12.2. Manner of Conveyance. At the closing of any purchase or other conveyance of the Subleased Property pursuant to Section 12.1 of this Sublease, the City shall execute and deliver to the County all necessary documents assigning, transferring, and conveying an undivided interest in good and marketable title to the Property in the percentage of the Subleased Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 224 of 607 Property or such other proportionate percentage as calculated pursuant to Section 6.8, subject to the following: (i) Permitted Encumbrances, other than the Lease, this Sublease and the Deed of Trust and any Financing Statements (as such shall be released upon the payment in full of the Note); (ii) all liens, encumbrances, and restrictions created or suffered to exist by the City as required or permitted by this Sublease, or the Deed of Trust, or arising as a result of any action taken, or omitted to be taken, by the City as required or permitted by this Sublease or the Deed of Trust; (iii) any lien or encumbrance created by action of the City; and (iv) those liens and encumbrances (if any) to which title to the Subleased Property was subject when conveyed to the City. ARTICLE XIII PLEDGE, SUBLEASING, MORTGAGING, AND COVENANTS Section 13.1. Pledge. The parties hereto agree that the City shall be entitled to pledge this Sublease and the Sublease Rentals and remedies hereunder as security for the Note. Section 13.2. Assignment and Subleasing. This Sublease may not be assigned by the County or the City for any reason without the prior written consent of the other Party acting in its sole discretion. Section 13.3. No Negligence. The County hereby covenants for the benefit of the City not to act negligently in connection with the Subleased Property. The City hereby covenants for the benefit of the County not to act negligently in connection with the Subleased Property. Section 13.4. Restriction on Mortgage or Transfer of Subleased Property. The County and the City agree that, except for: (i) the pledge by the City of this Sublease as security for the Note and mortgaging of the Subleased Property by the Corporation pursuant to the Deed of Trust, which are hereby authorized and acknowledged; (ii) any exercise by the Public Trustee under such Deed of Trust or the City of the remedies afforded by this Sublease; and (iii) any conveyance to the County pursuant to Article XII of this Sublease; neither the City nor the County will mortgage, assign, transfer, or convey its interest in the Subleased Property or any portion thereof during the Sublease Term. ARTICLE XIV EVENTS OF DEFAULT AND REMEDIES Section 14.1. Events of Default by County Defined. Any one of the following shall be “Events of Default” by the County under this Sublease: (a) failure by the County to pay any Sublease Rentals during the Sublease Term for a period of 25 days after written notice specifying such failure and requesting that it be remedied, shall be received by the County from the City; or (b) failure by the County to vacate the Subleased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs; or Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 225 of 607 (c) failure by the County to observe and perform any covenant, condition, or agreement on its part to be observed or performed, other than as referred to in (a) or (b), for a period of 45 days after written notice, specifying such failure and requesting that it be remedied, shall be given to the County by the City, unless the City shall agree in writing to an extension of such time prior to its expiration; provided, however, that if the failure stated in the notice cannot be corrected within the applicable period, the City shall not withhold its consent to an extension of such time, if corrective action shall be instituted by the County within the applicable period and diligently pursued until the default is corrected. The foregoing provisions of this Section are subject to the following limitations: (i) the County shall be obligated to pay the Sublease Rentals only during the Sublease Term, except as otherwise expressly provided in this Sublease; and (ii) if, by reason of Force Majeure, the County shall be unable, in whole or in part, to carry out any agreement on its part herein contained, other than the obligations on the part of the County contained in Article VI of this Sublease, the County shall not be deemed in default during the continuance of such inability. The County agrees, however, to remedy, as promptly as legally and reasonably possible, the cause or causes preventing the County from carrying out its agreement; provided that the settlement of strikes, lockouts, and other industrial disturbances shall be entirely within the discretion of the County. Section 14.2. Remedies on Default. Whenever any Event of Default referred to in Section 14.1 of this Sublease shall have happened and be continuing, the City may terminate the Sublease Term and may give notice to the County to vacate the Subleased Property within 15 days from the date of such Event of Default. After the occurrence of an Event of Default, the City shall be entitled to take one or any combination of the following additional remedial steps: (a) Terminate this Sublease; (b) Recover from the County the portion of Sublease Rentals which would otherwise have been payable hereunder, allocable to any period in which the County continues to occupy the Subleased Property; and/or (c) Not terminate this Sublease and take whatever action at law or in equity may appear necessary or desirable to enforce its right in and to the Subleased Property under this Sublease; provided that no Sublease Rentals shall be due or collectible for any year in which both (i) an Event of Nonappropriation occurs and, (ii) the County is not in possession of any portion of the Subleased Premises. Section 14.3. Limitations on Remedies. A judgment requiring a payment of money may be entered against the County by reason of an Event of Default only as to the County’s liabilities described in paragraph (b) of Section 14.2 of this Sublease. A judgment requiring a payment of money may be entered against the County by reason of an Event of Nonappropriation only to the extent that the County fails to vacate the Subleased Property as required by Section 6.6 of this Sublease, and only as to the liabilities described in paragraph (b)(i) of Section 14.2 of this Sublease. Notwithstanding paragraph (b)(ii) of Section 14.2 of this Sublease, any Event of Default consisting of failure by the County to vacate the Subleased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs shall not result in any liability Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 226 of 607 for Sublease Rentals allocable to any period other than the period in which the County continues to occupy the Subleased Property. Section 14.4. No Remedy Exclusive. Subject to Section 14.3 hereof, no remedy herein conferred upon or reserved to the City is intended to be exclusive, and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, and the same may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City to exercise any remedy reserved in this Article, it shall not be necessary to give any notice, other than such notice as may be required in this Article. Section 14.5. Waivers. In the event that any agreement contained herein should be breached by either Party and thereafter waived by the other Party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. Section 14.6. Agreement To Pay Attorneys’ Fees and Expenses. In the event that either Party hereto shall default under any of the provisions hereof and the nondefaulting Party shall employ attorneys or incur other expenses for the collection of Sublease Rentals, or the enforcement of performance or observance of any obligation or agreement on the part of the defaulting Party herein contained, the defaulting Party agrees that it shall pay on demand therefor to the nondefaulting Party the fees of such attorneys and such other expenses so incurred by the nondefaulting Party, to the extent that such attorneys’ fees and expenses may be determined to be reasonable by a court of competent jurisdiction. Section 14.7. Waiver of Appraisement, Valuation, Stay, Extension, and Redemption Laws. The City and the County agree, to the extent permitted by law, that in th e case of a termination of the Sublease Term by reason of an Event of Nonappropriation or an Event of Default, neither the City, nor the County, nor any one claiming through or under either of them shall or will set up claim or seek to take advantage of an y appraisement, valuation, stay, extension, or redemption laws now or hereafter in force in order to prevent or hinder the enforcement of the Indenture; and the City and the County, for themselves and all who may at any time claim through or under either of them, each hereby waives, to the full extent that it may lawfully do so, the benefit of all such laws. Section 14.8. Default by the City; Remedies. In the event that the City fails to comply with or perform any of its covenants herein made for the benefit of the C ounty hereunder, then the County shall give the City written notice thereof specifying the alleged failure, whereupon the City shall have a period of 45 days after the date of such notice to cure the failure; provided, however, if the failure cannot be cured or otherwise corrected within such 45 days, then the cure period shall be extended so long as the cure by the City is initiated within said initial 45-day period and is diligently pursued by the City until the default is corrected. If the City fails to cure said default then the County shall have the right to (i) terminate this Sublease at the end of the applicable Renewal Term; or (ii) not terminate this Sublease and enforce this Sublease and the defaulted terms thereof against the City in a court of law. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 227 of 607 Section 14.9. Limitation of Damages. In no event shall either Party be liable for any indirect, special, consequential or exemplary damages hereunder. Any damages incurred by a third party in connection with such third party’s use of the Subleased Property shall, to the extent imposed by a court of competent jurisdiction or otherwise agreed, be shared equally by the Parties unless such damage was (i) caused by one Party or (ii) insured against under any insurance policy maintained by the Party which caused the damage. ARTICLE XV MISCELLANEOUS Section 15.1. Notices. All notices, certificates, or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by certified or registered mail, postage prepaid, as follows: If to the City: Municipal Building, 1777 Broadway, Boulder, Colorado 80302, Attention: City Attorney; and if to the County: Director, Jefferson County Open Space, 700 Jefferson County Parkway, Golden, Colorado 80401. The City and the County may, by written notice, designate any further or different addresses to which subsequent notices, certificates, or other communications shall be sent. Section 15.2. Binding Effect. This Sublease shall inure to the benefit of and shall be binding upon the City and the County and their respective successors and assigns, subject, however, to the limitations contained in Article XIII of this Sublease. Section 15.3. Amendments, Changes and Modifications. Except as otherwise provided in this Sublease, subsequent to the delivery of the Note and prior to their payment i n full, this Sublease may not be effectively amended, changed, modified, or altered without the written consent of the Note Holder. Section 15.4. Net Lease. This Sublease shall be deemed and construed to be a “net lease”, and the County shall pay absolutely net durin g the Sublease Term, the Sublease Rentals, free of any deductions, and without abatement, deduction, or setoff including, without limitation, any setoff for costs of operations and maintenance. Section 15.5. Payments Due on Holidays. If the date for making any payment, or the last day for performance of any act, or the exercising of any right, as provided in this Sublease, shall be a legal holiday or a day on which banking institutions in the County in which the principal office of the City is located are authorized by law to remain closed, such payment may be made, or act performed, or right exercised on the next succeeding day that is not a legal holiday or a day on which such banking institutions are not authorized by law to remain closed with the same force and effect as if done on the nominal date provided in this Sublease. Section 15.6. Severability. In the event that any provision of this Sublease, other than the requirement of the County to pay Sublease Rentals and the requirement of the City to provide quiet enjoyment of the Subleased Property and to convey the Subleased Property to the County under the conditions set forth in Article XII of this Sublease, shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 228 of 607 Section 15.7. Execution in Counterparts. This Sublease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 15.8. Applicable Law. This Sublease shall be governed by and construed in accordance with the laws of the State. Section 15.9. Captions. The captions of headings herein are for convenience only and in no way define, limit, or describe the scope or intent of any provisions or sections of the Lease. [Remainder of page intentionally left blank] Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 229 of 607 IN WITNESS WHEREOF, the Parties have executed this Sublease as of the date set forth above. COUNTY OF JEFFERSON, STATE OF COLORADO, a body politic and corporate By Chair STATE OF COLORADO ) ) ss. COUNTY OF JEFFERSON ) The foregoing instrument was acknowledged before me this _____ day of __________, 20___ by ____________________, Chair of the Board of County Commissioners of the County of Jefferson, State of Colorado. [SEAL] Notary Public, State of Colorado APPROVED AS TO FORM: Steven L. Snyder Senior Assistant County Attorney CITY OF BOULDER, a Colorado home rule City By Jane S. Brautigam, City Manager Attest: City Clerk Approved as to form: City Attorney Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 230 of 607 EXHIBIT A LEGAL DESCRIPTION Parcel 1: The Southeast ¼ of the Southeast ¼ of Section 36, Township 1 South, Range 71 West of the 6th P.M., County of Boulder, State of Colorado. Parcel 2: That part of the Northeast ¼ lying West of and adjoining the West line of the Denver & Salt Lake Rail Road right-of-way as described in Book 126 at Page 113, Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado. Parcel 3: The Northeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except so much thereof as lies West of the East line of railroad right of way as shown by deed recorded in Book 126 at Page 113, Jefferson County, Colorado records. Parcel 4: The South ½ of the South ½ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado and the Northwest ¼ of the Southwest ¼ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado; and The Southeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except that portion of said Section 1 conveyed to The Denver Northwestern and Pacific Railway Company by the Quit Claim Deed recorded January 19, 1903 in Book 121 at Page 180, of the Jefferson County, Colorado records, and Except those portions of said Sections 1 and 6 conveyed to Katherine T. O’Connor by the Warranty Deed recorded October 26, 193 in Book 347 at Page 159, of the Jefferson County, Colorado records. Parcel 5: A non-exclusive easement for ingress and egress purposes over and across the Northwest ¼ of Section 7, Township 2 South, Range 70 West of the 6th P.M., Jefferson County, Colorado, said easement being over an existing access road and being 20 feet on each side of the following described centerline: Beginning at a point on the North line of said Northwest ¼ of Section 7, from which point the Northwest corner of Section 7 bears North 88°46’26” West, a distance of 784.09 feet; thence Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 231 of 607 along said centerline the following courses and distances: South 59°43’29” East, a distance of 5.41 feet to a point of curve; thence along a curve to the left having a radius of 143.37 feet, a central angle of 19°47’00”, an arc distance of 49.50 feet to a point of tangency; thence South 79°30’29” East, a distance of 155.12 feet to a point of curve; thence along a curve to the right having a radius of 316.01 feet, a central angle of 10°50’45”, an arc distance of 59.82 feet to a point of tangency; thence South 68°39’43” East, a distance of 111.37 feet to a point of curve; thence along a curve to the right having a radius of 227.37 feet, a central angle of 19°57’19”, an arc distance of 79.19 feet to a point of tangency; thence South 48°42’24” East, a distance of 238.34 feet to a point of curve; thence along a curve to the left having a radius of 401.68 feet, a central angle of 16°59’28”, an arc distance of 119.12 feet to a point of tangency; thence South 65°41’53” East, a distance of 240.47 feet to a point of curve; thence along a curve to the right having a radius of 102.46 feet, a central angle of 60°42’17”, an arc distance of 108.56 feet to a point of tangency, said point being on the existing centerline of a road deeded to Jefferson County on August 6, 1935, by deed recorded in Book 374 at Page 140, and from which point the Northwest corner of Section 7 bears North 72°14’59” West, a distance of 1862.34 feet. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not limited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 232 of 607 EXHIBIT B SCHEDULE OF SUBLEASE RENTALS [DATE] Total Sublease Rental Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 233 of 607 EXHIBIT C ENCUMBRANCES Attachment H - Sublease Agreement Item 3L - Lippincott 2nd Reading City Council Meeting Page 234 of 607 CITY OF BOULDER 2016-2023 PROPOSED BUDGET OPEN SPACE FUND 2017 2018 2019 2020 2021 2022 2023 2024 Actuals Approved Recommended Projected Projected Projected Projected Projected Beginning Fund Balance 42,674,844$ 40,624,442$ 14,497,645$ 15,449,192$ 12,553,862$ 10,722,299$ 9,694,595$ 9,477,707$ Sources of Funds Net Sales Tax Revenue 29,766,020$ 29,135,223$ 25,728,383$ 20,992,284$ 21,272,691$ 21,601,090$ 21,935,541$ 22,276,158$ Anticipated FEMA Flood Reimbursement 1,725,750 1,531,329 1,500,000 - - - - - Investment Income 330,048 335,362 342,405 348,191 354,076 360,060 366,145 372,332 Lease and Miscellaneous Revenue 922,147 1,063,899 1,095,816 1,128,690 1,162,551 1,197,428 1,233,351 1,270,351 Voice & Sight Tag Program Revenue 127,000 127,000 127,000 127,000 127,000 127,000 127,000 127,000 General Fund Transfer 1,209,590 1,138,820 1,138,820 - - - - - Grants - - - - - - - - Total Sources of Funds 34,080,556$ 33,331,633$ 29,932,424$ 22,596,166$ 22,916,318$ 23,285,577$ 23,662,036$ 24,045,841$ Uses of Funds General Operating Expenditures -$ -$ Office of the Director 1,775,410 2,019,237 1,731,423 1,529,846 1,545,145 1,560,596 1,576,202 1,591,964 Central Services 2,812,917 2,892,094 2,571,015 2,546,725 2,572,192 2,597,914 2,573,893 2,599,632 Community Connections & Partnerships 4,168,196 4,539,253 4,371,032 4,364,742 4,214,390 4,110,332 4,039,209 3,976,148 Resources & Stewardship 4,195,052 4,438,798 4,333,186 4,249,590 4,292,085 4,223,006 4,265,236 4,307,889 Trails & Facilities 4,564,736 4,703,173 5,315,205 5,318,357 4,656,540 4,703,106 4,750,137 4,797,638 Carryover/ATB Operating - 5,287,331 - - - - - - Cost Allocation 1,903,344 1,960,444 2,090,102 2,142,355 2,195,913 2,250,811 2,307,082 2,422,436 CIP- Capital Enhancement 6,360,358 3,050,000 180,000 180,000 180,000 180,000 180,000 180,000 CIP- Capital Maintenance 1,492,126 1,057,300 2,770,000 1,570,000 1,570,000 1,270,000 1,270,000 1,270,000 CIP- Capital Planning Studies 98,028 100,000 130,000 130,000 130,000 130,000 130,000 130,000 CIP- New Facility/Infrastructure --- --- CIP- Land Acquisition 3,296,111 24,172,485 1,653,736 1,653,736 1,653,736 1,553,736 1,053,736 1,053,736 Lippincott Ranch 775,000 Other 2018 Approved Acquisition Expense 16,256,675 Remaining Land Acquisition Capital Available 7,140,810 Transfer to BMPA 1,002,209 767,597 1,153,791 1,153,791 1,084,424 1,084,424 1,084,424 490,769 Debt Service - Bonds & Notes 4,462,469 4,470,719 2,681,388 652,356 653,456 649,356 649,006 648,431 Total Uses of Funds 36,130,957$ 59,458,430$ 28,980,876$ 25,491,496$ 24,747,881$ 24,313,281$ 23,878,924$ 23,468,642$ Ending Fund Balance Before Reserves 40,624,443$ 14,497,645$ 15,449,192$ 12,553,862$ 10,722,299$ 9,694,595$ 9,477,707$ 10,054,907$ Reserves OSBT Contingency Reserve 4,976,867$ 5,158,263$ 4,849,428$ 4,391,552$ 3,818,546$ 2,753,341$ 2,336,971$ 2,708,538$ OSMP Campus Vision 3,000,000 3,000,000 4,000,000 4,200,000 4,200,000 4,200,000 4,200,000 4,500,000 Pay Period 27 Reserve 330,119 354,440 378,762 403,083 427,404 451,726 476,047 500,368 Sick/Vacation/Bonus Reserve 490,000 490,000 490,000 490,000 490,000 490,000 490,000 490,000 Property and Casualty Reserve 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 FEMA De-obligation Reserve 227,445 377,945 383,488 383,488 383,488 383,488 383,488 383,488 Total Reserves 9,424,431$ 9,780,648$ 10,501,678$ 10,268,123$ 9,719,438$ 8,678,555$ 8,286,506$ 8,982,394$ Ending Fund Balance After Reserves 31,200,012$ 4,716,997$ 4,947,514$ 2,285,739$ 1,002,861$ 1,016,040$ 1,191,202$ 1,072,513$ Revenue projections 97.56%97.80%89.80%75.49%101.42%101.61%103.11%103.11% OPEN SPACE AND MOUNTAIN PARKS ATTACHMENT I-1 Item 3L - Lippincott 2nd Reading City Council Meeting Page 235 of 607 CITY OF BOULDER 2016-2023 PROPOSED BUDGET OPEN SPACE FUND 2017 2018 2019 2020 2021 2022 2023 2024 Actuals Approved Recommended Projected Projected Projected Projected Projected Beginning Fund Balance 42,674,844$ 40,624,442$ 14,497,645$ 15,694,576$ 13,044,630$ 11,458,452$ 10,676,132$ 10,704,629$ Sources of Funds Net Sales Tax Revenue 29,766,020$ 29,135,223$ 25,728,383$ 20,992,284$ 21,272,691$ 21,601,090$ 21,935,541$ 22,276,158$ Anticipated FEMA Flood Reimbursement 1,725,750 1,531,329 1,500,000 - - - - - Investment Income 330,048 335,362 342,405 348,191 354,076 360,060 366,145 372,332 Lease and Miscellaneous Revenue 922,147 1,063,899 1,095,816 1,128,690 1,162,551 1,197,428 1,233,351 1,270,351 Voice & Sight Tag Program Revenue 127,000 127,000 127,000 127,000 127,000 127,000 127,000 127,000 General Fund Transfer 1,209,590 1,138,820 1,138,820 - - - - - Grants - - - - - - - - Total Sources of Funds 34,080,556$ 33,331,633$ 29,932,424$ 22,596,166$ 22,916,318$ 23,285,577$ 23,662,036$ 24,045,841$ Uses of Funds General Operating Expenditures -$ -$ Office of the Director 1,775,410 2,019,237 1,731,423 1,529,846 1,545,145 1,560,596 1,576,202 1,591,964 Central Services 2,812,917 2,892,094 2,571,015 2,546,725 2,572,192 2,597,914 2,573,893 2,599,632 Community Connections & Partnerships 4,168,196 4,539,253 4,371,032 4,364,742 4,214,390 4,110,332 4,039,209 3,976,148 Resources & Stewardship 4,195,052 4,438,798 4,333,186 4,249,590 4,292,085 4,223,006 4,265,236 4,307,889 Trails & Facilities 4,564,736 4,703,173 5,315,205 5,318,357 4,656,540 4,703,106 4,750,137 4,797,638 Carryover/ATB Operating - 5,287,331 - - - - - - Cost Allocation 1,903,344 1,960,444 2,090,102 2,142,355 2,195,913 2,250,811 2,307,082 2,422,436 CIP- Capital Enhancement 6,360,358 3,050,000 180,000 180,000 180,000 180,000 180,000 180,000 CIP- Capital Maintenance 1,492,126 1,057,300 2,770,000 1,570,000 1,570,000 1,270,000 1,270,000 1,270,000 CIP- Capital Planning Studies 98,028 100,000 130,000 130,000 130,000 130,000 130,000 130,000 CIP- New Facility/Infrastructure --- --- CIP- Land Acquisition 3,296,111 24,172,485 1,653,736 1,653,736 1,653,736 1,553,736 1,053,736 1,053,736 Lippincott Ranch 375,000 Other 2018 Approved Acquisition Expense 16,256,675 Remaining Land Acquisition Capital Available 7,540,810 Transfer to BMPA 1,002,209 767,597 908,406 908,406 839,039 839,039 839,039 245,384 Debt Service - Bonds & Notes 4,462,469 4,470,719 2,681,388 652,356 653,456 649,356 649,006 648,431 Total Uses of Funds 36,130,957$ 59,458,430$ 28,735,492$ 25,246,112$ 24,502,496$ 24,067,897$ 23,633,540$ 23,223,257$ Ending Fund Balance Before Reserves 40,624,443$ 14,497,645$ 15,694,576$ 13,044,630$ 11,458,452$ 10,676,132$ 10,704,629$ 11,527,213$ Reserves OSBT Contingency Reserve 4,976,867$ 5,158,263$ 4,800,351$ 4,342,475$ 4,193,752$ 3,558,807$ 3,569,967$ 4,117,904$ OSMP Campus Vision 3,000,000 3,000,000 4,000,000 4,200,000 4,200,000 4,200,000 4,200,000 4,500,000 Pay Period 27 Reserve 330,119 354,440 378,762 403,083 427,404 451,726 476,047 500,368 Sick/Vacation/Bonus Reserve 490,000 490,000 490,000 490,000 490,000 490,000 490,000 490,000 Property and Casualty Reserve 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 FEMA De-obligation Reserve 227,445 377,945 383,488 383,488 383,488 383,488 383,488 383,488 Total Reserves 9,424,431$ 9,780,648$ 10,452,601$ 10,219,046$ 10,094,644$ 9,484,021$ 9,519,502$ 10,391,760$ Ending Fund Balance After Reserves 31,200,012$ 4,716,997$ 5,241,975$ 2,825,584$ 1,363,808$ 1,192,111$ 1,185,127$ 1,135,452$ Revenue projections 97.56%97.80%89.80%75.49%101.42%101.61%103.11%103.11% OPEN SPACE AND MOUNTAIN PARKS ATTACHMENT I-2 Item 3L - Lippincott 2nd Reading City Council Meeting Page 236 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E C onsideration of a motion to adopt a Resolution to approve and authorize the issuance of a Boulder Municipal Property Authority Lease Purchase Revenue C arry-Back Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property and a Deed of Trust for the benefit of the registered owner of the note, and to approve and accept the assignment of the purchase contract to Boulder Municipal Property Authority, the execution and delivery of a Lease Purchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to J efferson C ounty; and setting forth related details and consideration of a motion to adjourn from the Boulder Municipal Property Authority Board of Directors and reconvene as the Boulder C ity C ouncil. P RI MARY STAF F C ON TAC T Bethany C ollins, Property Agent RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E Motion to adopt a Resolution to approve and authorize the issuance of a Boulder Municipal Property Authority Lease Purchase Revenue Carry-Back Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property and a Deed of Trust for the benefit of the registered owner of the note, and to approve and accept the assignment of the purchase contract to Boulder Municipal Property Authority, the execution and delivery of a Lease Purchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to J efferson County; and setting forth related details. Motion to adjourn from the Boulder Municipal Property Authority Board of Directors and reconvene as the Boulder City C ouncil. AT TAC H ME N T S: Description Memo and Attachments City Council Meeting Page 237 of 607 CITY OF BOULDER BOULDER MUNICIPAL PROPERTY AUTHORITY AGENDA ITEM MEETING DATE: September 4, 2018 AGENDA TITLE Consideration of a motion to adopt a Resolution to approve and authorize the issuance of a Boulder Municipal Property Authority Lease Purchase Revenue Carry-Back Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property and a Deed of Trust for the benefit of the registered owner of the note, and to approve and accept the assignment of the purchase contract to Boulder Municipal Property Authority, the execution and delivery of a Lease Purchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to Jefferson County; and setting forth related details and consideration of a motion to adjourn from the Boulder Municipal Property Authority Board of Directors and reconvene as the Boulder City Council PRESENTERS Jane S. Brautigam, City Manager Dan Burke, Interim Director, Open Space and Mountain Parks Bethany Collins, Interim Real Estate Services Supervisor EXECUTIVE SUMMARY On July 17, 2018, City Council unanimously approved motions to acquire the 442-acre Lippincott Ranch property (see Attachments B and C - the “Property”) and appurtenant water and mineral rights for open space purposes for $7.75 million from Charles and Shirley Lippincott, as well as the potential future disposal of a 50 percent undivided interest in the Property to Jefferson County Open Space (JCOS). Those approvals included the option to acquire the Property via cash-at-closing or using Boulder Municipal Property Authority (BMPA) financing. Open Space and Mountain Parks (OSMP) real estate staff and the Lippincotts have negotiated a transaction that involves earnest funds and down payment of $775,000 and utilizing a 20-year BMPA note with 3.5 percent interest for the $6,975,000 principal amount. The annual 20-year payments of $490,768.51 may be shared equally between the City of Boulder and JCOS under an optional sublease arrangement, subject to approval by the Jefferson County Board of Item 3M - Lippincott BMPA City Council Meeting Page 238 of 607 County Commissioners. Without the availability of the BMPA financing option, it is unlikely the Lippincott family would pursue the sale of the Property to the city. BMPA was formed in 1988 as a Colorado non-profit organization for the benefit of the City of Boulder. The members of the City Council are BMPA’s directors and the Mayor is the president. Over the years, BMPA has purchased dozens of properties for open space purposes. In addition, several non-open space properties have been purchased and financed by BMPA, including the East Boulder Community Center. For this transaction, the purchase agreement between the City and the Lippincotts will be assigned by the City to BMPA (Attachment D). BMPA will then issue a carry-back note to acquire property (Attachment E) secured by deeds of trust for both counties (Attachments F-1 and F-2), acquire the property, and then lease the property to the City of Boulder under a lease- purchase agreement for an annual rental equal to the debit service on the note (Attachment G). In addition, for this particular purchase, upon mutually agreeable terms, the City will enter into a sublease agreement with Jefferson County of a 50 percent undivided interest in the Property to Jefferson County (Attachment H). Under the terms of this sublease, the County would be responsible for 50 percent of annual rent payments. This mountain backdrop property is unique due to its diverse resources and open space values and has been a high priority for acquisition by both OSMP and JCOS for decades. The Property is identified in the goals, recommendations, objectives and criteria of various JCOS and OSMP open space plans. The Property includes diverse ecosystems, wetlands and riparian habitats, and rare and sensitive plant and animal species, along with its spectacular scenic views. The Property is in a highly strategic location adjacent to lands currently owned or conserved by OSMP and JCOS. The acquisition will allow the two agencies to collaborate on their first joint land management plan. Because of the Property’s location, it is critical for JCOS and OSMP to purchase and preserve this property to protect unfragmented open space for landscape-scale conservation and management, as well as potential regional trail connections. STAFF RECOMMENDATION Suggested Motion Language Staff requests BMPA consideration of this matter and action in the form of the following motions: Motion to adopt a Resolution to approve and authorize the issuance of a Boulder Municipal Property Authority Lease Purchase Revenue Carry-Back Note, Series 2018A, in the principal amount of $6,975,000 for the purchase of the Lippincott Ranch property and a Deed of Trust for the benefit of the registered owner of the note, and to approve and accept the assignment of the purchase contract to Boulder Municipal Property Authority, the execution and delivery of a Lease Purchase Agreement and the optional execution of a Sublease of a 50 percent undivided interest in the property to Jefferson County; and setting forth related details. Motion to adjourn from the Boulder Municipal Property Authority Board of Directors and reconvene as the Boulder City Council. Item 3M - Lippincott BMPA City Council Meeting Page 239 of 607 COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS • Environmental: OSMP is a significant community-supported program that is recognized worldwide as a leader in preservation of Open Space lands contributing to the environmental sustainability goal of the City Council. The city’s acquisition of the Property, and its integration into OSMPs land and resource management and visitor service programs, help preserve, protect and enhance the values of the city’s Open Space system. • Economic: OSMP contributes to the economic vitality goal of the city as it provides the context for the diverse and vibrant economic system that sustains services for residents. Acquiring properties, such as this Property for Open Space, supports the city’s quality of life which attracts visitors and helps businesses recruit and retain quality employees. • Social: OSMP lands, facilities and programs are equally accessible to all members of the community, and as such, they help to support the city's community sustainability goal because all residents "who live in Boulder can feel a part of and thrive in" this aspect of their community. OTHER IMPACTS • Fiscal: The purchase price for the Property is $7,750,000 payable as $77,500 earnest funds and $697,500 down payment with the balance of $6,975,000 payable over the next 20 years at 3.5 percent interest with annual payments of $490,768.51. Fifty percent of these costs may be paid by Jefferson County pursuant to an optional sublease. Cash Flow Projections for both scenarios are attached (Attachment I-1 and I-2). OSMP has been anticipating the purchase costs associated with the Property in its budget development. • Staff time: This acquisition is part of the normal 2018 work plan for the OSMP Real Estate Workgroup. BOARD AND COMMISSION FEEDBACK At its June 13, 2018 meeting and public hearing to approve the purchase and funding scenarios for the Property acquisition, by a vote of 5-0, the Open Space Board of Trustees unanimously recommended City Council approval of the purchase of the Property. PUBLIC FEEDBACK This item was heard at the June 13, 2018 Open Space Board of Trustees public meeting advertised in the Daily Camera on March 11, 2018. There was no public comment provided. This item was heard at the July 17, 2018 City Council public meeting and approved by a vote of 9-0. One member of the public spoke in support of the acquisition. First reading of the City Council ordinance related to this item was on the consent agenda at the August 21, 2018 City Council public meeting and was approved by a vote of 9-0. ATTACHMENTS • Attachment A – Proposed Resolution #______ • Attachment B – Vicinity Map • Attachment C -- Property Map • Attachment D -- Assignment of Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 240 of 607 • Attachment E -- Carry-Back Note • Attachment F-1 – Deed of Trust (Boulder County) • Attachment F-2 – Deed of Trust (Jefferson County) • Attachment G – Lease Purchase Agreement • Attachment H – Sublease Agreement • Attachment I-1 – Cash Flow Projection – BMPA Purchase (100% City) • Attachment I-2 – Cash Flow Projection – BMPA Purchase (50% City/50% JCOS) Item 3M - Lippincott BMPA City Council Meeting Page 241 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc 1 R E S O L U T I O N NO. ______ A RESOLUTION OF THE BOULDER MUNICIPAL PROPERTY AUTHORITY APPROVING AND AUTHORIZING THE ISSUANCE OF A BOULDER MUNICIPAL PROPERTY AUTHORITY LEASE PURCHASE REVENUE CARRY-BACK NOTE SERIES 2018A, IN THE PRINCIPAL AMOUNT OF $6,975,000 FOR THE PURCHASE OF THE LIPPINCOTT RANCH PROPERTY AND A DEED OF TRUST FOR THE BENEFIT OF THE REGISTERED OWNER OF THE NOTE, AND APPROVING AND ACCEPTING THE ASSIGNMENT OF THE PURCHASE CONTRACT TO THE BOULDER MUNICIPAL PROPERTY AUTHORITY, THE EXECUTION AND DELIVERY OF A LEASE PURCHASE AGREEMENT, AND THE OPTIONAL EXECUTION BY THE CITY OF A SUBLEASE OF A 50 PERCENT UNDIVIDED INTEREST IN THE PROPERTY TO JEFFERSON COUNTY, AND SETTING FORTH RELATED DETAILS. THE BOULDER MUNICIPAL PROPERTY AUTHORITY WHEREAS, the City of Boulder, Colorado (the "City"), has been duly organized and is validly existing as a home rule city under the Colorado Constitution, and the home rule charter of the City (the “Charter”); and WHEREAS, the City has previously authorized the creation of a non-profit corporation known as “The Boulder Municipal Property Authority” (the "Authority") as an instrumentality of the City for certain purposes, under the Colorado Non-profit Corporation Act, Articles 20 through 29, Title 7, Colorado Revised Statutes (the "Act"), pursuant to the provisions of an ordinance duly adopted by the City Council of the City; and WHEREAS, under the Articles of Incorporation of the Authority (the "Articles"), the objects and purposes for which the Authority has been founded and incorporated are: (i) to purchase, lease or otherwise acquire real estate, and to construct, install or acquire and place thereon any and all public improvements, or to maintain such real estate as open space, and to purchase, lease or otherwise acquire personal property of any kind, all for the use and benefit of the City, and to lease, convey, donate, sell, transfer or otherwise make available such real estate improvements, if any, and personal property to the City; (ii) to operate, maintain, repair, and improve or to cause to be operated, maintained, repaired, and improved any and all real property and improvements, if any, as well as personal property acquired, constructed or installed by the Authority; (iii) upon the prior approval of a majority of the membership of the City Council of the City, by ordinance or resolution duly adopted, to borrow money and become indebted, and to execute and deliver bonds, notes, Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 242 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc 2 debentures, or other evidences of indebtedness for the purpose of acquiring such real or personal property, constructing, installing, and acquiring such improvements, if any, or maintaining any such real property as open space, and for such other purpose or purposes as may be necessary to accomplish the objectives of the Authority, such indebtedness to be either unsecured or secured by any mortgage, trust deed, or other lien upon the property to be acquired, or any other rights or interests of the Authority; and (iv) to conduct the business of the Authority in such manner so that the real and personal property and improvements thereon shall benefit the City; and WHEREAS, the Authority is possessed under the Articles of all powers set forth in the Act, the Constitution, and other laws of the State of Colorado; and WHEREAS, the City and Charles Lippincott, also known as Charles Thomas Lippincott and Shirley Lippincott, also known as Shirley Ann Lippincott, have entered into a Purchase Agreement (Lippincott Ranch Property) dated as of July 31, 2018 (the “Purchase Agreement”), for the acquisition of certain real property within the Counties of Jefferson and Boulder, State of Colorado, consisting of approximately 442 acres as described in Exhibit A hereto (the “Property”), for purposes including open space, agriculture, scenic preservation, passive recreation, and trails (“Open Space Purposes”); and WHEREAS, pursuant to the Assignment of Purchase Agreement (the “Assignment”), the City desires to assign certain City rights and obligations under the Purchase Agreement to the Authority to facilitate financing the acquisition of the Property and to confirm certain obligations of the City to provide funds for such purchase; and WHEREAS, contingent on the City passing its authorizing ordinance, the Authority intends to issue its $6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property) Series 2018A (the “Note”) in connection with the acquisition of the Property; and WHEREAS, the Note shall be secured by one or more deeds of trust (collectively, the “Deed of Trust”) providing a lien against the Property; and WHEREAS, the Property is to be leased by the Authority to the City pursuant to a Lease Purchase Agreement (the “Lease Agreement”); and WHEREAS, Jefferson County, Colorado (the “County”) desires to participate in the acquisition of the Property for Open Space Purposes and the City and County will enter into an Intergovernmental Agreement approved by the City Council of the City on July 17, 2018 and subject to section 177 of the City’s charter and authorized by the County, setting forth certain terms for the acquisition, funding and management of the Property should the County participate in the acquisition as set forth herein; and WHEREAS, should the County participate in the acquisition, the City and the County shall enter into the Sublease (the “Sublease”), pursuant to which the County shall contribute 50% of the purchase Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 243 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc 3 price of the Property and make 50% of the City’s Base Rental Payments under the Lease Agreement in exchange for an undivided 50% interest in the Property, the draft form of which Sublease has been presented to the City Council; and WHEREAS, the proposed forms of the Assignment, the Note, the Deed of Trust, the Lease Agreement and the Sublease have been presented before the Board of Directors of the Authority at this meeting; and WHEREAS, the City Council has authorized and approved the issuance of the Note secured by the Deed of Trust by the Authority for the purpose described herein and has authorized the execution and delivery by the City of the Assignment, the Lease Agreement and the Sublease should the County participate in the acquisition by the City; and WHEREAS, the Board of Directors of the Authority is desirous of accepting the Assignment and authorizing the issuance of the Note in substantially the form presented at this meeting, and the execution and delivery by the Authority of the Assignment, the Note, the Deed of Trust and the Lease Agreement, all in substantially the forms presented at this meeting, and is further desirous of authorizing and approving the form of the Sublease presented at this meeting, all in accordance with provisions of the Articles. NOW, THEREFORE, be it resolved by the Board of Directors of The Boulder Municipal Property Authority as follows: 1.Approval of Prior Action. All action heretofore taken (not inconsistent with the provisions of this Resolution) by the Board of Directors of the Authority toward the creation and establishment of the Authority and the accomplishment of the transactions herein authorized are hereby ratified, approved, and confirmed. 2.Approval of Assignment, Lease Agreement and Deed of Trust. The proposed Assignment, Lease Agreement and Deed of Trust in substantially the forms presented at this meeting, are in all respects approved, accepted, authorized, and confirmed, with such changes thereto, not inconsistent herewith, as may be necessary or desirable and approved by the officials of the Authority executing the same whose manual signatures thereon shall constitute conclusive evidence of such approval, and the findings and determinations made therein are hereby incorporated in this resolution as findings and determinations of the Authority; and the President of the Authority is authorized to execute and deliver the Assignment, Lease Agreement and Deed of Trust on behalf of the Authority, and the Secretary-Treasurer of the Authority is authorized to attest and affix the seal of the Authority to the same. . 3.Issuance of the Note. The Authority shall issue the Note pursuant to this Resolution in the principal amount of $6,975,000, and such issuance is, in all respects, hereby approved, Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 244 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc 4 authorized, and confirmed by the Authority. The Note shall be issued solely in fully registered form without coupons and shall be in substantially the form set forth in Exhibit B hereto, with such changes as shall not be inconsistent herewith. The terms and provisions of the Note, including, but not limited to, maturities, interest rates, denominations, and the provisions for the signatures, payment, registration, transfer, and number are set forth in Exhibit B hereto. Exhibits A and B are hereby incorporated by reference into this Resolution. 4.Delivery of the Note. The President of the Authority is hereby authorized and directed to execute and deliver to Seller, or its written designee or assignee, the Note upon transfer of title of the Property to the Authority. The Authority elects to apply all of the provisions of Part 2 of Article 57 of Title 11, C.R.S. to the issuance and delivery of the Note. 5.The Sublease. The proposed Sublease, in substantially the form presented at this meeting, is in all respects approved, authorized, and confirmed, with such changes thereto, not inconsistent herewith, as may be necessary or desirable and approved by the officials of the City and County executing the same. 6.Other Action. The President, the Secretary-Treasurer and other appropriate officers of the Authority are hereby authorized and directed to take all other action necessary or reasonably required by the terms of the Note, the Lease Agreement and the Deed of Trust to carry out, give effect to, and consummate the transactions contemplated thereby. 7.No Indebtedness of the City. No provision of this Resolution nor of the Lease Agreement, the Deed of Trust, the Note, the Sublease or any other instrument shall be construed as creating an indebtedness or obligation on the part of the City to pay the principal of or interest on the Note. The City shall have no power to pay out of its funds, revenues , or accounts, or otherwise contribute any part of the cost of acquiring the Property or of making any payment in respect to the Note. 8.Security for Note. The Note and all obligations of the Authority under this Resolution, the Lease Agreement and the Deed of Trust constitute special, limited revenue obligations of the Authority, payable solely from rental payments made by the City under the Lease Agreement (or from sublease payments made by the County pursuant to the Sublease, if applicable) and from the net proceeds, if any, of foreclosure and sale of the Property pursuant to the Deed of Trust. All payment obligations of the City under the Lease Agreement, including, without limitation, the obligation of the City to pay rentals, are from year to year only, are subject to the appropriation in each year by the City Council of monies from the City's Open Space and Street Fund maintained under Section 3-18-1, Boulder Revised Code 1981, sufficient to make said payments, and do not constitute a mandatory payment obligation of the City in any fiscal year beyond a fiscal year in which the Lease Agreement shall, by its terms, be in effect. The Lease Agreement is subject to annual renewal at the option of the City and will be terminated upon the occurrence of an event of nonappropriation, and the failure of the Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 245 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc 5 County to cure the nonappropriation event pursuant to the terms of the Sublease. In such event, all payments from the City under the Lease Agreement will terminate, and the Note and the interest thereon shall be payable only from monies made available, if any, from foreclosure on the Property pursuant to the Deed of Trust. 9. Covenants Concerning Tax Exemption of Interest on the Note. The Authority covenants that it shall not use or permit the use of any proceeds of the Note or any other funds of the Authority from whatever source derived, directly or indirectly, to acquire any securities or obligations and shall not take or permit to be taken any other action or actions which would cause the Note to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), or would otherwise cause the interest on the Note to be includable in gross income for federal income tax purposes. The Authority covenants that it shall at all times do and perform all acts and things permitted by law and which are necessary or desirable in order to assure that interest paid by the Authority on the Note shall, for purposes of federal income taxation, not be includable in gross income under the Code or any other valid provision of law. In particular, but without limitation, the Authority further represents, warrants, and covenants to comply with the following restrictions of the Code, unless it receives an opinion of nationally recognized bond counsel stating that such compliance is not necessary: (a) Gross proceeds of the Note will not be used in a manner which will cause the Note to be considered a "private activity bond" within the meaning of the Code. (b) The Note is not and shall not become directly or indirectly "federally guaranteed." (c) The Authority shall timely file Internal Revenue Form 8038-G which shall contain the information required to be filed pursuant to Section 149(e) of the Code. 10. The Authority hereby establishes "The Boulder Municipal Property Authority Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property) Series 2018A Rebate Fund" (the "Rebate Fund"), which shall be expended in accordance with the provisions hereof. The Authority expects to expend all Note proceeds as of the date the Note is issued and expects to have no other gross proceeds of the Note other than monies which may be held in a bona fide debt service fund, which will be spent in its entirety within 12 months of receipt. To the extent that the Authority does receive gross proceeds of the Note, the Authority shall employ, at its expense, a person or firm with recognized expertise in the area of rebate calculation, to make required rebate calculations, and the Authority will pay all rebate amounts necessary to maintain the exclusion on interest on the Note from gross income for federal and State of Colorado income tax purposes. Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 246 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc 6 Records of any of the determinations required by this Section shall be retained by the Authority until four (4) years after the final retirement of the Note to the extent required by the Code. Not later than sixty (60) days after the end of the fifth anniversary of the date of issuance of the Note and every five (5) years thereafter, the Authority shall pay to the United States of America ninety percent (90%) of the amount required to be on deposit in the Rebate Fund (if any) as of such payment date. Not later than sixty (60) days after the final retirement of the Note, the Authority shall pay to the United States of America one hundred percent (100%) of the balance remaining in the Rebate Fund. Each payment required to be paid to the Ogden Submission Processing Center of the Internal Revenue Service located in Ogden, Utah 84201. Each payment must be accompanied by Internal Revenue Form 8038-T, and, if necessary, a statement summarizing the determination of the rebate amount. No form needs to be filed if no rebate payment is required. 11. Amendments to Documents by Authority. The President of the Authority is hereby authorized to make any alterations, changes, or additions in the Assignment, the Lease Agreement, the Note or the Deed of Trust which may be necessary to correct errors or omissions therein, to remove ambiguities therefrom, to conform the same to other provisions of said instruments to the provisions of this Resolution, any future resolution adopted by the Authority, or the provisions of the laws of the State of Colorado or the United States. 12. Appointment of Paying Agent. The Authority hereby appoints US Bank National Association, 180 E. 5th Street, St. Paul, MN 55101 as paying agent for the Note (the "Paying Agent"). The President of the Authority is hereby authorized to enter into a paying agency agreement with the Paying Agent in a form acceptable to the President of the Authority. 13. Severability. If any provision of this Resolution (including any Exhibits attached hereto) should be held invalid, the invalidity of such provisions shall not affect any of the other provisions of this Resolution or any Exhibits. 14. Other Actions by Authority. The Secretary-Treasurer of the Authority is hereby authorized and directed to attest to all signatures and acts of any proper officer of the Authority, and to place the seal of the Authority on the Lease Agreement, the Note, the Deed of Trust and any other documents authorized, necessary, or proper to carry out the purposes of this Resolution. The appropriate officers of the Authority, and each of them, are hereby authorized to execute and deliver for and on behalf of the Authority any or all additional certificates, documents, and other papers, and to perform all other acts they may deem necessary or appropriate in order to implement and carry out the matters authorized in this Resolution and any future resolution of the Authority. 15. Immediate Effect. The resolution shall take effect immediately upon its passage. Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 247 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc 7 RESOLUTION ADOPTED AND APPROVED this _____ day of September, 2018. [SEAL] _______________________________________ Suzanne Jones, President The Boulder Municipal Property Authority a Colorado non-profit corporation ATTEST: _______________________________________ Cheryl Pattelli, Secretary-Treasurer The Boulder Municipal Property Authority a Colorado non-profit corporation Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 248 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc Resolution 8/23/2018 A-1 EXHIBIT A to Resolution #________ LEGAL DESCRIPTION Parcel 1: The Southeast ¼ of the Southeast ¼ of Section 36, Township 1 South, Range 71 West of the 6th P.M., County of Boulder, State of Colorado. Parcel 2: That part of the Northeast ¼ lying West of and adjoining the West line of the Denver & Salt Lake Rail Road right-of-way as described in Book 126 at Page 113, Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado. Parcel 3: The Northeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except so much thereof as lies West of the East line of railroad right of way as shown by deed recorded in Book 126 at Page 113, Jefferson County, Colorado records. Parcel 4: The South ½ of the South ½ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado and the Northwest ¼ of the Southwest ¼ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado; and The Southeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except that portion of said Section 1 conveyed to The Denver Northwestern and Pacific Railway Company by the Quit Claim Deed recorded January 19, 1903 in Book 121 at Page 180, of the Jefferson County, Colorado records, and Except those portions of said Sections 1 and 6 conveyed to Katherine T. O’Connor by the Warranty Deed recorded October 26, 193 in Book 347 at Page 159, of the Jefferson County, Colorado records. Parcel 5: A non-exclusive easement for ingress and egress purposes over and across the Northwest ¼ of Section 7, Township 2 South, Range 70 West of the 6th P.M., Jefferson County, Colorado, said easement being over an existing access road and being 20 feet on each side of the following described centerline: Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 249 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc Resolution 8/23/2018 A-2 Beginning at a point on the North line of said Northwest ¼ of Section 7, from which point the Northwest corner of Section 7 bears North 88°46’26” West, a distance of 784.09 feet; thence along said centerline the following courses and distances: South 59°43’29” East, a distance of 5.41 feet to a point of curve; thence along a curve to the left having a radius of 143.37 feet, a central angle of 19°47’00”, an arc distance of 49.50 feet to a point of tangency; thence South 79°30’29” East, a distance of 155.12 feet to a point of curve; thence along a curve to the right having a radius of 316.01 feet, a central angle of 10°50’45”, an arc distance of 59.82 feet to a point of tangency; thence South 68°39’43” East, a distance of 111.37 feet to a point of curve; thence along a curve to the right having a radius of 227.37 feet, a central angle of 19°57’19”, an arc distance of 79.19 feet to a point of tangency; thence South 48°42’24” East, a distance of 238.34 feet to a point of curve; thence along a curve to the left having a radius of 401.68 feet, a central angle of 16°59’28”, an arc distance of 119.12 feet to a point of tangency; thence South 65°41’53” East, a distance of 240.47 feet to a point of curve; thence along a curve to the right having a radius of 102.46 feet, a central angle of 60°42’17”, an arc distance of 108.56 feet to a point of tangency, said point being on the existing centerline of a road deeded to Jefferson County on August 6, 1935, by deed recorded in Book 374 at Page 140, and from which point the Northwest corner of Section 7 bears North 72°14’59” West, a distance of 1862.34 feet. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not limited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 250 of 607 B-1 EXHIBIT B Boulder, Colorado $6,975,000 CARRY-BACK NOTE THIS CARRY-BACK NOTE HAS BEEN PRIVATELY PLACED BY THE BOULDER MUNICIPAL PROPERTY AUTHORITY; ANY REGISTERED OWNER HEREOF, INCLUDING ANY TRANSFEREE, IS RESPONSIBLE FOR MAKING ITS OWN INVESTMENT DECISION, AND ANY SUCH REGISTERED OWNER IS NOT ENTITLED TO RELY ON THE AUTHORITY OR THE CITY OF BOULDER, COLORADO, FOR PURPOSES OF DISCLOSURE WITH RESPECT TO SAID REGISTERED OWNER’S DECISION IN PURCHASING THIS NOTE. BY ITS OWNERSHIP OF THIS NOTE, THE REGISTERED OWNER HEREOF ACCEPTS THE FOREGOING PROVISIONS. $6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property), Series 2018A FOR VALUE RECEIVED, The Boulder Municipal Property Authority (the “Authority”) promises to pay to Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott, in the manner and only from the sources hereinafter provided, the principal sum of six million nine hundred seventy-five thousand dollars ($6,975,000), together with interest on unpaid principal from the date hereof until paid, at the rate of 3.5% per annum, said principal and interest to be payable in 20 annual payments pursuant to the following schedule (said schedule to be conclusive with respect to the interest payments hereon notwithstanding the foregoing provisions of this Note), provided however, that should any payment date set forth in the Payment Schedule, below, not be a business day on which the Authority’s Paying Agent, which shall initially be U.S. Bank National Association (the “Paying Agent”), shall be open for business, then such payment shall be made on the succeeding business day that the Paying Agent is open for business. Such monthly payments shall first be applied to interest payable on this Note with the remainder applied to the payment of the outstanding principal. [Remainder of Page Intentionally Left Blank – Payment Schedule Follows] Payment Schedule _____ of ______ Year Principal Amount Interest Amount Total Payment Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 251 of 607 B-2 2019 $246,643.51 $244,125.00 $490,768.51 2020 255,276.03 235,492.48 490,768.51 2021 264,210.69 226,557.82 490,768.51 2022 273,458.07 217,310.44 490,768.51 2023 283,029.10 207,739.41 490,768.51 2024 292,935.12 197,833.39 490,768.51 2025 303,187.85 187,580.66 490,768.51 2026 313,799.42 176,969.09 490,768.51 2027 324,782.40 165,986.11 490,768.51 2028 336,149.79 154,618.72 490,768.51 2029 347,915.03 142,853.48 490,768.51 2030 360,092.06 130,676.45 490,768.51 2031 372,695.28 118,073.23 490,768.51 2032 385,739.61 105,028.90 490,768.51 2033 399,240.50 91,528.01 490,768.51 2034 413,213.92 77,554.59 490,768.51 2035 427,676.40 63,092.11 490,768.51 2036 442,645.08 48,123.43 490,768.51 2037 458,137.66 32,630.85 490,768.51 2038 474,172.47 16,596.04 490,768.51 The principal of and interest on this Note are payable in lawful monies of the United States of America without deduction for collection charges. The principal of and interest on this Note are payable to the registered owner hereof by wire transfer according to the instructions provided by the person in whose name the Note is registered, or, if requested by the Authority, by wire transfer according to the instructions provided by the person in whose name this Note is registered, on the registration books of the Authority at the close of business on the day preceding such principal and interest payment date, whether or not a business day (the “Record Date”); provided, however, that the final payment of the principal of and interest hereon shall be made solely upon presentation and surrender of this Note at the office of the Authority, 1777 Broadway, Boulder, Colorado 80302. If the wiring instructions for the registered owner change during the course of the payment of this Note, it is the responsibility of the registered owner hereof to notify the Paying Agent and provide the Paying Agent with new wiring instructions. If such wire transfer is rejected, the Paying Agent shall hold such payment (without accruing additional interest) until it has been provided with new wire instructions from the registered owner hereof. If, due to the registered owner’s failure to provide the Paying Agent with proper wiring instructions, payment is received by a party other than the registered owner hereof, neither the Authority nor the Paying Agent shall be held responsible for such payment(s) to the registered owner hereof. This Note is a note of the Authority denominated as “$6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property), Series 2018A” issued in the principal amount of six million nine hundred seventy-five thousand dollars ($6,975,000) (the “Note”). As provided in the resolution of the Authority authorizing this Note (the “Resolution”), this Note is issuable solely in Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 252 of 607 B-3 the form of one fully registered note without coupons and in the denomination of six million nine hundred seventy-five thousand dollars ($6,975,000). This Note is issued to acquire certain open space property (the “Property”) to be leased to the City of Boulder, Colorado (the “City”). The Property so leased (the “Leased Property”) shall be leased pursuant to a Lease Purchase Agreement (the “Lease Agreement”). The Lease Agreement allows for the sublease of the Property to Jefferson County and for certain rights of cure by Jefferson County as provided in Section 13.5 of the Lease Agreement. For so long as the Jefferson County Sublease is in effect as provided in the Lease Agreement, then Jefferson County shall have a right to cure and pay the amounts due under this Note with the rental proceeds collectible under the Lease Agreement as permitted in the sublease to Jefferson County. This Note may be prepaid by the Authority at any time without penalty. The Authority may deem and treat the registered owner of this Note as the absolute owner hereof for all purposes (whether or not this Note shall be overdue), and any notice to the contrary shall not be binding upon the Authority. This Note is transferable by the registered owner hereof in person or by his attorney, duly authorized in writing, at the principal office of the Paying Agent designated above, but only in the manner, subject to the limitations and upon payment of the charges, provided in the Resolution. This Note may be transferred upon the registration books by delivery of this Note to the Paying Agent together with a written instrument or instruments of transfer in form and with guarantee of signature satisfactory to the Paying Agent, duly executed by the registered owner of this Note or his or her attorney-in-fact or legal representative, containing written instructions as to the details of the transfer of the Note, along with the social security number or federal employer identification number of such transferee and wire instructions, if applicable, for principal and interest payments on the Note to such transferee executed by the transferee. In the event of the transfer of this Note, the Paying Agent shall enter the transfer of ownership in the registration books. The Authority and the Paying Agent shall charge the registered owner of this Note for every such transfer an amount sufficient to reimburse the Authority and the Paying Agent for their reasonable fees and for any tax or other governmental charge required to be paid with respect to such transfer. The Authority may replace a lost, stolen or destroyed Note upon receiving indemnity satisfactory to the Authority from the registered owner thereof. EXCEPT TO THE EXTENT PAYABLE FROM NET PROCEEDS OF FORECLOSURE AND SALE OF THE LEASED PROPERTY PURSUANT TO A DEED OF TRUST DATED ---- [B]--- (THE “DEED OF TRUST”) FROM THE AUTHORITY TO THE PUBLIC TRUSTEES OF BOULDER AND JEFFERSON COUNTIES, COLORADO, FOR THE BENEFIT OF THE REGISTERED OWNER HEREOF, THIS NOTE SHALL BE PAYABLE SOLELY FROM RENTALS TO BE PAID BY THE CITY UNDER THE LEASE AGREEMENT OR FROM THE SUBLEASE PAYMENTS MADE BY THE COUNTY OF JEFFERSON, COLORADO (THE “COUNTY”) MADE PURSUANT TO THE SUBLEASE AGREEMENT DATED _______________ (THE “SUBLEASE”). ALL PAYMENT OBLIGATIONS OF THE CITY UNDER THE LEASE AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 253 of 607 B-4 OBLIGATION OF THE CITY TO PAY RENTALS, SHALL ONLY BE MADE FROM THE CITY’S OPEN SPACE AND STREET FUND MAINTAINED UNDER SECTION 3-18-1, BOULDER REVISED CODE 1981. ALL PAYMENT OBLIGATIONS OF THE CITY ARE FROM YEAR TO YEAR ONLY, AND DO NOT CONSTITUTE A MANDATORY PAYMENT OBLIGATION OF THE CITY IN ANY FISCAL YEAR BEYOND A FISCAL YEAR IN WHICH THE LEASE AGREEMENT, AS ANNUALLY RENEWED, SHALL THEN BE IN EFFECT. THE LEASE AGREEMENT IS SUBJECT TO ANNUAL RENEWAL AND APPROPRIATION AT THE OPTION OF THE CITY AND SHALL BE TERMINATED UPON THE EVENT OF NONAPPROPRIATION BY THE CITY AND THE FAILURE OF THE COUNTY TO CURE THE NONAPPROPRIATION EVENT PURSUANT TO THE TERMS OF THE SUBLEASE AGREEMENT. ALL PAYMENT OBLIGATIONS FROM THE CITY UNDER THE LEASE AGREEMENT SHALL TERMINATE, AND THIS NOTE AND THE INTEREST HEREON SHALL BE PAYABLE SOLELY FROM MONIES AVAILABLE, IF ANY, FROM FORECLOSURE ON THE LEASED PROPERTY PURSUANT TO THE DEED OF TRUST. None of the Lease Agreement, this Note or the Deed of Trust constitute a general obligation or other indebtedness of the City within the meaning of any constitutional, statutory, or home rule charter debt provision or limitation. None of the Lease Agreement, this Note or the Deed of Trust of the Authority have directly or indirectly obligated the City to make any payments beyond those appropriated for any fiscal year in which the Lease Agreement shall then be in effect. The obligations of the Authority under the Resolution and the Deed of Trust shall be discharged as and to the extent provided in the Resolution upon deposit of cash and/or United States government securities with an escrow agent, in which case the registered owner of this Note shall promptly release the lien of the Deed of Trust and shall be secured solely as provided in the Resolution. Upon receiving written notice of a default from the registered owner hereof confirming that the City has defaulted on payment hereunder or otherwise nonappropriated for the applicable fiscal year and the County has failed to cure such failure or annual nonappropriation, then the Authority shall have 30 days to cure such default, whereupon if such default is not cured, then the entire principal amount hereof, together with interest hereon, shall, at the election of the registered owner hereof, become due and payable, but only from the sources hereinabove described. Failure to exercise this election or any other remedies upon a default shall not constitute a waiver of that right in the event of a subsequent or continuing default. The rights or remedies of the registered owner hereof as provided in this Note and the Deed of Trust shall be cumulative and concurrent and may be pursued singly, successively, or together against the Leased Property at the sole discretion of the registered owner hereof. The failure to exercise any such right or remedy shall in no event be construed as a waiver or release of said rights or remedies, or of the rights to exercise them at any later time. Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 254 of 607 B-5 This Note may not be amended, modified, or changed, nor shall any waiver of any provision hereof be effective, except by an instrument in writing and signed by the party against whom enforcement of any waiver, amendment, change, modification or discharge is sought. It is hereby certified and recited that all the requirements of law have been fully complied with by the proper Authority officers in the issuance of this Note, and that this Note was duly and lawfully authorized by the Resolution duly adopted and approved by the Board of Directors of the Authority prior to the issuance hereof. The registered owner of this Note, by acceptance hereof, acknowledges and agrees to be bound by all provisions of the Resolution relating hereto and the Sublease Agreement for cure rights by the County of any defaults by the City hereunder. This Note shall not be entitled to any benefit under the Resolution, or become valid or obligatory for any purpose until the Paying Agent, as registrar, shall have signed the certificate of authentication hereon. [Remainder of Page Intentionally Left Blank – Signature Page Follows] Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 255 of 607 B-6 IN WITNESS WHEREOF, the Board of Directors of the Authority has caused this Note to be executed with the signature of the President of the Authority and attested by the signature of its Secretary-Treasurer and has caused the seal of the Authority to be impressed or imprinted hereon. Date: [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 256 of 607 B-7 CERTIFICATE OF AUTHENTICATION This Note is one of the Notes described in the within mentioned Resolution of the Authority. Date of Authentication: U.S. BANK NATIONAL ASSOCIATION, as Registrar By Authorized Officer Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 257 of 607 B-8 FORM OF ASSIGNMENT OF NOTE ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto (please print or type name and address of transferee) (Tax Identification or Social Security No. ) the within Note and all rights and title hereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Note on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Signature must be guaranteed by a member of a Medallion Signature Program. NOTE: PLEASE RETURN ORIGINAL NOTE WITH THIS ASSIGNMENT. The signature on this assignment must correspond with the name as it appears on the face of this original note. Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 258 of 607 S:\OSMP\ADMIN\Council\CC Memos 2018\Lippincott BMPA\2nd Reading and BMPA Reso Prelim\BMPA\Attachment A Lippincott_BMPA proposed resolution_082118.doc Resolution 8/23/2018 C-1 Attachment A - Proposed Resolution Item 3M - Lippincott BMPA City Council Meeting Page 259 of 607 User: ashlm1 Date: 5/30/2018 Document Path: E:\MapFiles\Property\Lippincott\VICINITYLippincott.mxd Legend ATTACHMENT B: Vicinity Map - Lippincott Ranch Property Approximate property boundaries from Boulder County Assessor’s data. Subject Property OSMP Lands County Lands Federal Lands City Limits County Boundaries Highway Roads I 012345 Miles BoulderBoulder LongmontLongmont LouisvilleLouisville S U B J E C T Item 3M - Lippincott BMPA City Council Meeting Page 260 of 607 VAN VLEET / JEFFCOFowlerDoudyDrawGoshawkRidge PrairieVistaFlatiron s Vi sta So uthFlatirons Vista North STENGEL II LINDSAY / JEFFCO HOGAN RANCH - (CE) ELDORADO MOUNTAIN (CONDA QUARRY) LINDSAY - West DUNN II JEWEL MOUNTAIN LAND CO. EBNER RUDD - WestMOORE FAMILY CoalCreekSouth Boulder D i v e r s i o n C a n a l SpringBro o kSouth Boul d er C k Sout h Dr awUser: ashlm1 Date: 6/5/2018 Document Path: E:\MapFiles\Property\Lippincott\PROPERTYLippincott.mxd Attachment C: Property Map Lippincott Ranch Property (Approximate property boundaries from Boulder County Assessor’s data.) Subject Property OSMP Ownership OSMP Conservation Easement Jefferson County Ownership Hiking Trail Multi-Use Trail Railroads Main Ditch Perennial Stream Intermittent Stream Aqueduct 0 1,200 2,400 3,600 4,800 Feet I Pl ainview Rd. Mickey Mouse Wall Item 3M - Lippincott BMPA City Council Meeting Page 261 of 607 ASSIGNMENT OF REAL ESTATE CONTRACT INTERESTS THIS REAL ESTATE ASSIGNMENT AGREEMENT is made and entered into on this _____day of ___________, 2018, by and between the City of Boulder, a Colorado home rule city (“Boulder”) and the Boulder Municipal Property Authority, a non-profit Colorado corporation (“BMPA”). RECITALS A.Boulder has entered into a Purchase Agreement for the Lippincott Ranch Property dated July 31, 2018 (“the Contract”) to purchase interests in land, water rights and mineral rights within the Counties of Jefferson and Boulder, State of Colorado from Charles Lippincott, also known as Charles Thomas Lippincott and Shirley Lippincott, also known as Shirley Ann Lippincott. B.The Contract provides that Boulder may assign its rights and delegate its obligations under the Contract and/or interests therein to BMPA. C.The Contract provides that the $7,750,000 purchase price will be paid as follows: a $775,000 payment (including $77,500 earnest money previously paid) at the time of closing with the balance of $6,975,000 paid by a BMPA non-recourse carry-back note bearing 3.5% interest payable over 20 years with yearly payments of $490,768.51, secured by a deed of trust. D.The governing bodies of Boulder and BMPA have approved a Lease Purchase Agreement governing the above purchase of land, water and mineral rights. NOW, THEREFORE, in consideration of the covenants contained herein and other good and valuable considerations, the parties agree as follows: A.As to the land, mineral and water rights listed on the attached Exhibit A, Boulder hereby assigns to BMPA its rights and interests and delegates its obligations under the Contract and BMPA hereby assumes the assigned rights, interests and delegated obligations. B.Boulder and BMPA hereby agree to enter into the above-referenced Lease Purchase Agreement. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the day and year first above written. SIGNATURES ON FOLLOWING PAGE Attachment D - Assignment of Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 262 of 607 CITY OF BOULDER, a Colorado home rule city BY: ____________________________ Jane S. Brautigam, City Manager ATTEST: _____________________ City Clerk Approved as to Form ___________________________ City Attorney BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By______________________________ Suzanne Jones, President ATTEST: _________________________ Cheryl Pattelli, Secretary-Treasurer Attachment D - Assignment of Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 263 of 607 4836-1417-9693.2 Boulder, Colorado $6,975,000 CARRY-BACK NOTE THIS CARRY-BACK NOTE HAS BEEN PRIVATELY PLACED BY THE BOULDER MUNICIPAL PROPERTY AUTHORITY; ANY REGISTERED OWNER HEREOF, INCLUDING ANY TRANSFEREE, IS RESPONSIBLE FOR MAKING ITS OWN INVESTMENT DECISION, AND ANY SUCH REGISTERED OWNER IS NOT ENTITLED TO RELY ON THE AUTHORITY OR THE CITY OF BOULDER, COLORADO, FOR PURPOSES OF DISCLOSURE WITH RESPECT TO SAID REGISTERED OWNER’S DECISION IN PURCHASING THIS NOTE. BY ITS OWNERSHIP OF THIS NOTE, THE REGISTERED OWNER HEREOF ACCEPTS THE FOREGOING PROVISIONS. $6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property), Series 2018A FOR VALUE RECEIVED, The Boulder Municipal Property Authority (the “Authority”) promises to pay to Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott, in the manner and only from the sources hereinafter provided, the principal sum of six million nine hundred seventy-five thousand dollars ($6,975,000), together with interest on unpaid principal from the date hereof until paid, at the rate of 3.5% per annum, said principal and interest to be payable in 20 annual payments pursuant to the following schedule (said schedule to be conclusive with respect to the interest payments hereon notwithstanding the foregoing provisions of this Note), provided however, that should any payment date set forth in the Payment Schedule, below, not be a business day on which the Authority’s Paying Agent, which shall initially be U.S. Bank National Association (the “Paying Agent”), shall be open for business, then such payment shall be made on the succeeding business day that the Paying Agent is open for business. Such monthly payments shall first be applied to interest payable on this Note with the remainder applied to the payment of the outstanding principal. [Remainder of Page Intentionally Left Blank – Payment Schedule Follows] ATTACHMENT E - Carry Back Note Item 3M - Lippincott BMPA City Council Meeting Page 264 of 607 4836-1417-9693.2 Payment Schedule _____ of ______ Year Principal Amount Interest Amount Total Payment 2019 $246,643.51 $244,125.00 $490,768.51 2020 255,276.03 235,492.48 490,768.51 2021 264,210.69 226,557.82 490,768.51 2022 273,458.07 217,310.44 490,768.51 2023 283,029.10 207,739.41 490,768.51 2024 292,935.12 197,833.39 490,768.51 2025 303,187.85 187,580.66 490,768.51 2026 313,799.42 176,969.09 490,768.51 2027 324,782.40 165,986.11 490,768.51 2028 336,149.79 154,618.72 490,768.51 2029 347,915.03 142,853.48 490,768.51 2030 360,092.06 130,676.45 490,768.51 2031 372,695.28 118,073.23 490,768.51 2032 385,739.61 105,028.90 490,768.51 2033 399,240.50 91,528.01 490,768.51 2034 413,213.92 77,554.59 490,768.51 2035 427,676.40 63,092.11 490,768.51 2036 442,645.08 48,123.43 490,768.51 2037 458,137.66 32,630.85 490,768.51 2038 474,172.47 16,596.04 490,768.51 The principal of and interest on this Note are payable in lawful monies of the United States of America without deduction for collection charges. The principal of and interest on this Note are payable to the registered owner hereof by wire transfer according to the instructions provided by the person in whose name the Note is registered, or, if requested by the Authority, by wire transfer according to the instructions provided by the person in whose name this Note is registered, on the registration books of the Authority at the close of business on the day preceding such principal and interest payment date, whether or not a business day (the “Record Date”); provided, however, that the final payment of the principal of and interest hereon shall be made solely upon presentation and surrender of this Note at the office of the Authority, 1777 Broadway, Boulder, Colorado 80302. If the wiring instructions for the registered owner change during the course of the payment of this Note, it is the responsibility of the registered owner hereof to notify the Paying Agent and provide the Paying Agent with new wiring instructions. If such wire transfer is rejected, the Paying Agent shall hold such payment (without accruing additional interest) until it has been provided with new wire instructions from the registered owner hereof. If, due to the registered owner’s failure to provide the Paying Agent with proper wiring instructions, payment is received by a party other than the registered owner hereof, neither the Authority nor the Paying Agent shall be held responsible for such payment(s) to the registered owner hereof. ATTACHMENT E - Carry Back Note Item 3M - Lippincott BMPA City Council Meeting Page 265 of 607 4836-1417-9693.2 This Note is a note of the Authority denominated as “$6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property), Series 2018A” issued in the principal amount of six million nine hundred seventy-five thousand dollars ($6,975,000) (the “Note”). As provided in the resolution of the Authority authorizing this Note (the “Resolution”), this Note is issuable solely in the form of one fully registered note without coupons and in the denomination of six million nine hundred seventy-five thousand dollars ($6,975,000). This Note is issued to acquire certain open space property (the “Property”) to be leased to the City of Boulder, Colorado (the “City”). The Property so leased (the “Leased Property”) shall be leased pursuant to a Lease Purchase Agreement (the “Lease Agreement”). The Lease Agreement allows for the sublease of the Property to Jefferson County and for certain rights of cure by Jefferson County as provided in Section 13.5 of the Lease Agreement. For so long as the Jefferson County Sublease is in effect as provided in the Lease Agreement, then Jefferson County shall have a right to cure and pay the amounts due under this Note with the rental proceeds collectible under the Lease Agreement as permitted in the sublease to Jefferson County. This Note may be prepaid by the Authority at any time without penalty. The Authority may deem and treat the registered owner of this Note as the absolute owner hereof for all purposes (whether or not this Note shall be overdue), and any notice to the contrary shall not be binding upon the Authority. This Note is transferable by the registered owner hereof in person or by his attorney, duly authorized in writing, at the principal office of the Paying Agent designated above, but only in the manner, subject to the limitations and upon payment of the charges, provided in the Resolution. This Note may be transferred upon the registration books by delivery of this Note to the Paying Agent together with a written instrument or instruments of transfer in form and with guarantee of signature satisfactory to the Paying Agent, duly executed by the registered owner o f this Note or his or her attorney-in-fact or legal representative, containing written instructions as to the details of the transfer of the Note, along with the social security number or federal employer identification number of such transferee and wire instructions, if applicable, for principal and interest payments on the Note to such transferee executed by the transferee. In the event of the transfer of this Note, the Paying Agent shall enter the transfer of ownership in the registration books. The Au thority and the Paying Agent shall charge the registered owner of this Note for every such transfer an amount sufficient to reimburse the Authority and the Paying Agent for their reasonable fees and for any tax or other governmental charge required to be paid with respect to such transfer. The Authority may replace a lost, stolen or destroyed Note upon receiving indemnity satisfactory to the Authority from the registered owner thereof. EXCEPT TO THE EXTENT PAYABLE FROM NET PROCEEDS OF FORECLOSURE AND SALE OF THE LEASED PROPERTY PURSUANT TO A DEED OF TRUST DATED --- -[B]--- (THE “DEED OF TRUST”) FROM THE AUTHORITY TO THE PUBLIC TRUSTEE S OF BOULDER AND JEFFERSON COUNTIES, COLORADO, FOR THE BENEFIT OF THE REGISTERED OWNER HEREOF, THIS NOTE SHALL BE PAYABLE SOLE LY FROM RENTALS TO BE PAID BY THE CITY UNDER THE LEASE AGREEMENT OR FROM THE SUBLEASE PAYMENTS MADE BY THE COUNTY OF JEFFERSON, COLORADO (THE “COUNTY”) MADE PURSUANT TO THE SUBLEASE AGREEMENT DATED _______________ (THE “SUBLEASE”). ALL PAYMENT OBLIGATIONS OF THE CITY ATTACHMENT E - Carry Back Note Item 3M - Lippincott BMPA City Council Meeting Page 266 of 607 4836-1417-9693.2 UNDER THE LEASE AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE OBLIGATION OF THE CITY TO PAY RENTALS, SHALL ONLY BE MADE FROM THE CITY’S OPEN SPACE AND STREET FUND MAINTAINED UNDER SECTION 3-18-1, BOULDER REVISED CODE 1981. ALL PAYMENT OBLIGATIONS OF THE CITY ARE FROM YEAR TO YEAR ONLY, AND DO NOT CONSTITUTE A MANDATORY PAYMENT OBLIGATION OF THE CITY IN ANY FISCAL YEAR BEYOND A FISCAL YEAR IN WHICH THE LEASE AGREEMENT, AS ANNUALLY RENEWED, SHALL THEN BE IN EFFECT. THE LEASE AGREEMENT IS SUBJECT TO ANNUAL RENEWAL AND APPROPRIATION AT THE OPTION OF THE CITY AND SHALL BE TERMINATED UPON THE EVENT OF NONAPPROPRIATION BY THE CITY AND THE FAILURE OF THE COUNTY TO CURE THE NONAPPROPRIATION EVENT PURSUANT TO THE TERMS OF THE SUBLEASE AGREEMENT. ALL PAYMENT OBLIGATIONS FROM THE CITY UNDER THE LEASE AGREEMENT SHALL TERMINATE, AND THIS NOTE AND THE INTEREST HEREON SHALL BE PAYABLE SOLELY FROM MONIES AVAILABLE, IF ANY, FROM FORECLOSURE ON THE LEASED PROPERTY PURSUANT TO THE DEED OF TRUST. None of the Lease Agreement, this Note or the Deed of Trust constitute a general obligation or other indebtedness of the City within the meaning of any constitutional, statutory, or home rule charter debt provision or limitation. None of the Lease Agreement, this Note or the Deed of Trust of the Authority have directly or indirectly obligated the City to make any payments beyond those appropriated for any fiscal year in which the Lease Agreement shall then be in effect. The obligations of the Authority under the Resolution and the Deed of Trust shall be discharged as and to the extent provided in the Resolution upon deposit of cash and/or United States government securities with an escrow agent, in which case the registered owner of this Note shall promptly release the lien of the Deed of Trust and shall be secured solely as provided in the Resolution. Upon receiving written notice of a default from the registered owner hereof confirming that the City has defaulted on payment hereunder or otherwise nonappropriated for the applicable fiscal year and the County has failed to cure such failure or annual nonappropriation, then the Authority shall have 30 days to cure such default, whereupon if such default is not cured, then the entire principal amount hereof, together with interest hereon, shall, at the election of the registered owner hereof, become due and payable, but only from the sources hereinabove described. Failure to exercise this election or any other remedies upon a default shall not constitute a waiver of t hat right in the event of a subsequent or continuing default. The rights or remedies of the registered owner hereof as provided in this Note and the Deed of Trust shall be cumulative and concurrent and may be pursued singly, successively, or together against the Leased Property at the sole discretion of the registered owner hereof. The failure to exercise any such right or remedy shall in no event be construed as a waiver or release of said rights or remedies, or of the rights to exercise them at any later time. This Note may not be amended, modified, or changed, nor shall any waiver of any provision hereof be effective, except by an instrument in writing and signed by the party against whom enforcement of any waiver, amendment, change, modification or discharge is sought. ATTACHMENT E - Carry Back Note Item 3M - Lippincott BMPA City Council Meeting Page 267 of 607 4836-1417-9693.2 It is hereby certified and recited that all the requirements of law have been fully complied with by the proper Authority officers in the issuance of this Note, and that this Note was duly and lawfully authorized by the Resolution duly adopted and approved by the Board of Directors of the Authority prior to the issuance hereof. The registered owner of this Note, by acceptance hereof, acknowledges and agrees to be bound by all provisions of the Resolution relating hereto and the Sublease Agreement for cure rights by the County of any defaults by the City hereunder. This Note shall not be entitled to any benefit under the Resolution, or become valid or obligatory for any purpose until the Paying Agent, as registrar, shall have signed the certificate of authentication hereon. [Remainder of Page Intentionally Left Blank – Signature Page Follows] ATTACHMENT E - Carry Back Note Item 3M - Lippincott BMPA City Council Meeting Page 268 of 607 4836-1417-9693.2 IN WITNESS WHEREOF, the Board of Directors of the Authority has caused this Note to be executed with the signature of the President of the Authority and attested by the signature of its Secretary-Treasurer and has caused the seal of the Authority to be impressed or imprinted hereon. Date: [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer ATTACHMENT E - Carry Back Note Item 3M - Lippincott BMPA City Council Meeting Page 269 of 607 4836-1417-9693.2 CERTIFICATE OF AUTHENTICATION This Note is one of the Notes described in the within mentioned Resolution of the Authority. Date of Authentication: U.S. BANK NATIONAL ASSOCIATION, as Registrar By Authorized Officer ATTACHMENT E - Carry Back Note Item 3M - Lippincott BMPA City Council Meeting Page 270 of 607 4836-1417-9693.2 FORM OF ASSIGNMENT OF NOTE ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto (please print or type name and address of transferee) (Tax Identification or Social Security No. ) the within Note and all rights and title hereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Note on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Signature must be guaranteed by a member of a Medallion Signature Program. NOTE: PLEASE RETURN ORIGINAL NOTE WITH THIS ASSIGNMENT. The signature on this assignment must correspond with the name as it appears on the face of this original note. ATTACHMENT E - Carry Back Note Item 3M - Lippincott BMPA City Council Meeting Page 271 of 607 CARRY-BACK DEED OF TRUST (BOULDER COUNTY PROPERTY)1 THIS DEED OF TRUST (“Deed of Trust”) is made this __________, 2018, from THE BOULDER MUNICIPAL PROPERTY AUTHORITY, 1777 Broadway, Boulder, Colorado 80302, hereinafter referred to as “Grantor,” which designation shall include its successors in interest, to THE PUBLIC TRUSTEE of Boulder County, in the State of Colorado, hereinafter referred to as “Trustee,” for the benefit of Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott, as owner of the hereinafter-defined Carry-Back Note, or its registered assignees as their interest may appear; W I T N E S S E T H : WHEREAS, Grantor has executed its “$6,975,000.00 Lease Purchase Revenue Carry- Back Note (Lippincott Ranch Property), Series 2018,” dated __________, 2018 (together with any replacement thereof reflecting an assignee as holder, the “Carry-Back Note”), in the principal amount of SIX MILLIO N NINE HUNDRED SEVENTY-FIVE DOLLARS $6,975,000 with its final maturity being __________, 2039, payable to the order of Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott or registered assigns, (including registered owners holding a replacement Carry-Back Note) hereinafter referred to as “Lender,” whose principal office or address is at 36496 County Road 49, Eaton, Colorado 80615, in annual installments of principal and interest payable in connection with the schedule of total payments on the Carry-Back Note secured hereby as set forth on Exhibit A hereto. Capitalized terms used and not defined herein shall have the meanings given such terms in the Carry-Back Note or if not defined therein, then in the Lease Agreement; NOW, THEREFORE, Grantor, for the purpose of securing payments of the principal and interest and all other sums due under the terms and conditions of said Carry-Back Note and this Deed of Trust, and in consideration of these premises, does hereby grant, bargain, and sell and convey unto the Trustee for the benefit of the Lender, in trust and with the power of sale, all of its right, title and interest in the property in Boulder County, Colorado, described in Exhibit B hereto, ( the “Land”); TOGETHER with all building materials and equipment now or hereafter delivered to said premises and intended to be installed therein, and all buildings, improvements, fixtures or appurtenances now or hereafter erected thereon, including, without limiting the generality thereof, all apparatus, equipment or fixtures, whether in single units or centrally controlled, used to supply heat, gas, air conditioning, water, light, power, refrigeration, ventilation or other services, and screens, venetian blinds, window shades, storm doors and windows, wall-to-wall carpeting, attached floor coverings, stoves and water heaters, and including all accessions, additions and replacements (all of which are declared to be a part of said Land whether physically attached thereto or not); and 1 This Deed of Trust also constitutes a financing statement covering goods which are or are to become fixtures related to the above-described real property. Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 272 of 607 TOGETHER with all leases, rents, issues and profits of said Land including the Lease and Sublease and all rents due and payable thereunder; and TOGETHER with any surface and subsurface water and water rights, ditch and ditch rights, ponds and pond rights, springs and spring rights used upon or in connection therewith and including all wells, well rights (decreed or not), water stock, stock rights; and TOGETHER with all minerals, mineral rights, oil and gas rights and mining interests, if any, of any type and nature; and TOGETHER with all rights of access, easements and easement rights; and TOGETHER with insurance and insurance proceeds relating to any of the foregoing and all development rights, hereditaments and appurtenances or nature. TO HAVE AND TO HOLD the above-described Land and pledged interests, together with all and singular rights, privileges, hereditaments and appurtenances in anywise appertaining or belonging thereto (collectively, the “Property”); IN TRUST NEVERTHELESS, that in case of an y Event of Default hereunder by Grantor or its successors in interest, according to the terms of said Carry-Back Note or this Deed of Trust, the Lender may file the Carry-Back Note and notice with Trustee declaring such default and its election and demand that said property be advertised for sale and sold in accordance with the statutes of the State of Colorado in such cases made and provided; and thereupon said Trustee (the Public Trustee) shall sell and dispose of the Property and all the right, title, and interest of said Grantor, its successors or assigns therein, at public auction at the principal entrance of the Court House in the above designated County of Colorado wherein said property is located, or at such place authorized by law as specified in the notice of sale, for the highest and best price the same will bring in cash, four weeks public notice by advertisement, weekly, in some newspaper of general circulation published in said County having been previously given, and copies of said notice having been mailed in accordance with the said statutes of the State of Colorado. Any such foreclosure by the Public Trustee shall comply with the then applicable provisions of the Colorado Revised Statutes governing pubic trustee foreclosures in the State of Colorado notwithstanding any other provisions hereof. Grantor warrants title to and possession of the encumbered Property in Grantor and hereby absolutely waives and releases all exemptions now vested or hereafter acquired under present or future statutes of the State of Colorado, and Grantor further warrants that said Property is free and clear of all liens and encumbrances, except the lien of general taxes, if any, and those encumbrances described in Exhibit C hereto. IN ORDER TO PROTECT MORE FULLY THE SECURITY OF THIS DEED OF TRUST, GRANTOR FURTHER COVENANTS AND AGREES AS FOLLOWS: 1.To pay promptly all and singular the principal and interest and all other sums of money payable by virtue of said Carry-Back Note and this Deed of Trust, but only from payments received from the City of Boulder, Colorado (the “City”), pursuant to the hereinafter defined Lease Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 273 of 607 Agreement, on the days respectively that the same severally become due and to perform each and every stipulation, agreement, and condition in said Carry-Back Note and this Deed of Trust. 2. To pay promptly all taxes, assessments, levies, insurance premiums, and all other liabilities, obligations, and encumbrances as they become due; provided that in the event the Lender shall be or become liable for or obligated to pay any tax or assessment whatever under any present or future governmental law or levy for and on account of the Carry-Back Note or this Deed of Trust securing the same, to pay the Lender at least ten days prior to the due date of said tax or assessments, the full amount thereof. 3. Not to sell or lease the Property herein described without the written consent of the Lender, other than pursuant to and as permitted under the Lease Purchase Agreement dated _____________________, 2018 (the “Lease Agreement”), between Grantor and the City , including the right to sublease the Property to Jefferson County, Colorado pursuant to Section 13.2(a) of the Lease Agreement (the “Sublease”) and the right sublease the Property for agricultural uses, subject to Section 11.6 of the Lease Agreement and Section 11.6 of the Sublease. 4. Except as provided in 3 above, not to alienate or encumber said Property to the prejudice of the Lender, or commit, permit, or suffer any waste, impairment, or depreciation of said property, or any of its appurtenances, and regardless of natural depreciation, to keep said property and the improvements thereon, if any, at all times in good repair. The Lender shall have the right, at any and all reasonable times, to inspect the Property. 5. Not to use the Property in violation of any covenant as to uses or reservation to which title to the Property herein conveyed is subject, or in violation of any municipal ordinance or of a state or federal statute. In the event improvements are made on the Property, all plans, specifications, and construction shall comply with all ordinances and regulations or orders promulgated by lawful authority and upon completion conform to rules of fire underwriters. 6. That if this Deed of Trust is foreclosed, a reasonable sum shall be allowed as attorney’s fees. In case of the commencement of collection effort or of a foreclosure by the placement of the Carry-Back Note and this Deed of Trust into the possession of an attorney for such purpose, Grantor will pay upon demand a reasonable attorney’s fee even though a foreclosure proceeding does not follow, and such fee shall become so much additional indebtedness secured by this Deed of Trust. 7. That in the event of foreclosure of this Deed of Trust, all right, title, and interest of Grantor in and to any insurance policies then in force shall pass to the purchaser or grantee receiving a trustee’s deed as a result of such foreclosure sale. 8. That time is of the essence hereof, and if default be made in making any payment or reimbursement according to the terms of the Carry-Back Note or this Deed of Trust, or any part thereof, or if there is a breach in any of the covenants and agreements therein or herein, or if proceedings are instituted to enforce any other lien upon said property, or upon the filing of a proceeding in bankruptcy by or against Grantor, or if Grantor shall abandon any of said Property, and if such events are not cured pursuant to the terms of the Lease or Sublease (such uncured event, an “Event of Default”) then in any of such Event of Default and regardless of any other remedy Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 274 of 607 available, the whole of the indebtedness hereby secured and the interest thereon may at once, at the option of and upon notice by the legal holder thereof, become due and payable, and this Deed of Trust may be foreclosed in the manner provided for herein and with the same effect as if said indebtedness had matured. 9. That in case of any Event of Default, the Lender shall have the right of foreclosure hereunder, and thereupon the Lender shall at once become entitled to possession, use, and enjoyment of the Property aforesaid, and to the rents, issues, and profits thereof, from the accruing of such right and during the pendency of foreclosure proceedings, if any there be; and as additional security and in confirmation thereof, Grantor hereby assigns and sets over to the Lender all such rents, issues, and profits due or to become due under the Lease or Sublease, together with the right of possession and the right to rent the Property as the Lender may deem proper, without notice but upon the application to a Court to have a receiver appointed therefor, and together with the right to apply net rentals after expenses to the indebtedness due. Upon receipt of a written request from the Lender, all tenants of said premises under the Lease or Sublease are hereby directed to pay promptly all rent due thereunder as it falls due directly to the Lender or manager designated by the Lender. Such possession, use, enjoyment, rents, issues, and profits shall at once be delivered to the Lender or the holder of the Carry-Back Note on request, and on refusal, the delivery of such possession may be enforced by any appropriate civil suit or proceeding, and the Lender or the holder of the Carry-Back Note shall be entitled to a receiver for said property, and of the rents, issues, and profits thereof, including the time covered by foreclosure proceedings, and shall be entitled thereto as a matter of right without regard to the solvency or insolvency of Grantor or of the then owner of said property and without regard to the value of the property. Such receiver may be appointed by any Court of competent jurisdiction upon ex parte application and without notice. Notice, and any such application and notice being hereby expressly waived and consented to by Grantor for and on its own behalf and on behalf of its heirs, assigns, and legal representatives, and all persons claiming by, through, or under it, and all rents, issues and profits, income and revenue of said Property shall be applied by such receiver according to law and the orders and directions of the Court. 10. That each right, power, and remedy herein conferred is cumulative of every other right, power, and remedy of the Lender whether herein or by law or by the Carry-Back Note conferred and may be enforced concurrently therewith; provided that taking of possession and the foreclosure sale of the premise shall operate to release Grantor in whole of any and all amounts remaining due on the Carry-Back Note, it being the intent that the Carry-Back Note and this Deed of Trust are made without recourse to Grantor for any deficiency amounts following for eclosure. That no waiver, express or implied, of the performance of any obligation, agreement, or covenant hereof shall be deemed or taken to be a waiver of any other or succeeding obligation, agreement, or covenant of the Carry-Back Note or of this Deed of Trust; that no payment or advancement by the Lender hereunder on behalf of the Grantor shall be deemed a waiver of the breach occurring or the right to elect to foreclose this Deed of Trust; and the indulgence of the Lender to Grantor in not exercising its option to declare the indebtedness to be due and payable upon the happening of any of the events or conditions herein described shall not, even though such indulgence be repeated and extended, be construed as a waiver of the right of the Lender to exercise such option at any time thereafter and without notice to Grantor. Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 275 of 607 11. That it is hereby acknowledged by Grantor that the Carry-Back Note and this Deed of Trust may be assigned by Lender. 12. That all of the covenants and agreements herein contained shall run with the Property and shall extend to and be binding upon the heirs, executors, legal representatives, successors, and assigns (whether voluntary or involuntary by operation of law) of the Lender. Whenever used, the singular shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. 13. That all payment obligations of the Grantor under the Carry-Back Note and this Deed of Trust are special, limited revenue obligations of Grantor, payable solely from amounts received by Grantor from the City pursuant to the Lease or the Sublease or realized by foreclosure under this Deed of Trust; and that the obligations of the City under the Lease Agreement (and the obligations of the County under the Sublease Agreement) are subject to renewal of the Agreement each year by the City (or County under the Sublease) at its discretion, and the City’s obligations are subject to the City Council appropriation each year from the City’s Open Space and Street Fund maintained under Section 3-2-39, Boulder Revised Code 1981. 14. This Deed of Trust shall be released upon payment in full of the Carry-Back Note. A release of this Deed of Trust shall release any assignment of rents given as additional security. The Public Trustee may, upon production of the Carry-Back Note secured hereby duly canceled, release this Deed of Trust without further showing as to additional advances and without liability for so doing, and such release shall constitute a release of the lien of any such advances. When and if any release is required, Grantor shall pay the expense thereof. [The remainder of this page is intentionally blank.] Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 276 of 607 IN WITNESS WHEREOF, Grantor has hereunto set its hands the day and year first above written. [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer STATE OF COLORADO ) ) ss. COUNTY OF BOULDER ) The foregoing instrument was acknowledged before me this ______ day of ____________, ______, by Suzanne Jones and Cheryl Pattelli, as President and Secretary-Treasurer, respectively, of The Boulder Municipal Property Authority, a Colorado non-profit corporation. WITNESS my hand and official seal. [SEAL] Notary Public Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 277 of 607 EXHIBIT A PAYMENT SCHEDULE Year Principal Amount Interest Amount Total Payment 2019 $246,643.51 $244,125.00 $490,768.51 2020 255,276.03 235,492.48 490,768.51 2021 264,210.69 226,557.82 490,768.51 2022 273,458.07 217,310.44 490,768.51 2023 283,029.10 207,739.41 490,768.51 2024 292,935.12 197,833.39 490,768.51 2025 303,187.85 187,580.66 490,768.51 2026 313,799.42 176,969.09 490,768.51 2027 324,782.40 165,986.11 490,768.51 2028 336,149.79 154,618.72 490,768.51 2029 347,915.03 142,853.48 490,768.51 2030 360,092.06 130,676.45 490,768.51 2031 372,695.28 118,073.23 490,768.51 2032 385,739.61 105,028.90 490,768.51 2033 399,240.50 91,528.01 490,768.51 2034 413,213.92 77,554.59 490,768.51 2035 427,676.40 63,092.11 490,768.51 2036 442,645.08 48,123.43 490,768.51 2037 458,137.66 32,630.85 490,768.51 2038 474,172.47 16,596.04 490,768.51 Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 278 of 607 EXHIBIT B LEGAL DESCRIPTION OF ENCUMBERED PROPERTY The Southeast ¼ of the Southeast ¼ of Section 36, Township 1 South, Range 71 West of the 6th P.M., County of Boulder, State of Colorado. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not limited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 279 of 607 EXHIBIT C SCHEDULE OF CERTAIN PERMITTED ENCUMBRANCES [To be taken from the Title Policy] Attachment F-1 Deed of Trust Boulder Item 3M - Lippincott BMPA City Council Meeting Page 280 of 607 CARRY-BACK DEED OF TRUST (JEFFERSON COUNTY PROPERTY)1 THIS DEED OF TRUST (“Deed of Trust”) is made this __________, 2018, from THE BOULDER MUNICIPAL PROPERTY AUTHORITY, 1777 Broadway, Boulder, Colorado 80302, hereinafter referred to as “Grantor,” which designation shall include its successors in interest, to THE PUBLIC TRUSTEE of Jefferson County, in the State of Colorado, hereinafter referred to as “Trustee,” for the benefit of Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott, as owner of the hereinafter-defined Carry-Back Note, or its registered assignees as their interest may appear; W I T N E S S E T H : WHEREAS, Grantor has executed its “$6,975,000.00 Lease Purchase Revenue Carry- Back Note (Lippincott Ranch Property), Series 2018,” dated __________, 2018 (together with any replacement thereof reflecting an assignee as holder, the “Carry-Back Note”), in the principal amount of SIX MILLION NINE HUNDRED SEVENTY-FIVE DOLLARS $6,975,000 with its final maturity being __________, 2039, payable to the order of Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott or registered assigns, (including registered owners holding a replacement Carry-Back Note) hereinafter referred to as “Lender,” whose principal office or address is at 36496 County Road 49, Eaton, Colorado 80615, in annual installments of principal and interest payable in connection with the schedule of total payments on the Carry-Back Note secured hereby as set forth on Exhibit A hereto. Capitalized terms used and not defined herein shall have the meanings given such terms in the Carry-Back Note or if not defined therein, then in the Lease Agreement; NOW, THEREFORE, Grantor, for the purpose of securing payments of the principal and interest and all other sums due under the terms and conditions of said Carry-Back Note and this Deed of Trust, and in consideration of these premises, does hereby grant, bargain, and sell and convey unto the Trustee for the benefit of the Lender, in trust and with the power of sale, all of its right, title and interest in the property in Jefferson County, Colorado, described in Exhibit B hereto, ( the “Land”); TOGETHER with all building materials and equipment now or hereafter delivered to said premises and intended to be installed therein, and all buildings, improvements, fixtures or appurtenances now or hereafter erected thereon, including, without limiting the generality thereof, all apparatus, equipment or fixtures, whether in single units or centrally controlled, used to supply heat, gas, air conditioning, water, light, power, refrigeration, ventilation or other services, and screens, venetian blinds, window shades, storm doors and windows, wall-to-wall carpeting, attached floor coverings, stoves and water heaters, and including all accessions, additions and replacements (all of which are declared to be a part of said Land whether physically attached thereto or not); and 1 This Deed of Trust also constitutes a financing statement covering goods which are or are to become fixtures related to the above-described real property. Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 281 of 607 TOGETHER with all leases, rents, issues and profits of said Land including the Lease and Sublease and all rents due and payable thereunder; and TOGETHER with any surface and subsurface water and water rights, ditch and ditch rights, ponds and pond rights, springs and spring rights used upon or in connection therewith and including all wells, well rights (decreed or not), water stock, stock rights; and TOGETHER with all minerals, mineral rights, oil and gas rights and mining interests, if any, of any type and nature; and TOGETHER with all rights of access, easements and easement rights; and TOGETHER with insurance and insurance proceeds relating to any of the foregoing and all development rights, hereditaments and appurtenances or nature. TO HAVE AND TO HOLD the above-described Land and pledged interests, together with all and singular rights, privileges, hereditaments and appurtenances in anywise appertaining or belonging thereto (collectively, the “Property”); IN TRUST NEVERTHELESS, that in case of any Event of Default hereunder by Grantor or its successors in interest, according to the terms of said Carry-Back Note or this Deed of Trust, the Lender may file the Carry-Back Note and notice with Trustee declaring such default and its election and demand that said property be advertised for sale and sold in accordance with the statutes of the State of Colorado in such cases made and provided; and thereupon said Trustee (the Public Trustee) shall sell and dispose of the Property and all the right, title, and interest of said Grantor, its successors or assigns therein, at public auction at the principal entrance of the Court House in the above designated County of Colorado wherein said property is located, or at such place authorized by law as specified in the notice of sale, for the highest and best price the same will bring in cash, four weeks public notice by advertisement, weekly, in some newspaper of general circulation published in said County having been previously given, and copies of said notice having been mailed in accordance with the said statutes of the State of Colorado. Any such foreclosure by the Public Trustee shall comply with the then applicable provisions of the Colorado Revised Statutes governing pubic trustee foreclosures in the State of Colorado notwithstanding any other provisions hereof. Grantor warrants title to and possession of the encumbered Property in Grantor and hereby absolutely waives and releases all exemptions now vested or hereafter acquired under present or future statutes of the State of Colorado, and Grantor further warrants that said Property is free and clear of all liens and encumbrances, except the lien of general taxes, if any, and those encumbrances described in Exhibit C hereto. IN ORDER TO PROTECT MORE FULLY THE SECURITY OF THIS DEED OF TRUST, GRANTOR FURTHER COVENANTS AND AGREES AS FOLLOWS: 1. To pay promptly all and singular the principal and interest and all other sums of money payable by virtue of said Carry-Back Note and this Deed of Trust, but only from payments received from the City of Boulder, Colorado (the “City”), pursuant to the hereinafter defined Lease Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 282 of 607 Agreement, on the days respectively that the same severally become due and to perform each and every stipulation, agreement, and condition in said Carry-Back Note and this Deed of Trust. 2. To pay promptly all taxes, assessments, levies, insurance premiums, and all other liabilities, obligations, and encumbrances as they become due; provided that in the event the Lender shall be or become liable for or obligated to pay any tax or assessment whatever under any present or future governmental law or levy for and on account of the Carry-Back Note or this Deed of Trust securing the same, to pay the Lender at least ten days prior to the due date of said tax or assessments, the full amount thereof. 3. Not to sell or lease the Property herein described without the written consent of the Lender, other than pursuant to and as permitted under the Lease Purchase Agreement dated _____________________, 2018 (the “Lease Agreement”), between Grantor and the City , including the right to sublease the Property to Jefferson County, Colorado pursuant to Section 13.2(a) of the Lease Agreement (the “Sublease”) and the right sublease the Property for agricultural uses, subject to Section 11.6 of the Lease Agreement and Section 11.6 of the Sublease. 4. Except as provided in 3 above, not to alienate or encumber said Property to the prejudice of the Lender, or commit, permit, or suffer any waste, impairment, or depreciation of said property, or any of its appurtenances, and regardless of natural depreciation, to keep said property and the improvements thereon, if any, at all times in good repair. The Lender shall have the right, at any and all reasonable times, to inspect the Property. 5. Not to use the Property in violation of any covenant as to uses or reservation to which title to the Property herein conveyed is subject, or in violation of any municipal ordinance or of a state or federal statute. In the event improvements are made on the Property, all plans, specifications, and construction shall comply with all ordinances and regulations or orders promulgated by lawful authority and upon completion conform to rules of fire underwriters. 6. That if this Deed of Trust is foreclosed, a reasonable sum shall be allowed as attorney’s fees. In case of the commencement of collection effort or of a foreclosure by the placement of the Carry-Back Note and this Deed of Trust into the possession of an attorney for such purpose, Grantor will pay upon demand a reasonable attorney’s fee even though a foreclosure proceeding does not follow, and such fee shall become so much additional indebtedness secured by this Deed of Trust. 7. That in the event of foreclosure of this Deed of Trust, all right, title, and interest of Grantor in and to any insurance policies then in force shall pass to the purchaser or grantee receiving a trustee’s deed as a result of such foreclosure sale. 8. That time is of the essence hereof, and if default be made in making any payment or reimbursement according to the terms of the Carry-Back Note or this Deed of Trust, or any part thereof, or if there is a breach in any of the covenants and agreements therein or herein, or if proceedings are instituted to enforce any other lien upon said property, or upon the filing of a proceeding in bankruptcy by or against Grantor, or if Grantor shall abandon any of said Property, and if such events are not cured pursuant to the terms of the Lease or Sublease (such uncured event, an “Event of Default”) then in any of such Event of Default and regardless of any other remedy Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 283 of 607 available, the whole of the indebtedness hereby secured and the interest thereon may at once, at the option of and upon notice by the legal holder thereof, become due and payable, and this Deed of Trust may be foreclosed in the manner provided for herein and with the same effect as if said indebtedness had matured. 9. That in case of any Event of Default, the Lender shall have the right of foreclosure hereunder, and thereupon the Lender shall at once become entitled to possession, use, and enjoyment of the Property aforesaid, and to the rents, issues, and profits thereof, from the accruing of such right and during the pendency of foreclosure proceedings, if any there be; and as additional security and in confirmation thereof, Grantor hereby assigns and sets over to the Lender all such rents, issues, and profits due or to become due under the Lease or Sublease, together with the right of possession and the right to rent the Property as the Lender may deem proper, without notice but upon the application to a Court to have a receiver appointed therefor, and together with the right to apply net rentals after expenses to the indebtedness due. Upon receipt of a written request from the Lender, all tenants of said premises under the Lease or Sublease are hereby directed to pay promptly all rent due thereunder as it falls due directly to the Lender or manager designated by the Lender. Such possession, use, enjoyment, rents, issues, and profits shall at once be delivered to the Lender or the holder of the Carry-Back Note on request, and on refusal, the delivery of such possession may be enforced by any appropriate civil suit or proceeding, and the Lender or the holder of the Carry-Back Note shall be entitled to a receiver for said property, and of the rents, issues, and profits thereof, including the time covered by foreclosure proceedings, and shall be entitled thereto as a matter of right without regard to the solvency or insolvency of Grantor or of the then owner of said property and without regard to the value of the property. Such receiver may be appointed by any Court of competent jurisdiction upon ex parte application and without notice. Notice, and any such application and notice being hereby expressly waived and consented to by Grantor for and on its own behalf and on behalf of its heirs, assigns, and legal representatives, and all persons claiming by, through, or under it, and all rents, issues and profits, income and revenue of said Property shall be applied by such receiver according to law and the orders and directions of the Court. 10. That each right, power, and remedy herein conferred is cumulative of every other right, power, and remedy of the Lender whether herein or by law or by the Carry-Back Note conferred and may be enforced concurrently therewith; provided that taking of possession and the foreclosure sale of the premise shall operate to release Grantor in whole of any and all amounts remaining due on the Carry-Back Note, it being the intent that the Carry-Back Note and this Deed of Trust are made without recourse to Grantor for any deficiency amounts following foreclo sure. That no waiver, express or implied, of the performance of any obligation, agreement, or covenant hereof shall be deemed or taken to be a waiver of any other or succeeding obligation, agreement, or covenant of the Carry-Back Note or of this Deed of Trust; that no payment or advancement by the Lender hereunder on behalf of the Grantor shall be deemed a waiver of the breach occurring or the right to elect to foreclose this Deed of Trust; and the indulgence of the Lender to Grantor in not exercising its option to declare the indebtedness to be due and payable upon the happening of any of the events or conditions herein described shall not, even though such indulgence be repeated and extended, be construed as a waiver of the right of the Lender to exercise such option at any time thereafter and without notice to Grantor. Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 284 of 607 11. That it is hereby acknowledged by Grantor that the Carry-Back Note and this Deed of Trust may be assigned by Lender. 12. That all of the covenants and agreements herein contained shall run with the Property and shall extend to and be binding upon the heirs, executors, legal representatives, successors, and assigns (whether voluntary or involuntary by operation of law) of the Lender. Whenever used, the singular shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. 13. That all payment obligations of the Grantor under the Carry-Back Note and this Deed of Trust are special, limited revenue obligations of Grantor, payable solely from amounts received by Grantor from the City pursuant to the Lease or the Sublease or realized by foreclosure under this Deed of Trust; and that the obligations of the City under the Lease Agreement (and the obligations of the County under the Sublease Agreement) are subject to renewal of the Agreement each year by the City (or County under the Sublease) at its discretion, and the City’s obligations are subject to the City Council appropriation each year from the City’s Open Space and Street Fund maintained under Section 3-2-39, Boulder Revised Code 1981. 14. This Deed of Trust shall be released upon payment in full of the Carry-Back Note. A release of this Deed of Trust shall release any assignment of rents given as additional security. The Public Trustee may, upon production of the Carry-Back Note secured hereby duly canceled, release this Deed of Trust without further showing as to additional advances and without liability for so doing, and such release shall constitute a release of the li en of any such advances. When and if any release is required, Grantor shall pay the expense thereof. [The remainder of this page is intentionally blank.] Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 285 of 607 IN WITNESS WHEREOF, Grantor has hereunto set its hands the day and year first above written. [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer STATE OF COLORADO ) ) ss. COUNTY OF BOULDER ) The foregoing instrument was acknowledged before me this ______ day of ____________, ______, by Suzanne Jones and Cheryl Pattelli, as President and Secretary-Treasurer, respectively, of The Boulder Municipal Property Authority, a Colorado non-profit corporation. WITNESS my hand and official seal. [SEAL] Notary Public Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 286 of 607 EXHIBIT A PAYMENT SCHEDULE Year Principal Amount Interest Amount Total Payment 2019 $246,643.51 $244,125.00 $490,768.51 2020 255,276.03 235,492.48 490,768.51 2021 264,210.69 226,557.82 490,768.51 2022 273,458.07 217,310.44 490,768.51 2023 283,029.10 207,739.41 490,768.51 2024 292,935.12 197,833.39 490,768.51 2025 303,187.85 187,580.66 490,768.51 2026 313,799.42 176,969.09 490,768.51 2027 324,782.40 165,986.11 490,768.51 2028 336,149.79 154,618.72 490,768.51 2029 347,915.03 142,853.48 490,768.51 2030 360,092.06 130,676.45 490,768.51 2031 372,695.28 118,073.23 490,768.51 2032 385,739.61 105,028.90 490,768.51 2033 399,240.50 91,528.01 490,768.51 2034 413,213.92 77,554.59 490,768.51 2035 427,676.40 63,092.11 490,768.51 2036 442,645.08 48,123.43 490,768.51 2037 458,137.66 32,630.85 490,768.51 2038 474,172.47 16,596.04 490,768.51 Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 287 of 607 EXHIBIT B LEGAL DESCRIPTION OF ENCUMBERED PROPERTY Parcel 1: That part of the Northeast ¼ lying West of and adjoining the West line of the Denver & Salt Lake Rail Road right-of-way as described in Book 126 at Page 113, Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado. Parcel 2: The Northeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except so much thereof as lies West of the East line of railroad right of way as shown by deed recorded in Book 126 at Page 113, Jefferson County, Colorado records. Parcel 3: The South ½ of the South ½ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado and the Northwest ¼ of the Southwest ¼ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado; and The Southeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except that portion of said Section 1 conveyed to The Denver Northwestern and Pacific Railway Company by the Quit Claim Deed recorded January 19, 1903 in Book 121 at Page 180, of the Jefferson County, Colorado records, and Except those portions of said Sections 1 and 6 conveyed to Katherine T. O’Connor by the Warranty Deed recorded October 26, 193 in Book 347 at Page 159, of the Jefferson County, Colorado records. Parcel 4: A non-exclusive easement for ingress and egress purposes over and across the Northwest ¼ of Section 7, Township 2 South, Range 70 West of the 6th P.M., Jefferson County, Colorado, said easement being over an existing access road and being 20 feet on each side of the following described centerline: Beginning at a point on the North line of said Northwest ¼ of Section 7, from which point the Northwest corner of Section 7 bears North 88°46’26” West, a distance of 784.09 feet; thence along said centerline the following courses and distances: South 59°43’29” East, a distance of 5.41 feet to a point of curve; thence along a curve to the left having a radius of 143.37 feet, a central angle of 19°47’00”, an arc distance of 49.50 feet to a point of tangency; thence South 79°30’29” East, a distance of 155.12 feet to a point of curve; thence along a curve to the right having a radius of 316.01 feet, a central angle of 10°50’45”, an arc distance of 59.82 feet to a point of tangency; Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 288 of 607 thence South 68°39’43” East, a distance of 111.37 feet to a point of curve; thence along a curve to the right having a radius of 227.37 feet, a central angle of 19°57’19”, an arc distance of 79.19 feet to a point of tangency; thence South 48°42’24” East, a distance of 238.34 feet to a point of curve; thence along a curve to the left having a radius of 401.68 feet, a central angle of 16°59’28”, an arc distance of 119.12 feet to a point of tangency; thence South 65°41’53” East, a distance of 240.47 feet to a point of curve; thence along a curve to the right having a radius of 102.46 feet, a central angle of 60°42’17”, an arc distance of 108.56 feet to a point of tangency, said point being on the existing centerline of a road deeded to Jefferson County on August 6, 1935, by deed recorded in Book 374 at Page 140, and from which point the Northwest corner of Sectio n 7 bears North 72°14’59” West, a distance of 1862.34 feet. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not limited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 289 of 607 Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 290 of 607 EXHIBIT C SCHEDULE OF CERTAIN PERMITTED ENCUMBRANCES [To be taken from the Title Policy] Attachment F-2 Deed of Trust Jefferson Item 3M - Lippincott BMPA City Council Meeting Page 291 of 607 LEASE PURCHASE AGREEMENT by and between THE BOULDER MUNICIPAL PROPERTY AUTHORITY, A COLORADO NONPROFIT CORPORATION, as Lessor and CITY OF BOULDER, COLORADO, A POLITICAL SUBDIVISION DULY ORGANIZED AND EXISTING UNDER THE CONSTITUTION AND LAWS OF THE STATE OF COLORADO AND ITS HOME RULE CHARTER, as Lessee [Closing Date] Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 292 of 607 (This Table of Contents is not a part of this Lease Purchase Agreement and is only for convenience of reference.) ARTICLE I DEFINITIONS ............................................................................................................................... 2 ARTICLE II REPRESENTATIONS, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants, and Warranties of the City ................................. 4 Section 2.2. Representations, Covenants, and Warranties of Lessor ................................... 4 ARTICLE III DEMISING CLAUSE ................................................................................................................... 6 ARTICLE IV LEASE TERM Section 4.1. Commencement of Lease Term; Renewals ..................................................... 6 Section 4.2. Termination of Lease Term ............................................................................. 7 ARTICLE V ENJOYMENT OF LEASED PROPERTY .................................................................................... 7 ARTICLE VI PAYMENTS BY THE CITY Section 6.1. Payments To Constitute Currently Budgeted Expenditures of the City .......... 8 Section 6.2. Base Rentals ..................................................................................................... 8 Section 6.3. Disposition of Base Rentals ............................................................................. 8 Section 6.4. Manner of Payment .......................................................................................... 8 Section 6.5. Expression of the City’s Need for the Leased Property: Determinations as to Fair Market Value and Fair Purchase Price ................... 9 Section 6.6. Nonappropriation ............................................................................................. 9 Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 293 of 607 ARTICLE VII ACQUISITION OF THE LEASED PROPERTY ....................................................................... 10 ARTICLE VIII TITLE TO THE LEASED PROPERTY LIMITATIONS ON ENCUMBRANCES Section 8.1. Title to the Leased Property ........................................................................... 10 Section 8.2. No Encumbrance, Mortgage, or Pledge of Leased Property ......................... 10 ARTICLE IX MAINTENANCE, TAXES, INSURANCE, AND OTHER CHARGES Section 9.1. Maintenance of the Leased Property by the City ........................................... 10 Section 9.2. Taxes, Other Governmental Charges, and Utility Charges............................ 10 Section 9.3. Provisions Regarding Casualty, Public Liability, and Property Damage Insurance ........................................................................................................ 11 ARTICLE X CONDEMNATION ..................................................................................................................... 11 ARTICLE XI DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 11.1. Disclaimer of Warranties ............................................................................... 11 Section 11.2. Further Assurances and Corrective Instruments ............................................ 12 Section 11.3. Lessor and City Representatives .................................................................... 12 Section 11.4. Compliance with Requirements ..................................................................... 12 Section 11.5. City Acknowledgment of Note ...................................................................... 12 Section 11.6. Tax Covenants ............................................................................................... 12 ARTICLE XII CONVEYANCE OF THE LEASED PROPERTY Section 12.1. Conveyance of the Leased Property .............................................................. 12 Section 12.2. Manner of Conveyance .................................................................................. 13 ARTICLE XIII PLEDGE, SUBLEASING, INDEMNIFICATION, MORTGAGING, AND SELLING Section 13.1. Pledge ............................................................................................................. 13 Section 13.2. Assignment and Subleasing by the City ........................................................ 13 Section 13.3. No Negligence ............................................................................................... 14 Section 13.4. Restriction on Mortgage or Sale of Leased Property ..................................... 14 Section 13.5. Right to Cure by Sublessee ............................................................................ 14 Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 294 of 607 ARTICLE XIV EVENTS OF DEFAULT AND REMEDIES Section 14.1. Events of Default Defined ............................................................................. 14 Section 14.2. Remedies on Default ...................................................................................... 15 Section 14.3. Limitations on Remedies ............................................................................... 16 Section 14.4. No Remedy Exclusive.................................................................................... 16 Section 14.5. Waivers .......................................................................................................... 16 Section 14.6. Agreement To Pay Attorneys’ Fees and Expenses ........................................ 16 Section 14.7. Waiver of Appraisement, Valuation, Stay, Extension, and Redemption Laws ............................................................................................................... 16 ARTICLE XV MISCELLANEOUS Section 15.1. Notices ........................................................................................................... 17 Section 15.2. Binding Effect ................................................................................................ 17 Section 15.3. Amendments, Changes, and Modifications ................................................... 17 Section 15.4. Net Lease ....................................................................................................... 17 Section 15.5. Payments Due on Holidays ............................................................................ 17 Section 15.6. Severability .................................................................................................... 17 Section 15.7. Execution in Counterparts.............................................................................. 17 Section 15.8. Applicable Law .............................................................................................. 18 Section 15.9. Captions ......................................................................................................... 18 EXHIBIT A LEGAL DESCRIPTION........................................................................................... 1 EXHIBIT B SCHEDULE OF BASE RENTALS .......................................................................... 1 EXHIBIT C ENCUMBRANCES .................................................................................................. 1 Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 295 of 607 LEASE PURCHASE AGREEMENT THIS LEASE PURCHASE AGREEMENT, dated __________, together with any amendments hereto made in accordance herewith (this “Lease”), entered into by and between THE BOULDER MUNICIPAL PROPERTY AUTHORITY (the “Lessor”), as the lessor hereunder, a non-profit corporation duly organized, existing, and in good standing under the laws of the State of Colorado, and the CITY OF BOULDER, COLORADO (the “City”), as lessee hereunder, a political subdivision duly organized and existing under the Constitution and laws of the State of Colorado and the home rule charter of the City; W I T N E S S E T H : WHEREAS, the City is a duly and regularly created, organized, and existing politic al subdivision of the State of Colorado, existing as such under and by virtue of the Constitution and laws of the State of Colorado and the home rule charter of the City; and WHEREAS, the City has determined, and hereby determines, that it is necessary and in the best interests of the City that certain property be acquired by the City and used for open space purposes (the “Leased Property”); and WHEREAS, for purposes of financing the acquisition of the Leased Property, the City has determined and hereby determines that it is in the best interests of the City that the City and the Lessor enter into this Lease to provide for the acquisition of the Leased Property; and WHEREAS, the Lessor is a non-profit corporation, duly organized, existing, and in good standing under the laws of the State of Colorado, and is duly qualified to do business in the State of Colorado; and under its articles and bylaws, the Lessor is authorized to own and hold real and personal property and to lease the same as lessor and to act in the manner contemplated herein; and WHEREAS, the Lessor will issue a note in the principal amount of $6,975,000 (the “Note”), payable from payments made under this Lease; and WHEREAS, the obligation of the City to pay Base Rentals hereunder (as herei nafter defined) shall be from year to year only; shall constitute currently budgeted expenditures of the City; shall not constitute a mandatory charge or requirement in any ensuing budget year; and shall not constitute a general obligation or other indebtedness of the City within the meaning of any constitutional, statutory, or home rule limitation or requirement concerning the creation of indebtedness, nor a mandatory payment obligation of the City in any ensuing fiscal year beyond any fiscal year during which this Lease shall be in effect; and WHEREAS, neither this Lease nor the issuance of the Note shall directly or indirectly obligate the City to make any payments beyond those appropriated for any fiscal year during which this Lease shall be in effect; and WHEREAS, the Lessor desires to lease the Leased Property to the City, and the City desires to lease the Leased Property from the Lessor, pursuant to the terms and conditions and for the purposes set forth herein; Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 296 of 607 NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows: ARTICLE I DEFINITIONS The following terms will have the meanings specified below unless the context clearly requires otherwise: “Base Rentals” means the payments payable b y the City pursuant to Section 6.2 of this Lease and Exhibit B hereto, during the Original Term and any Renewal Term, which constitute the payments payable by the City for and in consideration of the right to use the Leased Property during such Original Term or Renewal Term. “City” means the City of Boulder, Colorado, or any successor to its functions. “City Representative” means the City Manager or any other person at the time designated to act on behalf of the City for the purpose of performing any act un der this Lease by a written certificate furnished to the Lessor containing the specimen signature of such person or persons and signed on behalf of the City by the Mayor. “County” has the meaning given such term in Section 13.2(a) of this Lease. “County Cure” has the meaning given such term in Section 13.5 of this Lease. “County Cure Notice” has the meaning given such term in Section 13.5 of this Lease “County Sublease” has the meaning given such term in Section 13.2(a) of this Lease. “Event of Default” means one or more events of default as defined in Section 14.1 of this Lease. “Event of Nonappropriation” means a nonrenewal of this Lease by the City, determined by the failure of the City, for any reason, to budget and appropriate, specifically with respect to this Lease, moneys sufficient to pay all Base Rentals, as provided in Section 6.6 of this Lease. “Force Majeure” means, without limitation, the following: Acts of God; strikes, lockouts, or other industrial disturbances; acts of public enemies; orders of restraints of any kind of the government of the United States of America, or of the State, or any of their departments, agencies, or officials, or any civil or military authority; insurrection; riots; landslides; earthquakes; fires; storms; droughts; floods; explosions; breakage or accidents to machinery, transmission pipes, or canals; or any other cause or event not within the control of the Lessor or the City. “Independent Counsel” means an attorney duly admitted to the practice of law before the highest court in the State and who is not an employee of the Lessor, the Public Trustee or the City. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 297 of 607 “Lease” means this Lease Purchase Agreement and any amendments or supplements hereto, including the Exhibits attached hereto. “Lease Term” means the Original Term and any Renewal Terms as to which the City may exercise its option to renew this Lease, as further provided under Section 4.1 of this Lease; subject to the terms and provisions of Sections 4.2, 6.1, and 6.6 of this Lease. “Lease Term” refers to the time during which the City is the Lessee under this Lease; provided, however, certain provisions of this Lease survive the termination of the Lease Term, as further provided in Section 4.2 of this Lease. “Leased Property” means the land to be acquired for open space described in Exhibit A hereto. “Lessor” means The Boulder Municipal Property Authority, a Colorado nonprofit corporation, acting as Lessor under this Lease or any successor thereto. “Lessor Representative” means any of the following: (i) the President of the Lessor; (ii) any Vice-President of the Lessor; (iii) the Secretary-Treasurer of the Lessor; or (iv) any other person or persons at the time designated to act on behalf of the Lessor for purposes of performing any act on behalf of the Lessor under this Lease by a written certificate furnished to the City containing the specimen signature of such person or persons and signed on behalf of the Lessor by the President of the Lessor. “Note” means the $6,975,000 Lease Purchase Revenue Carry-Back Note (Lippincott Ranch Property), Series 2018A, issued by the Lessor. “Note Holder” means the registered owner of the Note. “Note Resolution” means the resolution of the Board of Directors of the Lessor authorizing the issuance of the Note. “Original Term” means the portion of the Lease Term which terminates on December 31, _____. “Permitted Encumbrances” means, as of any particular time: (i) liens for taxes and assessments not then delinquent, or liens which may remain unpaid pursuant to the provisions of Article VIII and Article IX of this Lease; (ii) this Lease and the Deed of Trust; (iii) utility, access, and other easements and rights of way, restrictions and exceptions other than those set forth in clause (vi) below which do not, in the opinion of the City Representative, interfere with or impair the Leased Property; (iv) any financing statements filed to perfect security interests pursuant to this Lease or the Deed of Trust; (v) such minor defects, irregularities, encumbrances, and clouds on title as normally exist with respect to property of the general character of the Leased Property and as do not, in the opinion of the City Representative, materially impair title to the Leased Property; and (vi) those encumbrances and exceptions to title set forth in Exhibit C to this Lease. “Purchase Option Price” means the amount payable, at the option of the City, for the purpose of terminating this Lease and purchasing the Leased Property, which amount shall be Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 298 of 607 equal to such amount as shall be necessary to discharge the Note in the manner provided in the Note Resolution. “Renewal Term” means any optional Renewal Term of the Lease Term as provided in Article IV of this Lease. “Revenues” means (i) the Base Rentals; and (ii) all other revenues derived from this Lease, if any. “State” means the State of Colorado. ARTICLE II REPRESENTATIONS, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants, and Warranties of the City. The City represents, covenants, and warrants for the benefit of the Lessor as follows: (a) The City is a political subdivision duly organized and existing within the State under the Constitution of the State and the home rule charter of the City. The City is authorized by law to enter into the transactions contemplated by this Lease and to carry out its obligations hereunder. The City has duly authorized and approved the execution and delivery of this Lease and other documents related to this transaction. (b) During the Lease Term, the Leased Property will at all times be used by the City for the purpose of performing its lawful governmental functions (except to the extent that subleasing the Leased Property by the City is permitted by Section 13.2 of this Lease). (c) Neither the execution and delivery hereof, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby conflicts with or results in a breach of the terms, conditions, or provisions of any restriction, or any agreement, or instruments to which the City is now a party or by which the City is bound, or constitutes a default under any of the foregoing, or results in the creation or imposition of any lien or encumbrance whatsoever upon any of the property or assets of the City. Section 2.2. Representations, Covenants, and Warranties of Lessor. The Lessor represents, covenants, and warrants for the benefit of the City as follows: (a) The Lessor is a corporation duly organized, existing, and in good standing under the laws of the State, is duly qualified to do business in the State, has all necessary power and authority to purchase the Leased Property and to enter into and perform and observe the covenants and agreements on its part contained in this Lease, is possessed of full power and authority to own and hold real and personal property, and to lease the same as Lessor, and by proper action has duly authorized the execution and delivery of this Lease. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 299 of 607 (b) The Lessor will not pledge or assign the Revenues or any of its other rights under this Lease except to secure the Note, and the Lessor will not mortgage or encumber the Leased Property except for Permitted Encumbrances. (c) Neither the execution and delivery hereof, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby conflicts with or results in a breach of the terms, conditions, and provisions of any restriction, or any agreement, or instrument to which the Lessor is now a party or by which the Lessor is bound, or constitutes a default under any of the foregoing and will not conflict with or constitute a violation of any constitutional or statutory provision or order, rule, regulation, decree or ordinance of any court, government, or governmental authority having jurisdiction over the Lessor or its property, and which conflict or violation will have a material adverse effect on the Lessor, the Leased Property, or its operation. (d) The Lessor acknowledges and recognizes that this Lease will be terminated at the end of the Original Term or any Renewal Term in the event that sufficient funds are not budgeted and appropriated by the City, specifically with respect to this Lease, to continue paying all Base Rentals during the next occurring Renewal Term, and that the acts of budgeting and appropriating funds are legislative acts and, as such, are solely within the discretion of the City. (e) The Lessor agrees that so long as the Note is outstanding, it will maintain its existence, will continue in good standing in the State, will maintain its principal place of business in the State, will not dissolve, and will not consolidate with or merge into another legal entity or permit one or more other legal entities to consolidate with or merge into it, provided that Lessor may, without violating the agreement contained in this subparagraph, consolidate with or merge into another legal entity, or permit one or more legal entities to consolidate with or merge into it, provided that: (i) the surviving, resulting, or transferee legal entity, as the case may be, shall be a legal entity organized and existing under the laws of one of the states of the United States of America, shall be qualified to do business in the State, shall be a non-profit or proprietary entity then permitted to own and hold real and personal property such as the Leased Property and to lease the same as Lessor, and shall assume in writing all of the obligations of the Lessor under this Lease, in which event the City shall release the Lessor in writing, concurrently with and contingent upo n such assumption, from all obligations hereunder; (ii) prior to such consolidation, merger, or transfer, the City will be furnished with the opinion of nationally recognized municipal bond counsel acceptable to the City to the effect that such transaction will not affect the tax-exempt status of the Note; and (iii) prior to such consolidation, merger, or transfer, the City shall be furnished certificates from the chief executive officer of the Lessor and of the surviving, resulting, or transferee legal entity stating that in the opinion of such officers none of the covenants contained in this Lease or the Note will be violated as a result of such consolidation, merger, or transfer. (f) There is no litigation or proceeding pending or, to the knowledge of the Lessor, threatened against the Lessor or any other person affecting the right of the Lessor to execute or deliver this Lease, or the Note, or to comply with its obligations under this Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 300 of 607 Lease or the Note. Neither the execution and delivery of this Lease and the Note by the Lessor, nor compliance by the Lessor with its obligations under this Lease and the Note require the approval of any regulatory body, any parent company, or any other entity, which approval has not been obtained. (g) This Lease constitutes a legal, valid, and binding obligation of the Lessor enforceable in accordance with its terms. ARTICLE III DEMISING CLAUSE The Lessor demises and leases the Leased Property to the City, and the City leases the Leased Property from the Lessor, in accordance with the provisi ons of this Lease, subject only to Permitted Encumbrances, to have and to hold for the Original Term and the Renewal Terms, if any. ARTICLE IV LEASE TERM Section 4.1. Commencement of Lease Term; Renewals. The Lease Term shall commence as of __________, 2018. The Original Term shall terminate on December 31, 2018. The Lease Term may be continued, solely at the option of the City, to the first Renewal Term for an additional year and for each of the additional Renewal Terms thereafter, each of one year in duration, except that the final Renewal Term, if any, shall commence on January 1, 2038, and shall terminate on __________, 2038. In the event that the City shall determine, for any reason, not to renew this Lease, the City shall give written notice to such effect to the Lessor not less than 30 days prior to the end of the then current Original or Renewal Term; provided, however, that a failure to give such notice shall not constitute an Event of Default, nor prevent the City from declining to renew this Lease, nor result in any liability on the part of the City. The option of the City to renew or not to renew this Lease shall be conclusively determined by whether or not the City Council has, on or before the December 31, immediately preceding the commencement of any Renewal Term, budgeted and appropriated, specifically with respect to this Lease, moneys sufficient to pay all the Base Rentals for such ensuing Renewal Term, all as further provided in Section 6.6 of this Lease. It is the intention of the parties hereto that the decision to renew or not to renew this Lease shall be made solely by the City Council and not by any other City officer, and the City Manager of the City (or any other officer at any time charged with the responsibility of formulating budget proposals) is hereby directed to include in the budget proposals submitted to the City Council, in any year in which this Lease shall be in effect, items for all payments required for the ensuing Renewal Term under this Lease. The City shall in any event, whether or not this Lease is to be renewed, furnish the Lessor with copies of its annual budget promptly after the budget is adopted. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 301 of 607 The terms and conditions during any Renewal Term shall be the same as the terms and conditions during the Original Term, except that the Base Rentals shall be as provided in Exhibit B to this Lease. Section 4.2. Termination of Lease Term. The Lease Term shall terminate upon the earliest of any of the following events: (a) the expiration of the Original Term or any Renewal Term during which there occurs an Event of Nonappropriation (which is not thereafter waived) pursuant to Article VI of this Lease and there is no County Cure as set forth in Section 13.5; (b) the purchase by the City of the Leased Property as provided in Article XII of this Lease; (c) payment in full of the Note; (d) an Event of Default and termination of the Lease Term under Article XIV of this Lease and there is no County Cure as set forth in Section 13.5; or (e) __________, 2038, which date constitutes the last day of the final Renewal Term of this Lease, or such later date as all Base Rentals required hereunder shall be paid. Termination of the Lease Term shall terminate all obligations of the City under this Lease and shall terminate the rights of the City to possession of the Leased Property under this Lease (except to the extent of any conveyance pursuant to Article XII of this Lease and except to the extent there is a County Cure as set forth in Section 13.5). ARTICLE V ENJOYMENT OF LEASED PROPERTY The Lessor hereby covenants that the City shall during the Lease Term peaceably and quietly have and hold and enjoy the Leased Property without suit, trouble, or hindrance from the Lessor, except as expressly required or permitted by this Lease or the Indenture. The Lessor shall not interfere with the quiet use and enjoyment of the Leased Property by the City during the Lease Term, so long as the Lease Term shall be in effect. The Lessor shall, at the request of the City and at the cost of the City, join and cooperate fully in any legal action in which the City asserts its right to such possession and enjoyment, or which involves the imposition of any taxes or other governmental charges on or in connection with the Leased Property. In addition, the City may, at its own expense, join in any legal action affecting its possession and enjoyment of the Leased Property and shall be joined (to the extent legally possible and at the expense of the City) in any action affecting its liabilities hereunder. Equitable title to the Leased Property shall be deemed to vest in the City, subject to the rights of the Lessor under this Lease and the Note Holder under the Deed of Trust, and the City’s interest created hereby in the Leased Property shall be prior to any other interest granted or deemed granted by law by the Lessor. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 302 of 607 ARTICLE VI PAYMENTS BY THE CITY Section 6.1. Payments To Constitute Currently Budgeted Expenditures of the City. The City and the Lessor acknowledge and agree that the Base Rentals hereunder shall constitute currently budgeted expenditures of the City. The obligations of the City under this Lease shall be from year to year only (as further provided in Sections 4.1, 4.2, 6.2, and 6.6 hereof) and shall not constitute a mandatory payment obligation of the City in any fiscal year beyond a fiscal year during which this Lease shall be in effect. No provision of this Lease shall be construed or interpreted as creating a general obligation or other indebtedness of the City within the meaning of any constitutional, statutory, or home rule debt limitation. No provision of this Lease shall be construed or interpreted as creating a delegation of governmental powers nor as a donation by or a lending of the credit of the City within the meaning of Section 1 or 2 of Article XI of the Constitution of the State. Neither this Lease nor the issuance of the Note shall directly or indirectly obligate the City to make any payments beyond those appropriated for any fiscal year in which this Lease shall be in effect. The City shall be under no obligation to exercise its option to purchase the Leased Property. No provision of this Lease shall be construed to pledge or to create a lien on any class or source of City moneys, nor shall any provision of this Lease restrict the future issuance of any City bonds or obligations payable from any class or source of City moneys. Section 6.2. Base Rentals. The City shall pay Base Rentals directly to the Lessor during the Original Term and any Renewal Terms, on the due dates set forth in Exhibit B to this Lease. The Base Rentals during the Original Term and any Renewal Terms shall be in the amounts in the “Total Base Rentals” columns, as set forth in Exhibit B to this Lease. The initial Base Rentals, if any, plus other good and valuable consideration to be paid by the City on the date hereof, shall be in consideration for the use of the Leased Property by the City from the time of delivery of this Lease until December 31, 2018. Thereafter, Base Rentals due on any (P&I due date) shall be in consideration for the use of the Leased Property by the City from the immediately preceding January 1 to the immediately following December 31. Section 6.3. Disposition of Base Rentals. Upon receipt by the Lessor of each payment of Base Rentals, the Lessor shall apply the amount of such Base Rentals to payment of the Note. Section 6.4. Manner of Payment. The Base Rentals and, if paid, the Purchase Option Price, shall be paid in lawful moneys of the United States of America to the Lessor at its principal office. The obligation of the City to pay the Base Rentals required under this Article and other sections hereof, during the Lease Term, shall be absolute and unconditional, and payment of the Base Rentals shall not be abated through accident or unforeseen circumstances. Notwithstanding any dispute between the City and the Lessor, the City shall, during the Lease Term, make all payments of Base Rentals when due and shall not withhold any Base Rentals pending final resolution of such dispute, nor shall the City assert any right of set-off or counterclaim against its obligation to make such payments required hereunder. No action or inaction on the part of the Lessor shall affect the City’s obligation to pay all Base Rentals during the Lease Term. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 303 of 607 Section 6.5. Expression of the City’s Need for the Leased Property: Determinations as to Fair Market Value and Fair Purchase Price. The City hereby declares its current need for the Leased Property. It is hereby declared to be the present intention and expectation of the City that this Lease will be renewed annually until title to the Leased Property is acquired by the City pursuant to this Lease; but this declaration shall not be construed as contractually obligating or otherwise binding the City. The City and the Lessor hereby agree and determine that based upon recent appraisals of the Leased Property, the price to be paid for the Leased Property represents the fair market value of the Leased Property; that the Base Rentals hereunder during the Original Term and any Renewal Term represent the fair value of the use of the Leased Property; and that the Purchase Option Price represents the fair purchase price of the Leased Property. The City hereby determines that the Base Rentals do not exceed a reasonable amount so as to place the City under an economic or practical compulsion to renew this Lease or to exercise its option to purchase the Leased Property hereunder. In making such determinations, the City and the Lessor have given consideration to the current appraised value of the Leased Property, the uses and purposes for which the Leased Property will be employed by the City, the benefit to the City by reason of the acquisition of the Leased Property, and the use and occupancy of the Leased Property pursuant to the terms and provisions of this Lease, the option of the City to purchase the Leased Property, and the expected eventual vesting of title to the Leased Property in the City. The City hereby determines and declares that the acquisition of the Leased Property and the leasing of the Leased Property pursuant to this Lease will result in a Leased Property of comparable quality and meeting the same requirements and standards as would be necessary if the acquisition of the Leased Property were performed by the City other than pursuant to this Lease. The City hereby determines and declares that the period during which the City has an option to purchase the Leased Property (i.e., the maximum term of this Lease, including all Renewal Terms) does not exceed the useful life of the Leased Property. Section 6.6. Nonappropriation. In the event that the City Council shall not budget and appropriate, specifically with respect to this Lease, on or before December 31 of each year, moneys sufficient to pay all Base Rentals coming due for the next ensuing Renewal Term, an Event of Nonappropriation shall be deemed to have occurred. If an Event of Nonappropriation occurs, the City shall not be obligated to make payment of the Base Rentals or any other payments provided for herein which accrue after the last day of the Original or Renewal Term during which such Event of Nonappropriation occurs; provided, however, that, subject to the limitations of Section 14.3 hereof, the City shall continue to be liable for Base Rentals allocable to any period during which the City shall continue to occupy the Leased Property. The City shall in all events vacate the Leased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs except to the extent that there is a County Cure as set forth in Section 13.5. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 304 of 607 ARTICLE VII ACQUISITION OF THE LEASED PROPERTY The Lessor shall acquire the Leased Property as of the date of this Lease. Title to the Leased Property shall be held by the Lessor, subject only to Permitted Encumbrances and as otherwise provided in Article V hereof. ARTICLE VIII TITLE TO THE LEASED PROPERTY LIMITATIONS ON ENCUMBRANCES Section 8.1. Title to the Leased Property. Title to the Leased Property and any and all permanent additions and modifications to or replacements of any portion of the Leased Property shall be held in the name of the Lessor, subject only to Permitted Encumbrances and as otherwise provided in Article V hereof, until foreclosed on or conveyed as provided in Article XII o f this Lease, notwithstanding: (i) the occurrence of an uncured Event of Nonappropriation as provided in Section 6.6 of this Lease or one or more uncured Events of Default as defined in Section 14.1 of this Lease; (ii) the occurrence of any event of condemnation as provided in Article X of this Lease; or (iii) the uncured violation by the Lessor of any provision of this Lease. The City shall have no right, title, or interest in the Leased Property or any additions and modifications to or replacements of any portion of the Leased Property, except as expressly set forth in this Lease. Section 8.2. No Encumbrance, Mortgage, or Pledge of Leased Property. The City shall not permit any lien to be perfected or remain against the Leased Property except Permitted Encumbrances. Neither the Lessor nor the City shall directly or indirectly create, incur, assume, or suffer to exist any mortgage, pledge, lien, charge, encumbrance, or claim on or with respect to the Leased Property, except Permitted Encumbrances. The City shall promptly, at its own expense, take such action as may be necessary to duly discharge any such unauthorized mortgage, pledge, lien, charge, encumbrance, or claim not excepted above which it shall have created, incurred, or suffered to exist. The Lessor shall promptly, at its own expense, take such action as may be necessary to duly discharge any such unauthorized mortgage, pledge, lien, charge, encumbrance, or claim not excepted above which it shall have created or incurred. ARTICLE IX MAINTENANCE, TAXES, INSURANCE, AND OTHER CHARGES Section 9.1. Maintenance of the Leased Property by the City. The City agrees that, at all times during the Lease Term, the City will maintain, preserve, and keep the Leased Property or cause the Leased Property to be maintained, preserved, and kept, with the appurtenances and every part and parcel thereof, in good repair, working order, and condition. The Lessor shall have no responsibility in any of these matters. Section 9.2. Taxes, Other Governmental Charges, and Utility Charges. In the event that the Leased Property or any portion thereof shall, for any reason, be deemed subject to taxation, Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 305 of 607 assessments, or charges lawfully made by any governmental body, the City shall, during the Lease Term, pay the amount of all such taxes, assessments, and governmental charges. With respect to special assessments or other governmental charges which may be lawfully paid in installments over a period of years, the City shall be obligated to provide only for such installments as are required to be paid during the Original or any Renewal Term. The City shall not allow any liens for taxes, assessments, or governmental charges to exist with respect to the Leased Property or any portion thereof (including, without limitation, any taxes levied upon the Leased Property or any portion thereof which, if not paid, will become a charge on the rentals and receipts from the Leased Property or any portion thereof or any interest therein, including the interest of the Lessor), or the rentals and revenues derived therefrom or hereunder. The City may, at the expense and in the name of the City, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments, utility or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the Lessor shall notify the City that, in the opinion of Independent Counsel, by nonpayment of any such items, the security afforded pursuant to the Deed of Trust of the Lessor will be materially endangered or the Leased Property or any portion thereof will be subject to loss or forfeiture, or the Lessor will be subject to liability, in which event such taxes, assessments, utility or other charges shall be paid forthwith (provided, however, that such payment shall not constitute a waiver of the right to continue to contest such taxes, assessments, utility or other charges). Section 9.3. Provisions Regarding Casualty, Public Liability, and Property Damage Insurance. The City shall cause casualty and property damage insurance to be carried and maintained with respect to the Leased Property in an amount deemed necessary and reasonable by the City. ARTICLE X CONDEMNATION If the Leased Property shall be taken by the exercise of the power of eminent domain, the City shall be obligated to continue to pay Base Rentals hereunder for the then current term of this Lease (i.e., the Original Term or Renewal Term, as the case may be). Any condemnation award shall be applied first to Base Rentals when due, and any balance shall be paid to the Lessor to the extent that this Lease has been terminated. ARTICLE XI DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 11.1. Disclaimer of Warranties. THE LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OR FITNESS FOR USE OF THE LEASED PROPERTY, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE LEASED PROPERTY. The City hereby acknowledges and declares that the City is solely responsible for the Leased Property and for the Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 306 of 607 operation and maintenance of the Leased Property during the Lease Term, and that the Lessor has no responsibility therefor. In no event shall the Lessor be liable for any direct or indirect, incidental, special, or consequential damage in connection with or arising out of this Lease or the existence, furnishing, functioning, or use by the City of any i tem, product or service provided for herein. Section 11.2. Further Assurances and Corrective Instruments. The Lessor and the City agree that they will, from time to time, execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Leased Property hereby leased or intended so to be, or for otherwise carrying out the intention hereof. Section 11.3. Lessor and City Representatives. Whenever under the provisions hereof the approval of the Lessor or the City is required to take some action at the request of the other, unless otherwise provided, such approval or such request shall be given for the Lessor by the Lessor Representative, and for the City by the City Representative, and the Lessor and the City shall be authorized to act on any such approval or request. Section 11.4. Compliance with Requirements. During the Lease Term, the City and the Lessor shall observe and comply promptly with all current and future orders of all courts having jurisdiction over the Leased Property or any portion thereof, and all current and future requirements of all insurance companies writing policies covering the Leased Property or any portion thereof. Section 11.5. City Acknowledgment of Note. The City approves, acknowledges, directs, and agrees to the issuance of the Note and the pledging of the Base Rentals hereunder to secure said Note. Section 11.6. Tax Covenants. The City covenants that it shall at all times do and perform all acts and things permitted by law and which are necessary or desirable in order to assure that interest paid by the Authority on the Note shall, for purposes of federal income taxation, not be includable in gross income under the Internal Revenue Code of 1986, as amended (the “Code”), or any other valid provision of law. In particular, but without limitation, the City further represents, warrants, and covenants that the Leased Property will not be used in a manner which will cause the Note to be considered a “private activity bond” within the meaning of the Code. ARTICLE XII CONVEYANCE OF THE LEASED PROPERTY Section 12.1. Conveyance of the Leased Property. The Lessor shall transfer and convey to the City the Leased Property in the manner provided for in Section 12.2 of this Lease; provided, however, that prior to such transfer and conveyance, either: (a) the City shall have paid the then applicable Purchase Option Price; or (b) the City shall have paid all Base Rentals set forth in Exhibit B hereto, for the Original Term and all Renewal Terms; or Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 307 of 607 (c) the Note shall have been paid in full. The City is hereby granted the option to terminate the Lease Term and to purchase the Leased Property upon payment by the City of the then applicable Purchase Option Price. Section 12.2. Manner of Conveyance. At the closing of any purchase or other conveyance of the Leased Property pursuant to Section 12.1 of this Lease, the Lessor shall execute and deliver to the City all necessary documents assigning, transferring, and conveying good and marketable title to the Leased Property, as the Leased Property then exists, subject to the following: (i) Permitted Encumbrances, other than this Lease and the Deed of Trust and any Financing Statements, indicating the City or the Lessor as the debtor and the Lessor or the Public Trustee as secured party, filed to perfect any security interests granted under the Lease or the Deed of Trust; (ii) all liens, encumbrances, and restrictions created or suffered to exist by the Lessor as required or permitted by this Lease, or the Deed of Trust, or arising as a result of any action taken, or omitted to be taken, by the Lessor as required or permitted by this Lease or the Deed of Trust; (iii) any lien or encumbrance created by action of the City; and (iv) those liens and encumbrances (if any) to which title to the Leased Property was subject when conveyed to the Lessor. ARTICLE XIII PLEDGE, SUBLEASING, INDEMNIFICATION, MORTGAGING, AND SELLING Section 13.1. Pledge. The parties hereto agree that the Lessor shall be entitled to pledge the Base Rentals and its remedies hereunder as security for the Note. Section 13.2. Assignment and Subleasing by the City. This Lease may not be assigned by the City for any reason. However, the Leased Property may be subleased, as a whole or in part, by the City without the necessity of obtaining the consent of the Lessor, subject, however, to each of the following conditions: (a) The Leased Property may be subleased, (i) in whole or in part, only to an agency, or department, or political subdivision of the State; or (ii) to another entity or entities, if, in the opinion of nationally recognized bond counsel acceptable to the Lessor, such sublease will not impair the exemption from federal income taxation of the interest on the Note. Specifically, the Leased Property may be subleased to Jefferson County, Colorado (the “County”), a body politic and corporate duly organized and validly existing under the laws of the State (the “County Sublease”) with rights of cure thereunder as contemplated pursuant to Section 13.5 below. (b) This Lease and the obligations of the City hereunder shall, at all times during the Original and any Renewal Terms, remain obligations of the City, and the City shall maintain its direct relationships with the Lessor, notwithstanding any sublease. (c) The City shall furnish or cause to be furnished to the Lessor a copy of any sublease agreement. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 308 of 607 (d) No sublease by the City shall cause the Leased Property to be used for any purpose which would adversely affect the exemption from federal income taxation of any interest on the Note, or which would violate the Constitution, statutes, or laws of the State, or the home rule charter of the City. Section 13.3. No Negligence. The City hereby covenants not to act negligently in connection with the Leased Property. Section 13.4. Restriction on Mortgage or Sale of Leased Property. The City and the Lessor agree that, except for: (i) the pledge by the Lessor of this Lease as security for the Note and mortgaging of the Leased Property pursuant to the Deed of Trust, which are hereby authorized and acknowledged; (ii) any exercise by the Public Trustee or the Lessor of the remedies afforded by this Lease; (iii) the right of the City to sublease all or a portion of the Leased Property pursuant to Section 13.2 of this Lease; and (iv) any conveyance to the City pursuant to Article XII of this Lease; neither the Lessor nor the City will mortgage, sell, assign, transfer, or convey the Leased Property or any portion thereof during the Lease Term. Section 13.5. Right to Cure by Sublessee. In connection with the County Sublease, the County, as the subtenant, shall have the right to cure any Event of Nonappropriation or Event of Default by the City hereunder as follows: Lessor shall deliver written notice to the County upon Lessor’s determination of an Event of Nonappropriation, an Event of Default or upon its determination of facts or events which, with the passage of time or notice or both would constitute an Event of Default (the “County Cure Notice”), whereupon the County shall have the right (i) in the Event of Nonappropriation by the City, the County shall have a period of thirty (30) days following receipt of the County Cure Notice to make the payment of the Base Rentals for the applicable Renewal Term, in which event the Event of Nonappropriation shall be deemed cured or (ii) in the Event of Default, the County shall have a period of thirty (30) days following receipt of the County Cure Notice to initiate a cure of the events comprising the Event of Default and to the extent that such cure is timely initiated and diligently pursued by the County, then the Event of Default shall be deemed cured by the County. The Lessor agrees to accept a cure performance by the County under this Section 13.5 (a “County Cure”) to the same extent as the City’s anticipated performance under this Lease. In the event of a County Cure for an Event of Nonappropriation hereunder, this Lease shall continue to another Renewal Year and, as long as either the City or the County by virtue of a County Cure, pays the Base Rentals, then the Renewal Term shall continue until the outside date contemplated in Section 4.2(e). ARTICLE XIV EVENTS OF DEFAULT AND REMEDIES Section 14.1. Events of Default Defined. Any one of the following shall be “Events of Default” under this Lease: (a) failure by the City to pay any Base Rentals during the Lease Term for a period of 25 days after written notice specifying such failure and requesting that it be remedied, shall be received by the City from the Lessor and there is no County Cure as set forth in Section 13.5; or Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 309 of 607 (b) failure by the City to vacate the Leased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs and there is no County Cure as set forth in Section 13.5; or (c) failure by the City to observe and perform any covenant, condition, or agreement on its part to be observed or performed, other than as referred to in (a) or (b), for a period of 45 days after written notice, specifying such failure and requesting that it be remedied, shall be given to the City by the Lessor, unless the Lessor shall agree in writing to an extension of such time prior to its expiration; provided, however, that if the failure stated in the notice cannot be corrected within the applicable period, the Lessor shall not withhold its consent to an extension of such time, if corrective action shall be instituted by the City within the applicable period and diligently pursued until the default is corrected and there is no County Cure as set forth in Section 13.5. The foregoing provisions of this Section are subject to the following limitations: (i) the City shall be obligated to pay the Base Rentals only during the Lease Term, except as otherwise expressly provided in this Lease; and (ii) if, by reason of Force Majeure, the City shall be unable, in whole or in part, to carry out any agreemen t on its part herein contained, other than the obligations on the part of the City contained in Article VI of this Lease, the City shall not be deemed in default during the continuance of such inability. The City agrees, however, to remedy, as promptly as legally and reasonably possible, the cause or causes preventing the City from carrying out its agreement; provided that the settlement of strikes, lockouts, and other industrial disturbances shall be entirely within the discretion of the City. Section 14.2. Remedies on Default. Whenever any Event of Default referred to in Section 14.1 of this Lease shall have happened and be continuing and if there is no County Cure as set forth in Section 13.5 within the time frame set forth therein, then the Lessor may terminate the Lease Term and may give notice to the City to vacate the Leased Property within 15 days from the date of such notice. After the occurrence of an uncured Event of Default, the Lessor shall be entitled to take one or any combination of the following additional remedial steps: (a) temporarily lease the Leased Property or any portion thereof, pending sale of the Leased Property; (b) recover from the City: (i) the portion of Base Rentals which would otherwise have been payable hereunder, allocable to any period in which the City continues to occupy the Leased Property; and (ii) Base Rentals which would otherwise have been payable by the City hereunder during the remainder, after the City vacates the Leased Property, of the Original or Renewal Term in which such Event of Default occurs; provided, however, that the Lessor shall be obligated to the City to use its best efforts to lease or sublease the Leased Property for the remainder of such Original or Renewal Term, as provided in clause (a) of this Section and the Net Proceeds of such leasing Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 310 of 607 shall be offset against the amount recoverable from the City under this clause (ii); and (c) take whatever action at law or in equity may appear necessary or desirable to enforce its right in and to the Leased Property under this Lease. Section 14.3. Limitations on Remedies. A judgment requiring a payment of money may be entered against the City by reason of an Event of Default only as to the City’s liabilities described in Section 14.2(b) of this Lease. A judgment requiring a payment of money may be entered against the City by reason of an Event of Nonappropriation only to the extent that the City fails to vacate the Leased Property as required by Section 6.6 of this Lease, and only as to the liabilities described in Section 14.2(b)(i) of this Lease. Notwithstanding Section 14.2(b)(ii) of this Lease, any Event of Default consisting of failure by the City to vacate the Leased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs shall not result in any liability for Base Rentals allocable to any period other than the period in which the City continues to occupy the Leased Property. Section 14.4. No Remedy Exclusive. Subject to Section 14.3 hereof, no remedy herein conferred upon or reserved to the Lessor is intended to be exclusive, and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, and the same may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Lessor to exercise any remedy reserved in this Article, it shall not be necessary to give any notice, other than such notice as may be required in this Article. Section 14.5. Waivers. In the event that any agreement contained herein should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. Section 14.6. Agreement To Pay Attorneys’ Fees and Expenses. In the event that either party hereto shall default under any of the provisions hereof and the nondefaulting party shall employ attorneys or incur other expenses for the collection of Base Rentals, or the enforcement of performance or observance of any obligation or agreement on the part of the defaulting party herein contained, the defaulting party agrees that it shall pay on demand therefor to the nondefaulting party the fees of such attorneys and such other expenses so incurred by the nondefaulting party, to the extent that such attorneys’ fees and expenses may be determined to be reasonable by a court of competent jurisdiction. Section 14.7. Waiver of Appraisement, Valuation, Stay, Extension, and Redemption Laws. The Lessor and the City agree, to the extent permitted by law, that in the case of a termination of the Lease Term by reason of an Event of Nonappropriation or an uncured Event of Default, neither the Lessor, nor the City, nor any one claiming through or under either of them shall or will set up claim or seek to take advantage of any appraisement, valuation, stay, extension, or redemption laws now or hereafter in force in order to prevent or hinder the enforcement of the Indenture; and the Lessor and the City, for themselves and all who may at any time claim through Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 311 of 607 or under either of them, each hereby waives, to the full extent that it may lawfully do so, the benefit of all such laws. ARTICLE XV MISCELLANEOUS Section 15.1. Notices. All notices, certificates, or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by certified or registered mail, postage prepaid, as follows: If to the City: Municipal Building, 1777 Broadway, Boulder, Colorado 80302, Attention: City Attorney; and if to the Lessor: Municipal Building, 1777 Broadway, Boulder, Colorado 80302, Attention: City Attorney. The City and the Lessor may, by written notice, designate any further or different addresses to which subsequent notices, certificates, or other communications shall be sent. Section 15.2. Binding Effect. This Lease shall inure to the benefit of and shall be binding upon the Lessor and the City and their respective successors and assigns, subject, however, to the limitations contained in Article XIII of this Lease. Section 15.3. Amendments, Changes, and Modifications. Except as otherwise provided in this Lease, subsequent to the delivery of the Note and prior to their payment in full, this Lease may not be effectively amended, changed, modified, or altered without the written consent of the Note Holder. Section 15.4. Net Lease. This Lease shall be deemed and construed to be a “net lease”, and the City shall pay absolutely net during the Lease Term, the Base Rentals and all other payments required hereunder, free of any deductions, and without abatement, deduction, or setoff (other than credits against Base Rentals expressly provided for in this Lease). Section 15.5. Payments Due on Holidays. If the date for making any payment, or the last day for performance of any act, or the exercising of any right, as provided in this Lease, shall be a legal holiday or a day on which banking institutions in the city in which the principal office of the Lessor is located are authorized by law to remain closed, such payment may be made, or act performed, or right exercised on the next succeeding day that is not a legal holiday or a day on which such banking institutions are not authorized by law to remain closed with the same force and effect as if done on the nominal date provided in this Lease. Section 15.6. Severability. In the event that any provision of this Lease, other than the requirement of the City to pay Base Rentals and the requirement of the Lessor to provide quiet enjoyment of the Leased Property and to convey the Leased Property to the City under the conditions set forth in Article XII of this Lease, shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 15.7. Execution in Counterparts. This Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 312 of 607 Section 15.8. Applicable Law. This Lease shall be governed by and construed in accordance with the laws of the State. Section 15.9. Captions. The captions of headings herein are for convenience only and in no way define, limit, or describe the scope or intent of any provisions or sections of the Lease. [End of text; signature pages follow.] Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 313 of 607 IN WITNESS WHEREOF, the Lessor has executed this Lease in its corporate name with its corporate seal hereunto affixed and attested by its duly authorized officers; and the City has caused this Lease to be executed in its name and the seal of the City affixed and attested by duly authorized officers thereof. All of the above are effective as of the date first above written. [SEAL] THE BOULDER MUNICIPAL PROPERTY AUTHORITY, a Colorado non-profit corporation, as the Lessor By Suzanne Jones, President ATTEST: By Cheryl Pattelli, Secretary-Treasurer [SEAL] CITY OF BOULDER, COLORADO, a political subdivision, as Lessee By Suzanne Jones, Mayor ATTEST: By Lynnette Beck, City Clerk Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 314 of 607 EXHIBIT A LEGAL DESCRIPTION Parcel 1: The Southeast ¼ of the Southeast ¼ of Section 36, Township 1 South, Range 71 West of the 6th P.M., County of Boulder, State of Colorado. Parcel 2: That part of the Northeast ¼ lying West of and adjoining the West line of the Denver & Salt Lake Rail Road right-of-way as described in Book 126 at Page 113, Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado. Parcel 3: The Northeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except so much thereof as lies West of the East line of railroad right of way as shown by deed recorded in Book 126 at Page 113, Jefferson County, Colorado records. Parcel 4: The South ½ of the South ½ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado and the Northwest ¼ of the Southwest ¼ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado; and The Southeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except that portion of said Section 1 conveyed to The Denver Northwestern and Pacific Railway Company by the Quit Claim Deed recorded January 19, 1903 in Book 121 at Page 180, of the Jefferson County, Colorado records, and Except those portions of said Sections 1 and 6 conveyed to Katherine T. O’Connor by the Warranty Deed recorded October 26, 193 in Book 347 at Page 159, of the Jefferson County, Colorado records. Parcel 5: A non-exclusive easement for ingress and egress purposes over and across the Northwest ¼ of Section 7, Township 2 South, Range 70 West of the 6th P.M., Jefferson County, Colorado, said easement being over an existing access road and being 20 feet on each side of the following described centerline: Beginning at a point on the North line of said Northwest ¼ of Section 7, from which point the Northwest corner of Section 7 bears North 88°46’26” West, a distance of 784.09 feet; thence along said centerline the following courses and distances: South 59°43’29” East, a distance of 5.41 feet Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 315 of 607 to a point of curve; thence along a curve to the left having a radius of 143.37 feet, a central angle of 19°47’00”, an arc distance of 49.50 feet to a point of tangency; thence South 79°30’29” East, a distance of 155.12 feet to a point of curve; thence along a curve to the right having a radius of 316.01 feet, a central angle of 10°50’45”, an arc distance of 59.82 feet to a point of tangency; thence South 68°39’43” East, a distance of 111.37 feet to a point of curve; thence along a curve to the right having a radius of 227.37 feet, a central angle of 19°57’19”, an arc distance of 79.19 feet to a point of tangency; thence South 48°42’24” East, a distance of 238.34 feet to a point of curve; thence along a curve to the left having a radius of 401.68 feet, a central angle of 16°59’28”, an arc distance of 119.12 feet to a point of tangency; thence South 65°41’53” East, a distance of 240.47 feet to a point of curve; thence along a curve to the right having a radius of 102.46 feet, a central angle of 60°42’17”, an arc distance of 108.56 feet to a point of tangency, said point being on the existing centerline of a road deeded to Jefferson County on August 6, 1935, by deed recorded in Book 374 at Page 140, and from which point the Northwest corner of Section 7 bears North 72°14’59” West, a distance of 1862.34 feet. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not li mited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 316 of 607 EXHIBIT B SCHEDULE OF BASE RENTALS Year Total Base Rental Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 317 of 607 EXHIBIT C ENCUMBRANCES Attachment G Lease Purchase Agreement Item 3M - Lippincott BMPA City Council Meeting Page 318 of 607 SUBLEASE by and between CITY OF BOULDER, COLORADO, as Sublessor and COUNTY OF JEFFERSON, STATE OF COLORADO, as Sublessee Dated as of [_____________] Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 319 of 607 ARTICLE I DEFINITIONS ............................................................................................................................... 2 ARTICLE II REPRESENTATIONS, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants and Warranties of the County ............................. 5 Section 2.2. Representations, Covenants and Warranties of City ........................................ 6 ARTICLE III DEMISING CLAUSE ................................................................................................................... 6 ARTICLE IV SUBLEASE TERM Section 4.1. Commencement of Sublease Term; Renewals ................................................ 7 Section 4.2. Termination of Sublease Term......................................................................... 7 ARTICLE V ENJOYMENT OF SUBLEASED PROPERTY ............................................................................ 8 ARTICLE VI PAYMENTS BY THE COUNTY Section 6.1. Payments To Constitute Currently Budgeted Expenditures of the County .............................................................................................................. 8 Section 6.2. Sublease Rentals .............................................................................................. 8 Section 6.3. Disposition of Sublease Rentals....................................................................... 9 Section 6.4. Manner of Payment .......................................................................................... 9 Section 6.5. Expression of the County’s Intention To Acquire the Subleased Property: Determinations As to Fair Market Value and Fair Purchase Price ................................................................................................................. 9 Section 6.6. Nonappropriation by the County ................................................................... 10 Section 6.7. Right to Cure Events Under the Lease ........................................................... 10 Section 6.8. Final Apportionment ...................................................................................... 10 ARTICLE VII ACQUISITION OF THE PROPERTY ....................................................................................... 11 ARTICLE VIII TITLE TO THE SUBLEASED PROPERTY LIMITATIONS ON ENCUMBRANCES Section 8.1. Title to the Subleased Property ...................................................................... 11 Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 320 of 607 Section 8.2. No Encumbrance, Mortgage, or Pledge of Subleased Property..................... 11 ARTICLE IX MAINTENANCE, TAXES, INSURANCE, AND OTHER CHARGES Section 9.1. Use and Maintenance of the Subleased Property ........................................... 12 Section 9.2. Taxes, Other Governmental Charges, and Utility Charges............................ 12 Section 9.3. Provisions Regarding Casualty, Public Liability, and Property Damage Insurance ........................................................................................................ 13 ARTICLE X CONDEMNATION ..................................................................................................................... 13 ARTICLE XI DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 11.1. Disclaimer of Warranties ............................................................................... 13 Section 11.2. Further Assurances and Corrective Instruments ............................................ 13 Section 11.3. Lessor and County Representatives ............................................................... 13 Section 11.4. Compliance With Requirements .................................................................... 13 Section 11.5. County Acknowledgment of Note ................................................................. 14 Section 11.6. Tax Covenants ............................................................................................... 14 ARTICLE XII CONVEYANCE OF THE SUBLEASED PROPERTY Section 12.1. Conveyance of the Subleased Property.......................................................... 14 Section 12.2. Manner of Conveyance .................................................................................. 14 ARTICLE XIII PLEDGE, SUBLEASING, MORTGAGING, AND COVENANTS Section 13.1. Pledge ............................................................................................................. 15 Section 13.2. Assignment and Subleasing ........................................................................... 15 Section 13.3. No Negligence ............................................................................................... 15 Section 13.4. Restriction on Mortgage or Transfer of Subleased Property ......................... 15 ARTICLE XIV EVENTS OF DEFAULT AND REMEDIES Section 14.1. Events of Default by County Defined ............................................................ 15 Section 14.2. Remedies on Default ...................................................................................... 16 Section 14.3. Limitations on Remedies ............................................................................... 16 Section 14.4. No Remedy Exclusive.................................................................................... 17 Section 14.5. Waivers .......................................................................................................... 17 Section 14.6. Agreement To Pay Attorneys’ Fees and Expenses ........................................ 17 Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 321 of 607 Section 14.7. Waiver of Appraisement, Valuation, Stay, Extension, and Redemption Laws ............................................................................................................... 17 Section 14.8. Default by the City; Remedies ....................................................................... 17 Section 14.9. Limitation of Damages .................................................................................. 17 ARTICLE XV MISCELLANEOUS Section 15.1. Notices ........................................................................................................... 18 Section 15.2. Binding Effect ................................................................................................ 18 Section 15.3. Amendments, Changes and Modifications .................................................... 18 Section 15.4. Net Lease ....................................................................................................... 18 Section 15.5. Payments Due on Holidays ............................................................................ 18 Section 15.6. Severability .................................................................................................... 18 Section 15.7. Execution in Counterparts.............................................................................. 18 Section 15.8. Applicable Law .............................................................................................. 19 Section 15.9. Captions ......................................................................................................... 19 EXHIBIT A LEGAL DESCRIPTION EXHIBIT B SCHEDULE OF SUBLEASE RENTALS EXHIBIT C ENCUMBRANCES Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 322 of 607 SUBLEASE THIS SUBLEASE, dated __________, together with any amendments hereto made in accordance herewith (this “Sublease”), is made and entered into this _____ day of __________, 20___, by and between CITY OF BOULDER, COLORADO (the “City” or “Sublessor”), a municipal corporation duly organized and existing as a home rule city under its home rule charter (the “Charter”), as sublessor hereunder, and COUNTY OF JEFFERSON, STATE OF COLORADO (the “County” or “Sublessee” and, together with the City or Sublessor, the “Parties” and each a “Party”), a body politic and corporate duly organized and existing under the laws of the State of Colorado (the “State”), as sublessee hereunder. W I T N E S S E T H : WHEREAS, the City is a municipal corporation duly organized and existing as a home rule city under its Charter and is authorized to enter into this Sublease, and the transaction contemplated hereby, and to perform all of its obligations hereunder; and WHEREAS, the County is a body politic and corporate duly organized and validly existing under the laws of the State and is authorized to enter into this Sublease, and the transaction contemplated hereby, and to perform all of its obligations hereunder; and WHEREAS, the City Council of the City and the Board of County Commissioners of the County believe that acquisition of land pursuant to Article XII of the City’s Charter (“City’s Charter”) and the County’s 1972 Open Space Enabling Resolution, as amended (“County’s Enabling Resolution”) for purposes including open space, agriculture, scenic preservation, passive recreation, and trails (“Open Space Purposes”) is a vital need for the communities of the City and the County; and WHEREAS, it has been proposed that certain real property located within the County and within Boulder County, Colorado, consisting of approximately 442 acres and which is legally described on Exhibit A, attached hereto and incorporated herein by reference (the “Property”), will be purchased by the City for $7,750,000 (the “Purchase Price”) of which $775,000 has been paid as a deposit and down-payment (the “Down Payment”) pursuant to that certain Purchase Agreement (the “Lippincott Agreement”) by and between the City, as buyer, and Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincot t, as seller (the “Seller”), to be jointly improved, operated and managed by the City and the County as open space in compliance with the City’s Charter and the County’s Enabling Resolution; and WHEREAS, for purposes of financing the acquisition of the Property, the City has determined and hereby determines that it is in the best interests of the City that the City and the Boulder Municipal Property Authority (the “Corporation”) enter into a Lease Purchase Agreement, dated the date hereof (the “Lease”), to provide for the acquisition of the Property; and WHEREAS, the Corporation will issue a carry-back non-recourse promissory note to the Seller in the principal amount of $6,975,000 (the “Note”), payable in twenty (20) annual rental payments (the “Base Rentals”) made under the Lease, and the Note shall be secured by a deed of trust (the “Deed of Trust”) for the benefit of the Seller, with interest accruing at the rate of 3.50% per annum; and Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 323 of 607 WHEREAS, the County desires to participate in the acquisition of the Property for Open Space Purposes and agrees to enter into this Sublease pursuant to which the County shall contribute 50% of the Purchase Price by paying 50% of the Down Payment and 50% of the Base Rentals (as sublease payments hereunder) payable by the City pursuant to the Lease in exchange for an undivided interest of a 50% interest in the Property as the same may be adjusted for payments actually made as set forth herein; and WHEREAS, under the terms of the Lease and this Sublease, upon full and final payment of the twenty (20) annual Base Rental payments by the City pursuant to the Lease and the full and final payment of the twenty (20) annual sublease payments by the County pursuant to the Sublease (the “Sublease Rentals”), the Corporation will convey fee title interest in the Property to the City and the City will then convey a 50% undivided ownership interest in the Property to the County; and WHEREAS, the obligation of the County to pay the Sublease Rentals hereunder shall be from year to year only; shall constitute currently budgeted expenditures of the County; shall not constitute a mandatory charge or requirement in any ensuing budget year; and shall not constitute a general obligation or other indebtedness of the County within the meaning of any constitutional, or statutory requirement concerning the creation of indebtedness, nor a mandatory payment obligation of the County in any ensuing fiscal year beyond any fiscal year during which this Sublease shall be in effect; and WHEREAS, this Sublease shall not directly or indirectly obligate the County to make any payments beyond those appropriated for any fiscal year during which this Sublease shall be in effect; NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows: ARTICLE I DEFINITIONS The following terms will have the meanings specified below unless the context clearly requires otherwise. To the extent that capitalized terms are used and not defined herein, such terms shall have the meanings given them in the Lease. “Base Rentals” has the meaning set forth in the Lease. “City” means the City of Boulder, Colorado, or any successor to its functions. “City Representative” means the City Manager or any other person at the time designated to act on behalf of the City for the purpose of performing any act under this Sublease by a written certificate furnished to the County containing the specimen signature of such person or persons and signed on behalf of the City by the Mayor. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 324 of 607 “County” means County of Jefferson, Colorado, a body politic and corporate duly organized and existing under the laws of the State, acting as Sublessee under this Sublease or any successor thereto. “County Cure” has the meaning given such term in Section 6.7. “County Cure Notice” has the meaning given such term in Section 6.7. “County Representative” means the Chair of the Board or any other person or persons designated to act on behalf of the County for the purposes of performing any act under this this Sublease by a written certificate furnished to the City containing the specimen signature of such person or persons and signed on behalf of the County by any officer of the Board. The identity(ies) of the County Representative(s) may be changed by the County from time to time by furnishing a new certificate to the City. “Event of Default” means one or more events of default as defined in Section 14.1 of this Sublease. “Event of Nonappropriation” means a nonrenewal of this Sublease by the County, determined by the failure of the County, for any reason, to budget and appropriate, specifically with respect to this Sublease, moneys sufficient to pay all Sublease Rentals, as provided in Section 6.6 of this Sublease. “Force Majeure” means, without limitation, the following: Acts of God; strikes, lockouts, or other industrial disturbances; acts of public enemies; orders of restraints of any kind of the government of the United States of America, or of the State, or any of their departments, agencies, or officials, or any civil or military authority; insurrection; riots; landslides; earthquakes; fires; storms; droughts; floods; explosions; breakage or accidents to machinery, transmission pipes, or canals; or any other cause or event not within the control of the City or the County. “Independent Counsel” means an attorney duly admitted to the practice of law before the highest court in the State and who is not an employee of the City, the Public Trustee or the County. “Lease” means the Lease Purchase Agreement, dated as of the date hereof, and any amendments or supplements hereto, including the Exhibits attached thereto. “Lease Event of Default” shall have the meaning given to the term “Event of Default” in the Lease. “Lease Event of Nonappropriation” shall have the meaning given to the term “Event of Nonappropriation” in the Lease. “Note” means the $6,975,000.00 Lease Purchase Revenue Carry-Back Note (Lippincott Open Space Property), Series 2018. “Note Holder” means the registered owner of the Note. “Open Space Purposes” shall have the meaning set forth in the preambles of this Sublease. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 325 of 607 “Original Term” means the portion of the Sublease Term which terminates on December 31, 2018. “Permitted Encumbrances” means, as of any particular time: (i) liens for taxes and assessments not then delinquent, or liens which may remain unpaid pursuant to the provisions of Article VIII and Article IX of the Lease and Article VIII and Article IX of this Sublease; (ii) the Lease, this Sublease and the Deed of Trust; (iii) utility, access, and other easements and rights of way, restrictions and exceptions other than those set forth in (vi) below which do not, in the opinion of the Parties, interfere with or impair the Subleased Property; (iv) any financing statements filed to perfect security interests pursuant to the Lease, this Sublease or the Deed of Trust; (v) such minor defects, irregularities, encumbrances, and clouds on title as normally exist with respect to property of the general character of the Subleased Property and as do not, in the opinion of the Parties, materially impair title to the Subleased Property; and (vi) those encumbrances and exceptions to title set forth in Exhibit C to the Lease and this Sublease. “Property” means the land to be acquired for Open Space Purposes described in Exhibit A hereto as the same is further described in the Lease and which includes the Subleased Property. “Purchase Option Price” means, for the purpose of Section 12.1 hereof, the amount payable, at the option of the County, for the purpose of terminating this Sublease and purchasing the Subleased Property which shall arise only in the event that the City exercises its rights under the terms of the Lease to terminate the Lease and pay the balance of the amounts due under the Note. “Renewal Term” means any optional Renewal Term of the Sublease Term as provided in Article IV of this Sublease. “Revenues” means (i) the Sublease Rentals; and (ii) all other revenues derived from this Sublease, if any. “Seller” means Charles Lippincott aka Charles Thomas Lippincott and Shirley Lippincott aka Shirley Ann Lippincott. “State” means the State of Colorado. “Sublease” means this Sublease, and any amendments or supplements hereto, including the Exhibits attached hereto. “Sublease Rentals” means the payments payable by the County pursuant to Section 6.2 of this Sublease and Exhibit B hereto, during the Original Term and any Renewal Term, which constitute the payments payable by the County for and in consideration of the right to use the Subleased Property for Open Space Purposes during such Original Term or Renewal Term, and which are each one-half the amount of each Base Rental payment. “Sublease Term” means the Original Term and any Renewal Terms as to which the County may exercise its option to renew this Sublease, as further provided under Section 4.1 of this Sublease; subject to the terms and provisions of Sections 4.2, 6.1 and 6.6 of this Sublease. “Sublease Term” refers to the time during which the County is the Sublessee under this Sublease; Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 326 of 607 provided, however, certain provisions of this Sublease survive the termination of the Sublease Term, as further provided in Section 4.2 of this Sublease. “Subleased Property” means an undivided nonexclusive 50% interest in the Property. ARTICLE II REPRESENTATIONS, COVENANTS, AND WARRANTIES Section 2.1. Representations, Covenants and Warranties of the County. The County represents, covenants, and warrants for the benefit of the City as follows: (a) The County is a body politic and corporate of the State duly organized and validly existing under the laws of the State. The County is authorized by law to enter into the transactions contemplated by this Sublease and to carry out its obligations hereunder. The County has duly authorized and approved the execution and delivery of this Sublease and other documents related to this transaction. (b) During the Sublease Term, the Subleased Property will at all times be used by the County for Open Space Purposes and any other lawful governmental functions related thereto in concert with the City’s use of the Property for Open Space Purposes as allowed under the terms of the Lease. The Parties agree to enter into a joint management arrangement for the joint and cooperative operation and maintenance of the Property. (c) Neither the execution and delivery hereof, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby conflicts with or results in a breach of the terms, conditions, or provisions of any restriction, or any agreement, or instruments to which the County is now a party or by which the County is bound, or constitutes a default under any of the foregoing, or, except as specifically provided in this Sublease, results in the creation or imposition of any lien or encumbrance whatsoever upon any of the property or assets of the County. (d) The County will not pledge or assign the Revenues or any of its other rights under this Sublease except that the County acknowledges and consents to the City’s assignment of the Sublease Rentals payable by the County hereunder to secure the Note, and the County will not mortgage or encumber the Subleased Property except for Permitted Encumbrances. (e) There is no litigation or proceeding pending or, to the knowledge of the County, threatened against the County or any other person affecting the right of the County to execute or deliver this Sublease, or to comply with its obligations under this Sublease. (f) This Sublease constitutes a legal, valid, and binding obligation of the County enforceable in accordance with its terms. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 327 of 607 Section 2.2. Representations, Covenants and Warranties of City. The City represents, covenants, and warrants for the benefit of the County as follows: (a) The City is a municipal corporation duly organized and existing as a home rule city under its Charter. The City is authorized by law to enter into the transactions contemplated by this Sublease and to carry out its obligations hereunder. The City has duly authorized and approved the execution and delivery of this Sublease and other documents related to this transaction. (b) The City will not pledge or assign the Revenues or any of its other rights under this Sublease except to secure the Note, and the City will not mortgage or encumber the Subleased Property except for Permitted Encumbrances. (c) Neither the execution and delivery hereof, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby conflicts with or results in a breach of the terms, conditions, and provisions of any restriction, or any agreement, or instrument to which the City is now a party or by which the City is bound, or constitutes a default under any of the foregoing and will not conflict with or constitute a violation of any constitutional or statutory provision or order, rule, regulation, decree or ordinance of any court, government, or governmental authority having jurisdiction over the City or its property, and which conflict or violation will have a material adverse effect on the City, the Subleased Property, or its operation. (d) The City acknowledges and recognizes that this Sublease will be terminated at the end of the Original Term or any Renewal Term in the event that sufficient funds are not budgeted and appropriated by the County, specifically with respect to this Sublease, to continue paying all Sublease Rentals during the next occurring Renewal Term. The acts of budgeting and appropriating funds are legislative acts and, as such, are solely within the discretion of the County. (e) There is no litigation or proceeding pending or, to the knowledge of the City, threatened against the City or any other person affecting the right of the City to execute or deliver this Sublease, or to comply with its obligations under this Sublease. (f) This Sublease constitutes a legal, valid, and binding obligation of the City enforceable in accordance with its terms. ARTICLE III DEMISING CLAUSE The City demises and subleases the Subleased Property to the County, and the County subleases the Subleased Property from the City, in accordance with the provisions of this Sublease, subject only to Permitted Encumbrances, to have and to hold for the Original Term and the Renewal Terms, if any. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 328 of 607 ARTICLE IV SUBLEASE TERM Section 4.1. Commencement of Sublease Term; Renewals. The Sublease Term shall commence as of __________, 2018. The Original Term shall terminate on December 31, 2018. The Sublease Term may be continued, solely at the option of the County, to the first Renewal Term for an additional year and for each of the additional Renewal Terms thereafter, each of one year in duration, except that the final Renewal Term, if any, shall commence on January 1, 2038, and shall terminate on __________, 2038. (a) In the event that the County shall determine, for any reason, not to renew this Sublease, the County shall give written notice to such effect to the City not less than 30 days prior to the end of the then current Original or Renewal Term; provided, however, that a failure to give such notice shall not constitute an Event of Default, nor prevent the County from declining to renew this Sublease, nor result in any liability on the part of the County. (b) The option of the County to renew or not to renew this Sublease shall be conclusively determined by whether or not the Board of County Commissioners has, on or before the December 31, immediately preceding the commencement of any Renewal Term, budgeted and appropriated, specifically with respect to this Sublease, moneys sufficient to pay all the Sublease Rentals for such ensuing Renewal Term, all as further provided in Section 6.6 of this Sublease. (c) It is the intention of the parties hereto that the decision to renew or not to renew this Sublease shall be made solely by the Board of County Commissioners and not by any other County officer. The County shall in any event, whether or not this Sublease is to be renewed, furnish the City with copies of its annual budget promptly after the budget is adopted. (d) The terms and conditions during any Renewal Term shall be the same as the terms and conditions during the Original Term, except that the Sublease Rentals shall be as provided in Exhibit B to this Sublease. Section 4.2. Termination of Sublease Term. The Sublease Term shall terminate upon the earliest of any of the following events: (a) the expiration of the Original Term or any Renewal Term during which there occurs an Event of Nonappropriation (which is not thereafter waived) pursuant to Article VI of this Sublease; (b) an Event of Default and termination of the Sublease Term under Article XIV of this Sublease; or (c) _______________, 2038, which date constitutes the last day of the final Renewal Term of this Sublease, or such later date as all Sublease Rentals required hereunder shall be paid. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 329 of 607 Termination of the Sublease Term shall terminate all obligations of the County under this Sublease and shall terminate the rights of the County to possession of the Subleased Property under this Sublease (except to the extent of any conveyance pursuant to Article XII of this Sublease). ARTICLE V ENJOYMENT OF SUBLEASED PROPERTY The City hereby covenants that the County shall during the Sublease Term peaceably and quietly have and hold and enjoy, on a nonexclusive basis with the City, the Subleased Property without suit, trouble, or hindrance from the City, except as expressly required or permitted by this Sublease. The City shall not interfere with the quiet use and enjoyment of the Subleased Property by the County, on a nonexclusive basis with the City, during the Sublease Term, so long as the Sublease Term shall be in effect. The City shall, at the request of the County and at the cost of the County, join and cooperate fully in any legal action in which the County asserts its right to such possession and enjoyment, or which involves the imposition of any taxes or other governmental charges on or in connection with the Subleased Property. In addition, the County may, at its own expense, join in any legal action affecting its possession and enjoyment of the Subleased Property and shall be joined (to the extent legally possible and at the expense of the County) in any action affecting its liabilities hereunder. Notwithstanding the foregoing, the Parties agree to enter into a joint management arrangement for the joint and cooperative operation and maintenance of the Property. ARTICLE VI PAYMENTS BY THE COUNTY Section 6.1. Payments To Constitute Currently Budgeted Expenditures of the County. The County and the City acknowledge and agree that the Sublease Rentals hereunder shall constitute currently budgeted expenditures of the County. The obligations of the County under this Sublease shall be from year to year only (as further provided in Sections 4.1, 4.2, 6.2 and 6.6 hereof) and shall not constitute a mandatory payment obligation of the County in any fiscal year beyond a fiscal year during which this Sublease shall be in effect. No provision of this Sublease shall be construed or interpreted as creati ng a general obligation or other indebtedness of the County within the meaning of any constitutional, statutory, or home rule debt limitation. No provision of this Sublease shall be construed or interpreted as creating a delegation of governmental powers nor as a donation by or a lending of the credit of the County within the meaning of Section 1 or 2 of Article XI of the Constitution of the State. This Sublease shall not directly or indirectly obligate the County to make any payments beyond those appropriated for any fiscal year in which this Sublease shall be in effect. No provision of this Sublease shall be construed to pledge or to create a lien on any class or source of County moneys, nor shall any provision of this Sublease restrict the future issuance of any County bonds or obligations payable from any class or source of County moneys. Section 6.2. Sublease Rentals. The County shall pay Sublease Rentals directly to the City during the Original Term and any Renewal Terms, on the due dates set forth in Exhibit B to Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 330 of 607 this Sublease. The Sublease Rentals during the Original Term and any Renewal Terms shall be in the amounts in the “Total Sublease Rentals” columns, as set forth in Exhibit B to this Sublease. The County’s payment of 50% of the Down Payment and the initial Sublease Rentals paid by the County on the date hereof, shall be in consideration for the use of the Subleased Property by the County from the time of delivery of this Sublease until December 31, 2018 on the terms set forth herein. Thereafter, Sublease Rentals due on the dates set forth in Exhibit B shall be in consideration for the use of the Subleased Property by the County from the immediately preceding January 1 to the immediately following December 31 on the terms set forth herein. Section 6.3. Disposition of Sublease Rentals. Upon receipt by the City of each payment of Sublease Rentals, the City shall apply the amount of such Sublease Rentals to payments due under the Lease for further payment of the Note. Section 6.4. Manner of Payment. The Sublease Rentals shall be paid in lawful moneys of the United States of America to the City at its principal office or by wire transfer pursuant to wiring instructions provided by the City. The obligation of the County to pay the Sublease Rentals required under this Article and other sections hereof, during the Sublease Term, shall be absolute and unconditional, and payment of the Sublease Rentals shall not be abated through accident or unforeseen circumstances. Notwithstanding any dispute between the City and the County, the County shall, during the Sublease Term, make all payments of Sublease Rentals when due and shall not withhold any Sublease Rentals pending final resolution of such dispute, nor shall the County assert any right of set-off or counterclaim against its obligation to make such payments required hereunder. No action or inaction on the part of the City shall affect the County’s obligation to pay the Sublease Rentals during the Sublease Term. Section 6.5. Expression of the County’s Intention To Acquire the Subleased Property: Determinations As to Fair Market Value and Fair Purchase Price. The County hereby declares its current intention to acquire the Subleased Property for Open Space Purposes. It is hereby declared to be the present intention and expectation of the County that this Sublease will be renewed annually until title to the Subleased Property is acquired by the City pursuant to the Lease and, if the City intends to exercise the purchase option in the Lease, the County shall have the right to further acquire the Subleased Property pursuant to this Sublease; but this declaration shall not be construed as contractually obligating or otherwise binding the County. The County and the City hereby agree and determine that based upon recent appraisals of the Subleased Property, the price to be paid for the Subleased Property represents the fair market value of the Subleased Property; that the Sublease Rentals hereunder during the Original Term and any Renewal Term represent the fair value of the use of the Subleased Property; and that the Purchase Option Price represents the fair purchase price of the Subleased Property. The County hereby determines that the Sublease Rentals do not exceed a reasonable amount so as to place the County under an economic or practical compulsion to renew this Sublease or to exercise its option to purchase the Subleased Property hereunder. In making such determinations, the County and the City have given consideration to the current appraised value of the Subleased Property, the uses and purposes for which the Subleased Property will be employed by the County, the benefit to the County by reason of the acquisition of the Subleased Property, and the use and occupancy of the Subleased Property pursuant to the terms and provisions of this Sublease, the option of the County to purchase the Subleased Property, and the expected eventual vesting of title to the Subleased Property in the County. The County hereby determines and declares that the acquisition of the Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 331 of 607 Subleased Property and the leasing of the Subleased Property pursuant to this Sublease will result in a Subleased Property of comparable quality and meeting the same requirements and standards as would be necessary if the acquisition of the Subleased Property were performed by the County other than pursuant to this Sublease. The County hereby determines and declares that the period during which the County has an option to purchase the Subleased Property (i.e., the maximum term of this Sublease, including all Renewal Terms) does not exceed the useful life of the Subleased Property. Section 6.6. Nonappropriation by the County. In the event that the Board of County Commissioners does not budget and appropriate, specifically with respect to this Sublease, on or before December 31 of each year, moneys sufficient to pay all Sublease Rentals coming due for the next ensuing Renewal Term, an Event of Nonappropriation shall be deemed to have occurred. If an Event of Nonappropriation occurs, the County shall immediately give notice to the City and shall not be obligated to make payment of the Sublease Rentals or any other payments provided for herein which accrue after the last day of the Original or Renewal Term during which such Event of Nonappropriation occurs; provided, however, that, subject to the limitations of Section 14.3 hereof, the County shall continue to be liable for Sublease Rentals allocable to any period during which the County shall continue to occupy the Subleased Property. The County shall in all events vacate the Subleased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs. Section 6.7. Right to Cure Events Under the Lease. Promptly after its adoption, the City shall provide to the County the City’s annual approval budget confirming that the City has appropriate funds for the next ensuing annual Base Rental payments. If a Lease Event of Nonappropriation or a Lease Event of Default shall have occurred under the Lease or event which, with the giving of notice or the passage of time or both would constitute a Lease Event of Default under the Lease, the City shall immediately give notice to the County (the “County Cure Notice”) whereupon the County shall have the right (i) in the event of a Lease Event of Nonappropriation, the County shall have a period of thirty (30) days following receipt of the County Cure Notice to make the payment of the Base Rentals for the applicable Renewal Term, in which event the Lease Event of Nonappropriation shall be deemed cured by the County or (ii) in the event of a Lease Event of Default, the County shall have a period of thirty (30) days following receipt of the County Cure Notice to initiate a cure of the events comprising the Lease Event of Default and to the extent that such cure is timely initiated and diligently pursued by the County as required pursuant to Section 13.5 of the Lease, then the Lease Event of Default shall be deemed cured by the County. Pursuant to Section 13.5 of the Lease, the Lessor agrees to accept a cure performance by the County (a “County Cure”) to the same extent as the City’s anticipated performance under the Lease. In the event of a County Cure, then the Lease and this Sublease shall continue for so long as either the City or the County (by virtue of a County Cure), pays the Base Rentals due under the Lease. Section 6.8. Final Apportionment. If (i) the County makes any Base Rental payments in connection with a County Cure under the Lease on behalf of the City and continues to timely pay the Sublease Rentals such that 100% of the Base Rental Payments are made under the Lease by the end of the Lease Term (as such term is defined in the Lease), or (ii) if the City pays the full Base Rentals but the County fails to pay all of the Sublease Rentals due from the County hereunder, Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 332 of 607 then, at the end of the Term of the Lease and payment in full of the Note, then each Party acknowledges and agrees that the each of them shall receive a proportionate undivided ownership interest in the Property based on the total proportionate share of total Base Rentals made by each Party. If at any point during the Lease Term, the City fails to make its Base Rental payments and the County does not elect to cure the same by effectuating a County Cure, then the County acknowledges that the Note shall be in default and the Property may be foreclosed to satisfy the amounts remaining due on the Note, whereupon this Sublease shall be terminated at the conclusion of such foreclosure. This Sublease is subordinate to the Deed of Trust and all sums due under the Note and the holder of the Note has no obligation to attorn to the County even if the County continues to pay the Sublease Rentals due under the Sublease. If the Lease is terminated and there is no County Cure preventing such termination, then this Sublease shall terminate concurrently with the termination of the Lease. ARTICLE VII ACQUISITION OF THE PROPERTY The City shall enter into the Lease on the date that the Corporation acquires fee title to the Property and shall concurrently enter into this Sublease for the sublease of the Subleased Property to the County. Fee title to the Subleased Property shall be held by the Corporation, subject only to the Lease and this Sublease, the Permitted Encumbrances and as otherwise provided in Article V hereof. ARTICLE VIII TITLE TO THE SUBLEASED PROPERTY LIMITATIONS ON ENCUMBRANCES Section 8.1. Title to the Subleased Property. Title to the Subleased Property and any and all permanent additions and modifications to or replacements of any portion of the Subleased Property shall be held in the name of the Corporation, subject only to Permitted Encumbrances and as otherwise provided in Article V hereof, until foreclosed on or conveyed as provided in Article XII of this Sublease, notwithstanding: (i) the occurrence of an Event of Nonappropriation as provided in Section 6.6 of this Sublease or one or more Events of Default as defined in Section 14.1 of this Sublease; (ii) the occurrence of any event of condemnation as provided in Article X of this Sublease; or (iii) the violation by the County or the City of any provision of this Sublease. The County shall have no right, title, or interest in the Subleased Property or any additions and modifications to or replacements of any portion of the Subleased Property, except as expressly set forth in this Sublease. Section 8.2. No Encumbrance, Mortgage, or Pledge of Subleased Property. Neither the City nor the County shall directly or indirectly create, incur, assume, allow or suffer to exist any mortgage, pledge, lien, charge, encumbrance, or claim on or with respect to the Subleased Property, except Permitted Encumbrances. The County shall promptly, at its own expense, take such action as may be necessary to duly discharge any such mortgage, pledge, lien, charge, encumbrance, or claim not excepted above which it shall have created, incurred, or suffered to exist. The City shall promptly, at its own expense, take such action as may be necessary to duly Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 333 of 607 discharge any such mortgage, pledge, lien, charge, encumbrance, or claim not excepted above which it shall have created or incurred or suffered to exist. ARTICLE IX MAINTENANCE, TAXES, INSURANCE, AND OTHER CHARGES Section 9.1. Use and Maintenance of the Subleased Property. The County agrees that, at all times during the Sublease Term, the County will use, maintain, preserve, and keep the Subleased Property or cause the Subleased Property to be used, maintained, preserved, and kept, with the appurtenances and every part and parcel thereof, in good repair, working order, and condition for Open Space Purposes in a joint manner with the City as may be required of the City under the terms of the Lease. The Parties agree to enter into a joint management arrangement for the joint and cooperative operation and maintenance of the Property. The Parties acknowledge and agree that their respective rights to use and enjoy the Subleased Property and the obligations for maintenance and operations thereof are undivided and apply equally to the whole of the Property leased by the Corporation to the City and the 50% interest therein comprising the Subleased Property subleased to the County hereunder. Accordingly, until such joint management agreement is executed setting forth the specific agreements with respect to the joint use and operation of the Property for Open Space Purposes, the Parties shall share equally in the rights, benefits and operational costs, expenses and liabilities related to their respective lease rights in the Property and their joint use and operation thereof, subject in each instance of a payment obligation under this Article IX, to sufficient funds being budgeted and appropriated therefor by the County and/or the City, as applicable. Section 9.2. Taxes, Other Governmental Charges, and Utility Charges. In the event that the Subleased Property or any portion thereof shall, for any reason, be deemed subject to taxation, assessments, or charges lawfully made by any governmental body, the County shall, during the Sublease Term, pay the amount of all such taxes, assessments, and governmental charges allocable thereto and the City shall pay the commensurate portion applicable to the remainder of the interest in the Property. With respect to special assessments or other governmental charges which may be lawfully paid in installments over a period of years, the County shall be obligated to provide only for such installments as are required to be paid during the Original or any Renewal Term as applicable to the Subleased Property. The County shall not allow any liens for taxes, assessments, or governmental charges to exist with respect to the Subleased Property or any portion thereof (including, without limitation, any taxes levied upon the Subleased Property or any portion thereof which, if not paid, will become a charge on the rentals and receipts from the Subleased Property or any portion thereof or any interest therein, including the interest of the City in the remainder of the Property), or the rentals and revenues derived therefrom or hereunder. The County may, at the expense and in the name of the County, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments, utility or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the City shall notify the County that, in the opinion of Independent Counsel, by nonpayment of any such items, the security afforded pursuant to the Deed of Trust of the City will be materially endangered or the Subleased Property or any portion Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 334 of 607 thereof will be subject to loss or forfeiture, or the City will be subject to liability, in which event such taxes, assessments, utility or other charges shall be paid forthwith (provided, however, that such payment shall not constitute a waiver of the right to continue to contest such taxes, assessments, utility or other charges). Section 9.3. Provisions Regarding Casualty, Public Liability, and Property Damage Insurance. Each of the County and the City shall cause casualty and property damage insurance to be carried and maintained with respect to their respective leasehold interests in and use of the Property. The County shall provide evidence of insurance with respect to the Subleased Property in an amount deemed necessary and reasonable by the County. The Parties agree to enter into a joint management arrangement for the joint and cooperative operation and maintenance of the Property which may include provisions for the placement of insurance over the Property or any portion thereof which shall take precedence over the insurance requirements of this Sublease. ARTICLE X CONDEMNATION If the Property or any portion thereof shall be taken by the exercise of the power of eminent domain, the County shall be obligated to continue to pay Sublease Rentals hereunder for the then current term of this Sublease (i.e., the Original Term or Renewal Term, as the case may be) as applicable to the Leased Portion of the Property so condemned. Any condemnation award shall be applied first to any Base Rentals when due, and any balance shall be paid to the City and the County as their interests may appear under the Lease and the Sublease or otherwise to the City to the extent that this Sublease has been terminated. ARTICLE XI DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 11.1. Disclaimer of Warranties. THE CITY MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OR FITNESS FOR USE OF THE SUBLEASED PROPERTY, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE SUBLEASED PROPERTY. Section 11.2. Further Assurances and Corrective Instruments. The City and the County agree that they will, from time to time, execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Subleased Property hereby leased or intended so to be, or for otherwise carrying out the intention hereof. Section 11.3. Lessor and County Representatives. Whenever under the provisions hereof the approval of the City or the County is required to take some action at the request of the other, unless otherwise provided, such approval or such request shall be given for the City by the City Representative, and for the County by the County Representative, and the City and the County shall be authorized to act on any such approval or request. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 335 of 607 Section 11.4. Compliance With Requirements. During the Sublease Term, the County and the City shall observe and comply promptly with all current and future orders of all courts having jurisdiction over the Subleased Property or any portion thereof, and all current and future requirements of all insurance companies writing policies covering the Subleased Property or any portion thereof. Section 11.5. County Acknowledgment of Note. The County approves, acknowledges, directs, and agrees to the issuance and sale of the Note. Section 11.6. Tax Covenants. The County covenants that it shall at all times do and perform all acts and things permitted by law and which are necessary or desirable in order to assure that interest paid by the Authority on the Note shall, for purposes of federal income taxation, n ot be includable in gross income under the Internal Revenue Code of 1986, as amended (the “Code”), or any other valid provision of law. In particular, but without limitation, the County further represents, warrants, and covenants that the Subleased Property will not be used in a manner which will cause the Note to be considered a “private activity bond” within the meaning of the Code. ARTICLE XII CONVEYANCE OF THE SUBLEASED PROPERTY Section 12.1. Conveyance of the Subleased Property. Subject at all times to the City’s rights to purchase the Property under the Lease, the County is hereby granted the option in the event that the City exercises its purchaser option under the Lease, to concurrently terminate the Sublease Term and to purchase the Subleased Property upon payment by the City of the then applicable Purchase Option Price; provided, however, that the Subleased Property will not be conveyed to the County until the conditions in Section 12.1(a) hereof have been satisfied. The City shall transfer and convey to the County the Subleased Property in the manner provided for in Section 12.2 of this Sublease; provided, however, that prior to such transfer and conveyance, either: (a) the County shall have paid the then applicable Purchase Option Price under this Sublease, all of the Base Rentals shall have been paid for the original term and all renewal terms under the Lease and the Note shall have been paid in full; or (b) the County shall have paid all Sublease Rentals set forth in Exhibit B hereto, for the Original Term and all Renewal Terms, all of the Base Rentals shall have been paid for the original term and all renewal terms under the Lease and the Note shall have been paid in full. Any conveyance of the Subleased Property shall be subject to Sections 6.6, 6.7 and 6.8 hereof such that the resulting allocable percentage of ownership being conveyed to each of the Parties accurately reflects the total payments made by each Party. Section 12.2. Manner of Conveyance. At the closing of any purchase or other conveyance of the Subleased Property pursuant to Section 12.1 of this Sublease, the City shall execute and deliver to the County all necessary documents assigning, transferring, and conveying an undivided interest in good and marketable title to the Property in the percentage of the Subleased Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 336 of 607 Property or such other proportionate percentage as calculated pursuant to Section 6.8, subject to the following: (i) Permitted Encumbrances, other than the Lease, this Sublease and the Deed of Trust and any Financing Statements (as such shall be released upon the payment in full of the Note); (ii) all liens, encumbrances, and restrictions created or suffered to exist by the City as required or permitted by this Sublease, or the Deed of Trust, or arising as a result of any action taken, or omitted to be taken, by the City as required or permitted by this Sublease or the Deed of Trust; (iii) any lien or encumbrance created by action of the City; and (iv) those liens and encumbrances (if any) to which title to the Subleased Property was subject when conveyed to the City. ARTICLE XIII PLEDGE, SUBLEASING, MORTGAGING, AND COVENANTS Section 13.1. Pledge. The parties hereto agree that the City shall be entitled to pledge this Sublease and the Sublease Rentals and remedies hereunder as security for the Note. Section 13.2. Assignment and Subleasing. This Sublease may not be assigned by the County or the City for any reason without the prior written consent of the other Party acting in its sole discretion. Section 13.3. No Negligence. The County hereby covenants for the benefit of the City not to act negligently in connection with the Subleased Property. The City hereby covenants for the benefit of the County not to act negligently in connection with the Subleased Property. Section 13.4. Restriction on Mortgage or Transfer of Subleased Property. The County and the City agree that, except for: (i) the pledge by the City of this Sublease as security for the Note and mortgaging of the Subleased Property by the Corporation pursuant to the Deed of Trust, which are hereby authorized and acknowledged; (ii) any exercise by the Public Trustee under such Deed of Trust or the City of the remedies afforded by this Sublease; and (iii) any conveyance to the County pursuant to Article XII of this Sublease; neither the City nor the County will mortgage, assign, transfer, or convey its interest in the Subleased Property or any portion thereof during the Sublease Term. ARTICLE XIV EVENTS OF DEFAULT AND REMEDIES Section 14.1. Events of Default by County Defined. Any one of the following shall be “Events of Default” by the County under this Sublease: (a) failure by the County to pay any Sublease Rentals during the Sublease Term for a period of 25 days after written notice specifying such failure and requesting that it be remedied, shall be received by the County from the City; or (b) failure by the County to vacate the Subleased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs; or Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 337 of 607 (c) failure by the County to observe and perform any covenant, condition, or agreement on its part to be observed or performed, other than as referred to in (a) or (b), for a period of 45 days after written notice, specifying such failure and requesting that it be remedied, shall be given to the County by the City, unless the City shall agree in writing to an extension of such time prior to its expiration; provided, however, that if the failure stated in the notice cannot be corrected within the applicable period, the City shall not withhold its consent to an extension of such time, if corrective action shall be instituted by the County within the applicable period and diligently pursued until the default is corrected. The foregoing provisions of this Section are subject to the following limitations: (i) the County shall be obligated to pay the Sublease Rentals only during the Sublease Term, except as otherwise expressly provided in this Sublease; and (ii) if, by reason of Force Majeure, the County shall be unable, in whole or in part, to carry out any agreement on its part herein contained, other than the obligations on the part of the County contained in Article VI of this Sublease, the County shall not be deemed in default during the continuance of such inability. The County agrees, however, to remedy, as promptly as legally and reasonably possible, the cause or causes preventing the County from carrying out its agreement; provided that the settlement of strikes, lockouts, and other industrial disturbances shall be entirely within the discretion of the County. Section 14.2. Remedies on Default. Whenever any Event of Default referred to in Section 14.1 of this Sublease shall have happened and be continuing, the City may terminate the Sublease Term and may give notice to the County to vacate the Subleased Property within 15 days from the date of such Event of Default. After the occurrence of an Event of Default, the City shall be entitled to take one or any combination of the following additional remedial steps: (a) Terminate this Sublease; (b) Recover from the County the portion of Sublease Rentals which would otherwise have been payable hereunder, allocable to any period in which the County continues to occupy the Subleased Property; and/or (c) Not terminate this Sublease and take whatever action at law or in equity may appear necessary or desirable to enforce its right in and to the Subleased Property under this Sublease; provided that no Sublease Rentals shall be due or collectible for any year in which both (i) an Event of Nonappropriation occurs and, (ii) the County is not in possession of any portion of the Subleased Premises. Section 14.3. Limitations on Remedies. A judgment requiring a payment of money may be entered against the County by reason of an Event of Default only as to the County’s liabilities described in paragraph (b) of Section 14.2 of this Sublease. A judgment requiring a payment of money may be entered against the County by reason of an Event of Nonappropriation only to the extent that the County fails to vacate the Subleased Property as required by Section 6.6 of this Sublease, and only as to the liabilities described in paragraph (b)(i) of Section 14.2 of this Sublease. Notwithstanding paragraph (b)(ii) of Section 14.2 of this Sublease, any Event of Default consisting of failure by the County to vacate the Subleased Property by the expiration of the Original or Renewal Term during which an Event of Nonappropriation occurs shall not result in any liability Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 338 of 607 for Sublease Rentals allocable to any period other than the period in which the County continues to occupy the Subleased Property. Section 14.4. No Remedy Exclusive. Subject to Section 14.3 hereof, no remedy herein conferred upon or reserved to the City is intended to be exclusive, and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, and the same may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City to exercise any remedy reserved in this Article, it shall not be necessary to give any notice, other than such notice as may be required in this Article. Section 14.5. Waivers. In the event that any agreement contained herein should be breached by either Party and thereafter waived by the other Party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. Section 14.6. Agreement To Pay Attorneys’ Fees and Expenses. In the event that either Party hereto shall default under any of the provisions hereof and the nondefaulting Party shall employ attorneys or incur other expenses for the collection of Sublease Rentals, or the enforcement of performance or observance of any obligation or agreement on the part of the defaulting Party herein contained, the defaulting Party agrees that it shall pay on demand therefor to the nondefaulting Party the fees of such attorneys and such other expenses so incurred by the nondefaulting Party, to the extent that such attorneys’ fees and expenses may be determined to be reasonable by a court of competent jurisdiction. Section 14.7. Waiver of Appraisement, Valuation, Stay, Extension, and Redemption Laws. The City and the County agree, to the extent permitted by law, that in th e case of a termination of the Sublease Term by reason of an Event of Nonappropriation or an Event of Default, neither the City, nor the County, nor any one claiming through or under either of them shall or will set up claim or seek to take advantage of an y appraisement, valuation, stay, extension, or redemption laws now or hereafter in force in order to prevent or hinder the enforcement of the Indenture; and the City and the County, for themselves and all who may at any time claim through or under either of them, each hereby waives, to the full extent that it may lawfully do so, the benefit of all such laws. Section 14.8. Default by the City; Remedies. In the event that the City fails to comply with or perform any of its covenants herein made for the benefit of the C ounty hereunder, then the County shall give the City written notice thereof specifying the alleged failure, whereupon the City shall have a period of 45 days after the date of such notice to cure the failure; provided, however, if the failure cannot be cured or otherwise corrected within such 45 days, then the cure period shall be extended so long as the cure by the City is initiated within said initial 45-day period and is diligently pursued by the City until the default is corrected. If the City fails to cure said default then the County shall have the right to (i) terminate this Sublease at the end of the applicable Renewal Term; or (ii) not terminate this Sublease and enforce this Sublease and the defaulted terms thereof against the City in a court of law. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 339 of 607 Section 14.9. Limitation of Damages. In no event shall either Party be liable for any indirect, special, consequential or exemplary damages hereunder. Any damages incurred by a third party in connection with such third party’s use of the Subleased Property shall, to the extent imposed by a court of competent jurisdiction or otherwise agreed, be shared equally by the Parties unless such damage was (i) caused by one Party or (ii) insured against under any insurance policy maintained by the Party which caused the damage. ARTICLE XV MISCELLANEOUS Section 15.1. Notices. All notices, certificates, or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by certified or registered mail, postage prepaid, as follows: If to the City: Municipal Building, 1777 Broadway, Boulder, Colorado 80302, Attention: City Attorney; and if to the County: Director, Jefferson County Open Space, 700 Jefferson County Parkway, Golden, Colorado 80401. The City and the County may, by written notice, designate any further or different addresses to which subsequent notices, certificates, or other communications shall be sent. Section 15.2. Binding Effect. This Sublease shall inure to the benefit of and shall be binding upon the City and the County and their respective successors and assigns, subject, however, to the limitations contained in Article XIII of this Sublease. Section 15.3. Amendments, Changes and Modifications. Except as otherwise provided in this Sublease, subsequent to the delivery of the Note and prior to their payment i n full, this Sublease may not be effectively amended, changed, modified, or altered without the written consent of the Note Holder. Section 15.4. Net Lease. This Sublease shall be deemed and construed to be a “net lease”, and the County shall pay absolutely net durin g the Sublease Term, the Sublease Rentals, free of any deductions, and without abatement, deduction, or setoff including, without limitation, any setoff for costs of operations and maintenance. Section 15.5. Payments Due on Holidays. If the date for making any payment, or the last day for performance of any act, or the exercising of any right, as provided in this Sublease, shall be a legal holiday or a day on which banking institutions in the County in which the principal office of the City is located are authorized by law to remain closed, such payment may be made, or act performed, or right exercised on the next succeeding day that is not a legal holiday or a day on which such banking institutions are not authorized by law to remain closed with the same force and effect as if done on the nominal date provided in this Sublease. Section 15.6. Severability. In the event that any provision of this Sublease, other than the requirement of the County to pay Sublease Rentals and the requirement of the City to provide quiet enjoyment of the Subleased Property and to convey the Subleased Property to the County under the conditions set forth in Article XII of this Sublease, shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 340 of 607 Section 15.7. Execution in Counterparts. This Sublease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 15.8. Applicable Law. This Sublease shall be governed by and construed in accordance with the laws of the State. Section 15.9. Captions. The captions of headings herein are for convenience only and in no way define, limit, or describe the scope or intent of any provisions or sections of the Lease. [Remainder of page intentionally left blank] Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 341 of 607 IN WITNESS WHEREOF, the Parties have executed this Sublease as of the date set forth above. COUNTY OF JEFFERSON, STATE OF COLORADO, a body politic and corporate By Chair STATE OF COLORADO ) ) ss. COUNTY OF JEFFERSON ) The foregoing instrument was acknowledged before me this _____ day of __________, 20___ by ____________________, Chair of the Board of County Commissioners of the County of Jefferson, State of Colorado. [SEAL] Notary Public, State of Colorado APPROVED AS TO FORM: Steven L. Snyder Senior Assistant County Attorney CITY OF BOULDER, a Colorado home rule City By Jane S. Brautigam, City Manager Attest: City Clerk Approved as to form: City Attorney Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 342 of 607 EXHIBIT A LEGAL DESCRIPTION Parcel 1: The Southeast ¼ of the Southeast ¼ of Section 36, Township 1 South, Range 71 West of the 6th P.M., County of Boulder, State of Colorado. Parcel 2: That part of the Northeast ¼ lying West of and adjoining the West line of the Denver & Salt Lake Rail Road right-of-way as described in Book 126 at Page 113, Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado. Parcel 3: The Northeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except so much thereof as lies West of the East line of railroad right of way as shown by deed recorded in Book 126 at Page 113, Jefferson County, Colorado records. Parcel 4: The South ½ of the South ½ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado and the Northwest ¼ of the Southwest ¼ of Section 6, Township 2 South, Range 70 West of the 6th P.M., County of Jefferson, State of Colorado; and The Southeast ¼ of Section 1, Township 2 South, Range 71 West of the 6th P.M., County of Jefferson, State of Colorado, Except that portion of said Section 1 conveyed to The Denver Northwestern and Pacific Railway Company by the Quit Claim Deed recorded January 19, 1903 in Book 121 at Page 180, of the Jefferson County, Colorado records, and Except those portions of said Sections 1 and 6 conveyed to Katherine T. O’Connor by the Warranty Deed recorded October 26, 193 in Book 347 at Page 159, of the Jefferson County, Colorado records. Parcel 5: A non-exclusive easement for ingress and egress purposes over and across the Northwest ¼ of Section 7, Township 2 South, Range 70 West of the 6th P.M., Jefferson County, Colorado, said easement being over an existing access road and being 20 feet on each side of the following described centerline: Beginning at a point on the North line of said Northwest ¼ of Section 7, from which point the Northwest corner of Section 7 bears North 88°46’26” West, a distance of 784.09 feet; thence Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 343 of 607 along said centerline the following courses and distances: South 59°43’29” East, a distance of 5.41 feet to a point of curve; thence along a curve to the left having a radius of 143.37 feet, a central angle of 19°47’00”, an arc distance of 49.50 feet to a point of tangency; thence South 79°30’29” East, a distance of 155.12 feet to a point of curve; thence along a curve to the right having a radius of 316.01 feet, a central angle of 10°50’45”, an arc distance of 59.82 feet to a point of tangency; thence South 68°39’43” East, a distance of 111.37 feet to a point of curve; thence along a curve to the right having a radius of 227.37 feet, a central angle of 19°57’19”, an arc distance of 79.19 feet to a point of tangency; thence South 48°42’24” East, a distance of 238.34 feet to a point of curve; thence along a curve to the left having a radius of 401.68 feet, a central angle of 16°59’28”, an arc distance of 119.12 feet to a point of tangency; thence South 65°41’53” East, a distance of 240.47 feet to a point of curve; thence along a curve to the right having a radius of 102.46 feet, a central angle of 60°42’17”, an arc distance of 108.56 feet to a point of tangency, said point being on the existing centerline of a road deeded to Jefferson County on August 6, 1935, by deed recorded in Book 374 at Page 140, and from which point the Northwest corner of Section 7 bears North 72°14’59” West, a distance of 1862.34 feet. Also including any and all water rights appurtenant to or used in connection with the Property, including storage rights and any and all mineral rights, including but not limited to, sand, gravel, coal, and oil, gas, and other hydrocarbons in, under, and that may be produced from the lands described herein. Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 344 of 607 EXHIBIT B SCHEDULE OF SUBLEASE RENTALS [DATE] Total Sublease Rental Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 345 of 607 EXHIBIT C ENCUMBRANCES Attachment H - Sublease Agreement Item 3M - Lippincott BMPA City Council Meeting Page 346 of 607 CITY OF BOULDER 2016-2023 PROPOSED BUDGET OPEN SPACE FUND 2017 2018 2019 2020 2021 2022 2023 2024 Actuals Approved Recommended Projected Projected Projected Projected Projected Beginning Fund Balance 42,674,844$ 40,624,442$ 14,497,645$ 15,449,192$ 12,553,862$ 10,722,299$ 9,694,595$ 9,477,707$ Sources of Funds Net Sales Tax Revenue 29,766,020$ 29,135,223$ 25,728,383$ 20,992,284$ 21,272,691$ 21,601,090$ 21,935,541$ 22,276,158$ Anticipated FEMA Flood Reimbursement 1,725,750 1,531,329 1,500,000 - - - - - Investment Income 330,048 335,362 342,405 348,191 354,076 360,060 366,145 372,332 Lease and Miscellaneous Revenue 922,147 1,063,899 1,095,816 1,128,690 1,162,551 1,197,428 1,233,351 1,270,351 Voice & Sight Tag Program Revenue 127,000 127,000 127,000 127,000 127,000 127,000 127,000 127,000 General Fund Transfer 1,209,590 1,138,820 1,138,820 - - - - - Grants - - - - - - - - Total Sources of Funds 34,080,556$ 33,331,633$ 29,932,424$ 22,596,166$ 22,916,318$ 23,285,577$ 23,662,036$ 24,045,841$ Uses of Funds General Operating Expenditures -$ -$ Office of the Director 1,775,410 2,019,237 1,731,423 1,529,846 1,545,145 1,560,596 1,576,202 1,591,964 Central Services 2,812,917 2,892,094 2,571,015 2,546,725 2,572,192 2,597,914 2,573,893 2,599,632 Community Connections & Partnerships 4,168,196 4,539,253 4,371,032 4,364,742 4,214,390 4,110,332 4,039,209 3,976,148 Resources & Stewardship 4,195,052 4,438,798 4,333,186 4,249,590 4,292,085 4,223,006 4,265,236 4,307,889 Trails & Facilities 4,564,736 4,703,173 5,315,205 5,318,357 4,656,540 4,703,106 4,750,137 4,797,638 Carryover/ATB Operating - 5,287,331 - - - - - - Cost Allocation 1,903,344 1,960,444 2,090,102 2,142,355 2,195,913 2,250,811 2,307,082 2,422,436 CIP- Capital Enhancement 6,360,358 3,050,000 180,000 180,000 180,000 180,000 180,000 180,000 CIP- Capital Maintenance 1,492,126 1,057,300 2,770,000 1,570,000 1,570,000 1,270,000 1,270,000 1,270,000 CIP- Capital Planning Studies 98,028 100,000 130,000 130,000 130,000 130,000 130,000 130,000 CIP- New Facility/Infrastructure --- --- CIP- Land Acquisition 3,296,111 24,172,485 1,653,736 1,653,736 1,653,736 1,553,736 1,053,736 1,053,736 Lippincott Ranch 775,000 Other 2018 Approved Acquisition Expense 16,256,675 Remaining Land Acquisition Capital Available 7,140,810 Transfer to BMPA 1,002,209 767,597 1,153,791 1,153,791 1,084,424 1,084,424 1,084,424 490,769 Debt Service - Bonds & Notes 4,462,469 4,470,719 2,681,388 652,356 653,456 649,356 649,006 648,431 Total Uses of Funds 36,130,957$ 59,458,430$ 28,980,876$ 25,491,496$ 24,747,881$ 24,313,281$ 23,878,924$ 23,468,642$ Ending Fund Balance Before Reserves 40,624,443$ 14,497,645$ 15,449,192$ 12,553,862$ 10,722,299$ 9,694,595$ 9,477,707$ 10,054,907$ Reserves OSBT Contingency Reserve 4,976,867$ 5,158,263$ 4,849,428$ 4,391,552$ 3,818,546$ 2,753,341$ 2,336,971$ 2,708,538$ OSMP Campus Vision 3,000,000 3,000,000 4,000,000 4,200,000 4,200,000 4,200,000 4,200,000 4,500,000 Pay Period 27 Reserve 330,119 354,440 378,762 403,083 427,404 451,726 476,047 500,368 Sick/Vacation/Bonus Reserve 490,000 490,000 490,000 490,000 490,000 490,000 490,000 490,000 Property and Casualty Reserve 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 FEMA De-obligation Reserve 227,445 377,945 383,488 383,488 383,488 383,488 383,488 383,488 Total Reserves 9,424,431$ 9,780,648$ 10,501,678$ 10,268,123$ 9,719,438$ 8,678,555$ 8,286,506$ 8,982,394$ Ending Fund Balance After Reserves 31,200,012$ 4,716,997$ 4,947,514$ 2,285,739$ 1,002,861$ 1,016,040$ 1,191,202$ 1,072,513$ Revenue projections 97.56%97.80%89.80%75.49%101.42%101.61%103.11%103.11% OPEN SPACE AND MOUNTAIN PARKS ATTACHMENT I-1 Item 3M - Lippincott BMPA City Council Meeting Page 347 of 607 CITY OF BOULDER 2016-2023 PROPOSED BUDGET OPEN SPACE FUND 2017 2018 2019 2020 2021 2022 2023 2024 Actuals Approved Recommended Projected Projected Projected Projected Projected Beginning Fund Balance 42,674,844$ 40,624,442$ 14,497,645$ 15,694,576$ 13,044,630$ 11,458,452$ 10,676,132$ 10,704,629$ Sources of Funds Net Sales Tax Revenue 29,766,020$ 29,135,223$ 25,728,383$ 20,992,284$ 21,272,691$ 21,601,090$ 21,935,541$ 22,276,158$ Anticipated FEMA Flood Reimbursement 1,725,750 1,531,329 1,500,000 - - - - - Investment Income 330,048 335,362 342,405 348,191 354,076 360,060 366,145 372,332 Lease and Miscellaneous Revenue 922,147 1,063,899 1,095,816 1,128,690 1,162,551 1,197,428 1,233,351 1,270,351 Voice & Sight Tag Program Revenue 127,000 127,000 127,000 127,000 127,000 127,000 127,000 127,000 General Fund Transfer 1,209,590 1,138,820 1,138,820 - - - - - Grants - - - - - - - - Total Sources of Funds 34,080,556$ 33,331,633$ 29,932,424$ 22,596,166$ 22,916,318$ 23,285,577$ 23,662,036$ 24,045,841$ Uses of Funds General Operating Expenditures -$ -$ Office of the Director 1,775,410 2,019,237 1,731,423 1,529,846 1,545,145 1,560,596 1,576,202 1,591,964 Central Services 2,812,917 2,892,094 2,571,015 2,546,725 2,572,192 2,597,914 2,573,893 2,599,632 Community Connections & Partnerships 4,168,196 4,539,253 4,371,032 4,364,742 4,214,390 4,110,332 4,039,209 3,976,148 Resources & Stewardship 4,195,052 4,438,798 4,333,186 4,249,590 4,292,085 4,223,006 4,265,236 4,307,889 Trails & Facilities 4,564,736 4,703,173 5,315,205 5,318,357 4,656,540 4,703,106 4,750,137 4,797,638 Carryover/ATB Operating - 5,287,331 - - - - - - Cost Allocation 1,903,344 1,960,444 2,090,102 2,142,355 2,195,913 2,250,811 2,307,082 2,422,436 CIP- Capital Enhancement 6,360,358 3,050,000 180,000 180,000 180,000 180,000 180,000 180,000 CIP- Capital Maintenance 1,492,126 1,057,300 2,770,000 1,570,000 1,570,000 1,270,000 1,270,000 1,270,000 CIP- Capital Planning Studies 98,028 100,000 130,000 130,000 130,000 130,000 130,000 130,000 CIP- New Facility/Infrastructure --- --- CIP- Land Acquisition 3,296,111 24,172,485 1,653,736 1,653,736 1,653,736 1,553,736 1,053,736 1,053,736 Lippincott Ranch 375,000 Other 2018 Approved Acquisition Expense 16,256,675 Remaining Land Acquisition Capital Available 7,540,810 Transfer to BMPA 1,002,209 767,597 908,406 908,406 839,039 839,039 839,039 245,384 Debt Service - Bonds & Notes 4,462,469 4,470,719 2,681,388 652,356 653,456 649,356 649,006 648,431 Total Uses of Funds 36,130,957$ 59,458,430$ 28,735,492$ 25,246,112$ 24,502,496$ 24,067,897$ 23,633,540$ 23,223,257$ Ending Fund Balance Before Reserves 40,624,443$ 14,497,645$ 15,694,576$ 13,044,630$ 11,458,452$ 10,676,132$ 10,704,629$ 11,527,213$ Reserves OSBT Contingency Reserve 4,976,867$ 5,158,263$ 4,800,351$ 4,342,475$ 4,193,752$ 3,558,807$ 3,569,967$ 4,117,904$ OSMP Campus Vision 3,000,000 3,000,000 4,000,000 4,200,000 4,200,000 4,200,000 4,200,000 4,500,000 Pay Period 27 Reserve 330,119 354,440 378,762 403,083 427,404 451,726 476,047 500,368 Sick/Vacation/Bonus Reserve 490,000 490,000 490,000 490,000 490,000 490,000 490,000 490,000 Property and Casualty Reserve 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 FEMA De-obligation Reserve 227,445 377,945 383,488 383,488 383,488 383,488 383,488 383,488 Total Reserves 9,424,431$ 9,780,648$ 10,452,601$ 10,219,046$ 10,094,644$ 9,484,021$ 9,519,502$ 10,391,760$ Ending Fund Balance After Reserves 31,200,012$ 4,716,997$ 5,241,975$ 2,825,584$ 1,363,808$ 1,192,111$ 1,185,127$ 1,135,452$ Revenue projections 97.56%97.80%89.80%75.49%101.42%101.61%103.11%103.11% OPEN SPACE AND MOUNTAIN PARKS ATTACHMENT I-2 Item 3M - Lippincott BMPA City Council Meeting Page 348 of 607 C I T Y C O U N C I L AGE N D A I T E M C O VE R SHE E T ME E T I N G D AT E : September 4, 2018 AG E N D A T I T L E C onsideration of a motion to accept the Library Master Plan and Amend the Boulder Valley C omprehensive Plan to Update the Library Master Plan Summary P RI MARY STAF F C ON TAC T J ennifer Phares, Deputy Library Director RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E C onsideration of a motion to accept the Library Master Plan and Amend the Boulder Valley C omprehensive Plan to Update the Library Master Plan Summary AT TAC H ME N T S: Description Memo and Attachments City Council Meeting Page 349 of 607 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: September 4, 2018 EXECUTIVE SUMMARY The 2018 Boulder Public Library Master Plan is a strategic document to guide the quality and delivery of library services in a manner consistent with the City of Boulder sustainability goals, climate commitment and resilience strategy. Extensive public engagement and commission involvement in this master plan process has clarified the library’s role in serving the community. The plan outlines community-driven goals for the next ten years (Attachment A – 2018 Boulder Public Library Master Plan). It is designed to serve as guide for how the library sustains outputs, meets growing demand, and builds a resilient and sustainable future. It identifies two key development priorities to: •Strategically address ongoing growth in demand and future needs identified for the entire community with specific focus on youth as well as underserved community members and neighborhoods. •Sustain quality service and current service level needs (created by past growth in demand) with adequate funding and address a backlog of facilities maintenance. AGENDA TITLE: Consideration of a motion to accept the 2018 Boulder Public Library Master Plan and approve the Boulder Valley Comprehensive Plan Library Master Plan Summary PRESENTER/S Jane S. Brautigam, City Manager Tanya Ange, Deputy City Manager David Farnan, Library and Arts Director Jennifer Phares, Deputy Library Director & Master Plan Project Manager Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 350 of 607 STAFF RECOMMENDATION Suggested Motion Language: Staff requests council consideration of this matter and action in the form of the following motion: Motion to accept the 2018 Boulder Public Library Master Plan and approve the Boulder Valley Comprehensive Plan Library Master Plan Summary. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS •Economic – The library plays a vital role in the community’s economic sustainability. Through careful stewardship of its resources and by adapting programs, services, and policies, it helps to address many fundamental community needs. The library provides equal access to information resources and tools so that community members can develop their skills, find jobs, start businesses, and participate in civic life. •Environmental - The library not only supports the community’s values and goals for environmental sustainability through its facilities locations, design, building systems, and maintenance practices; it provides a platform for the community to learn about and discuss environmental issues and new practices. •Social – S ocial sustainability is central to the library’s mission, vision, guiding principles and master plan goals. The library is a trusted institution, an inclusive place that values diversity with equal access for everyone. It’s a place for the community to come together – a place where everyone is welcome. OTHER IMPACTS •Fiscal - The master plan outline goals and objectives prioritized by three levels of funding (Attachment A, page 36). •Maintaining service levels (fiscally constrained funding level) is based on making the most of existing resources with the primary goal of the department to maintain service level and quality. It requires an estimated $461,000 in operational funding more than the 2018 budget and an estimated $4.7 million in capital and one-time funding, primarily to address a facilities maintenance backlog. •Addressing community demand (action funding level) includes strategically enhancing existing programs, beginning new alternative programs, and addressing 2007 Library Master Plan vision plan goals that were not accomplished. Funding this level requires $1.9 million in operational funds and a minimum of $6.3 million in capital and one-time funds. These are in addition to the amounts required by the fiscally constrained funding level. •Service expansion (vision funding level) represents new programs, services and facilities identified through community input that were not included in the previous master pla n. It requires $824,000 in operational funding and $586,000 in capital and one-time funding in addition to the amounts of the previous two levels. The total amount of additional operational funding needed to implement all master plan goals is estimated to be between $3 and $3.5 million. A minimum of $11.6 million in capital and Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 351 of 607 one-time funding is needed to implement all master plan goals. Subtracting the capital and one-time funds available to implement the north Boulder branch library and Gunbarrel corn er library goals, the amount of capital and one-time funding needed is estimated to be a minimum of $4.3 million. •Staff time - Implementation of the master plan will be part of the library’s annual work plan, as outlined in part 6 (Attachment A, page 85). BOARD AND COMMISSION FEEDBACK The Library Commission has been instrumental in shaping the policy and direction of this master plan through discussions at regular meetings that began in 2015 and during several study sessions held during the past three years. The Library Commission endorsed the 2018 Boulder P ublic Library Master Plan on June 6, 2018. A foreword with the Library Commission’s conclusions and recommendations is included in the master plan (Attachment A, pages 5-8). On August 16, 2018, the Planning Board discussed the master plan. On a motion by J. Gerstle, seconded by C. Gray, the Planning Board voted 7-0 to recommend to City Council for acceptance of the Boulder Public Library Master Plan. On a motion by H. Zuckerman, seconded by D. Ensign, the Planning Board voted 7-0 to approve the Boulder Valley Comprehensive Plan, Boulder Public Library Master Plan summary. See Attachment B - August 16, 2018 Planning Board Minutes. City Council provided input on the master plan process and discussed options to fund the goals at a Nov. 28, 2017 Study Session (Attachment C - Nov. 28, 2017 City Council Study Session Summary). In an April 12, 2018 information packet memo, staff provided preliminary library operating and capital funding needs and financing options (Attachment D - April 12, 2018 IP memo). During the July 24, 2018 Study Session, council generally supported the library master plan goals and requested additional information about options to fund the goals and informat ion about forming a library district (Attachment E - July 24, 2018 City Council Study Session Summary). Based on feedback from the city’s master plan committee, the Planning Board and council, the draft master plan document layout was adjusted in several places to improve the flow, several tables were annotated for clarification, and some content was revised to include information referencing Boulder Valley Comprehensive Plan population growth (Attachment A, pages 30-33) and additional information and graphs were included summarizing financial needs additive by funding level priority (Attachment A, pages 75-78). PUBLIC FEEDBACK The foundational component of the master plan was the community engagement process (Attachment A. pages 38-39 and 90-105). It was designed to encourage participation and collaboration. The community’s input confirmed the library’s core values and provided a framework for the goals (Attachment A. pages 36-63). BACKGROUND The Boulder Valley Comprehensive Plan (BVCP) provides the overall policy framework for department master plans, including a general statement of the community’s long -term desired future. Master plans establish specific, detailed policies; priorities; service standards; operating and capital Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 352 of 607 needs for the delivery of services. The 2018 Boulder Public Library Master Plan is an update to the 2007 library master plan. It outlines community-driven goals and prioritized high-level objectives, provides standards for evaluating programs and services, and an implementation strategy that is connected to the annual city budg et process. It is intended to guide resource allocation in response to the community’s needs and interests and inform the annual department work plan priorities. ANALYSIS Staff and the Library Commission updated the library’s mission and guiding principles as part of the master plan process. The mission and guiding principles reflect the community’s expectations of the library. Boulder Public Library Mission Connecting people, ideas, and information to transform lives and strengthen our community. Boulder Public Library Guiding Principles The guiding principles inform decisions for resource allocation, priority of implementing the goals, and evaluating recommendations for new programs or services that arise during the next 10 years. Provide inclusive access We strive to create convenient and equitable access for the community through our physical spaces, services and onsite and offsite programs. Our libraries are welcoming to all: safe, clean and well-maintained facilities. Promote all forms of literacy We create opportunities for the development of literacy skills needed to understand, interpret, create, communicate, and compute in our world. Foster personal development and self-sufficiency We support life-long learning for all ages to create a more resilient community and empower individual growth. Support and sustain an inspired, engaged, and informed community We cultivate an informed community by providing resources and facilities to encourage civic dialogue and create a forum that connects people and ideas. Form strong partnerships and leverage community resources We value the work and expertise of our community, volunteers, and the Boulder Library Foundation and seek beneficial relationships that e nhance the programs, services, and financial stability of the library. Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 353 of 607 Reach out and respond to our diverse community We evolve with our community. The library will continually engage with the community to develop programs and services that are relevant t o their needs. Maintain high-quality programs and services We give priority to maintaining high-quality programs and services that are impactful or have strong participation before expanding our offerings. Using these to guide decision making will ensure available resources are used to address the community’s highest priorities. Master Plan Goals The community needs assessment and engagement process shaped the development of the master plan goals and objectives. The master plan goals are organized within four areas. Goal Areas 1.Programs and Services; 2.Facilities and Technology; 3.Building Community and Partnerships; and 4.Organizational Readiness. Sustainability Framework Alignment These goal areas were assessed for alignment to the Sustainability Framework to ensure they complement and advance the priorities of the City Council and community. Some examples of this alignment include: Safe Community: BPL is committed to providing safe and welcoming facilities by employing adequate staff, security services, technology that protect the rights, health, and safety of library patrons, staff, and volunteers and ensure patrons’ use and enjoyment of the library (Attachment A, pages 48-49). Healthy and Socially Thriving Community: BPL is committed to the idea that it must build strategic partnerships to leverage community expertise to expand its program offerings in a cost - effective way and respond to the community’s desire for more programs and opportunities to engage in meaningful, productive dialogue with their fellow community members. It will do this by supporting the community through opportunities and facilitation for civic engagement and dialogue and engaging in meaningful discussions, gathering input, and acting in partnership with other agencies to support community-wide growth and transformation. (Attachment A, pages 54-55). Environmentally Sustainable Community: BPL is committed to modeling environmental sustainability in all facilities as an example for the rest of the community (Attachment A, pages 48-49). Economically Vital Community: BPL is committed to prioritizing its resources to offer programs, collections, and services that are vital to support families and childhood development and respond to evolving community needs in a 21st century economy (Attachment A, pages 42- Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 354 of 607 43). Livable Community: The neighborhood branch libraries are considered by many as anchors for their neighborhoods and provide convenient access to library resources. BPL is committed to providing facilities that are inviting, ensuring equitable access to resources and compel ling community members to explore, gather, learn, and engage (Attachment A, pages 48-49). Accessible and Connected Community: BPL is committed to providing relevant technology and fluid spaces that are adaptable to the community’s changing literacy needs. It will do this by managing its public technology resources to maximize quality, and making strategic decisions based on community priorities for digital inclusion and innovation. It will identify and provide technology resources that align with community priorities to help patrons meet personal needs and provide sufficient devices and internet bandwidth to accommodate user demand. It will build strategic relationships with community partners to maximize public access technology resources and services provided to the community. (Attachment A, pages 48-49 and 54-55). Good Governance: The department is committed to maintaining effective and sustainable library operations and procedures that provide tangible community benefits from well-planned library services, technologies, and facilities and creating and administering policies that reflect library values and priorities, are user-friendly and accessible, and are current, comprehensive, and consistent. (Attachment A, pages 60-61). Funding Level Priorities There are high-level objectives associated with each goal. The objectives are prioritized by three funding levels (Attachment A, page 40). For each goal, there may not be objectives for all three funding levels. Maintain service levels = fiscally constrained plan Continue to make the most of existing resources with the primary goal of the department to maintain service level and quality. The objectives associated with maintaining service levels are essential operational changes that require limited funding to accomplish. It requires an estimated $461,000 in operational funding more than the current level and an estimated $4.7 million in capital and one -time funding, primarily to address a facilities maintenance backlog. Address community demand = action plan The objectives associated with addressing community demand are service or capital improvement that should be undertaken when additional funding is available. This includes strategically enhancing existing programs, beginning new alternative programs, addressing 2007 Library Master Plan vision plan goals that were not accomplished, or making other strategic changes that would require additional operational or capital funding. Funding this level requires $1.9 million in operational funds and a minimum of $6.3 million in capital and one-time funds. These are in addition to the amounts required by the fiscally constrained funding level. Service expansion = vision plan The objectives categorized as service expansion represent new programs, services and facilities identified through community input that were not included in the previous Master Plan. It requires Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 355 of 607 $824,000 in operational funding and $586,000 in capital and one-time funding in addition to the amounts of the previous two levels. The total amount of additional operational funding needed to implement all master plan goals is estimated to be between $3 and $3.5 million. A minimum of $11.6 million in capital and one -time funding is needed to implement all master plan goals . Subtracting the capital and one-time funds available to implement the north Boulder branch library and Gunbarrel corner library goals, the amount of capital and one-time funding needed is estimated to be a minimum of $4.3 million. Implementation and Investment Strategy The Boulder Public Library’s current annual operating budget is approximately $8 million with other limited funding sources for one-time and capital expenses (Attachment A, pages 68-73). As is the case for other city departments, increasing personnel, energy and materials costs coupled with the rising cost of operating and maintaining aging facilities, and the operations and maintenance costs for new facilities, department expenses are pr ojected to significantly outpace available funding. To ensure that BPL maximizes its annual budget, it will continue to evaluate programs and services and identify and introduce more efficient staffing models and practices . The city’s Capital Improvement Program (CIP) guidelines prioritize the maintenance of current assets over the development of new facilities. The department will coordinate with Facilities and Asset Management Division of Public Works to balance addressing the approximately $3.7 million facilities maintenance backlog with giving priority to investing in facility preventative maintenance and operations that minimize energy use, and with bringing new facilities in north Boulder and Gunbarrel online. Community input indicated str ong support for this investment approach. Based on current economic conditions, revenue and expenditure projections, current funding is not sufficient to maintain current service levels. Funding Plan Scenarios To maintain current quality and service levels and eventually fund all the goals up to the Expand Services (vision level), the master plan outlines several options to secure stable, sustainable funding for library services (Attachment A, pages 78-84). At the July 24, 2018 City Council Study Session, council supported the staff and Library Commission recommendation to hire a consultant to conduct a detailed financial analysis of library needs and the funding options outlined in the master plan. Council also requested more information about the formation of a library district i.e. governance, structure and asset allocation. Bids for a comprehensive financial analysis are expected from three consulting firms on August 30, 2019. An attorney who specializes in the formation of library districts in Colorado has been retained to provide informational report about the process and decisions about forming library districts. MASTER PLAN SUMMARY The following updated summary of the Boulder Public Libr ary Master Plan for the BVCP is recommended by approval: Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 356 of 607 Boulder Valley Comprehensive Plan Library Master Plan Summary The Boulder Public Library (BPL) contributes to social sustainability goals by providing free library services that allow community members of all incomes, ages, and backgrounds to stand on equal footing with regard to information access. BPL also serves as a community center, providing spaces for a wide variety of public gatherings and cultural events. The plan goals are categorized into four areas: 1.Programs and Services; 2.Facilities and Technology; 3.Building Community and Partnerships; and 4.Organizational Readiness. Specific priorities and goals identified in the plan include: •Provide adequate resources for the library collections and their maintenance; •Open a full-service branch library in North Boulder; •Open a ‘corner’ library in Gunbarrel; •Renovate the Main Library’s north building to activate the Canyon Theater, expand the BLDG61 Makerspace, and create space for community partners; •Expand outreach to underserved community members; •Develop a partnership strategic plan; and •Secure long-term stable funding for the library. The Planning Board approved this summary on August 16, 2018. If approved by City Council, this summary will be incorporated into the BVCP document. NEXT STEPS A City Council study session is scheduled on November 27, 2018 to discuss detailed information about options for stable library funding. An overview of the process for forming a library district will also be presented for council’s consideration. Upon City Council acceptance of the Boulder Public Library Master Plan, implementation will take place over several years. BPL anticipates incorporating new initiatives into the future budget processes, including the CIP, as resources allow. If City Council does not accept the Boulder Public Library Master Plan and instead provides direction about clarifying issues, then staff will address those issues and return to City Council later for final acceptance. ATTACHMENTS A.2018 Boulder Public Library Master Plan B.August 16, 2018 Planning Board Minutes C.November 27, 2017 City Council Study Session Summary D.April 12, 2018 City Council IP memo E.July 24, 2018 City Council-Library Commission Study Session Summary Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 357 of 607 2018 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 358 of 607 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 359 of 607 ACKNOWLEDGEMENTS LIBRARY & ARTS DIRECTOR’S FOREWORD LIBRARY COMMISSION’S FOREWORD EXECUTIVE SUMMARY INTRODUCTION PART 1: BOULDER PUBLIC LIBRARY & THE COMMUNITY PART 2: COMMUNITY TRENDS & NEEDS PART 3: GOALS & COMMITMENTS PART 4: MEASURING SUCCESS PART 5: INVESTMENT PRIORITIES & FUNDING PART 6: IMPLEMENTATION APPENDICES TABLE OF CONTENTS 02 04 05 09 10 11 25 36 64 68 8 5 86 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 360 of 607 2 ACKNOWLEDGEMENTS Boulder Community Members City Council  Suzanne Jones  Aaron Brockett  Jill Adler Grano Cindy Carlisle Mirabai Kuk Nagle Lisa Morzel Sam Weaver  Bob Yates  Mary Young Matt Appelbaum (former) Jan Burton (former) Andrew Shoemaker (former) City of Boulder Planning Board Members City of Boulder Library Commission Members  Joni Teter  Tim O’Shea Juana Gomez Joel Koenig Jane Sykes-Wilson Alicia Gibb (former) Donna O’Brien (former) Paul Sutter (former)   City of Boulder Staff Jane Brautigam, City Manager Tanya Ange, Deputy City Manager Cheryl Pattelli, Chief Financial Officer Bob Eichem, Chief Financial Advisor Joe Castro, Facilities and Fleet Manager Maria Diaz, Budget/Financial Analyst Gordon Holman, Building Services Supervisor Brent Shafranek, GIS Program Manager Mark Simon, Facilities Maintenance and Operations Supervisor Michele Crane, Facilities Design and Construction Manager City of Boulder Master Plan Committee Members | Library and Arts Department Staff Staff Technical Advisory Group  David Farnan, Library and Arts Director  Jennifer Phares, Deputy Library Director and Project Manager  Antonia Gaona, Public Services Manager  Laura Hankins, Collection Development Manager  Jaime Kopke, Programs, Events and Outreach Manager  Tim McClelland, Patron Services Manager  Aimee Schumm, eServices Manager Leanne Slater, NoBo Corner Library Manager  Aspen Walker, Community, Engagement and Enrichment Manager Devin Billingsley, Senior Budget Analyst (former) Hillary Dodge, Meadows Branch Manager (former)  Eileen McCluskey, Community Engagement and Enrichment Manager (former)  Erica Segraves, Youth Services Manager (former) Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 361 of 607 3 City of Boulder Master Plan Committee Members | Library and Arts Department Staff Cont. Mission Vision, Guiding Principles Development Committee Zack Jacobson-Weaver, Creative Technologist Brett Keniston, Collection Development Librarian Jaime Kopke, Programs, Events and Outreach Manager Tim McClelland, Patron Services Manager Shelley Sullivan, Boulder Reads Manager Maureen Malone, Administrative Specialist II (former) Project Support Staff  Hannah Combs, Senior Budget Analyst Lisa Holmberg, Webmaster  Kathleen Janosko, Administrative Specialist III   Celia Seaton, Administrative Specialist II Alyssa Setia, Administrative Specialist II  Maureen Malone, Administrative Specialist II (former) Jim Winchester, Communication Manager I (former) Jennifer Bray, Communication Specialist III (former) Tanya Burden, Communication Manager (former) Project Consultants  Margaret Sullivan Studio LLC   margaretsullivanllc.com Joining Vision and Action joiningvisionandaction.com Trainer Evaluation trainerevaluation.org A special thanks to all members of City of Boulder departments who provided input and guidance throughout the project. Endorsed by the Boulder Public Library Commission on June 6, 2018. Recommended by City of Boulder Planning Board on August 16, 2018. Accepted by Boulder City Council on [Insert date]. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 362 of 607 4 The reality of today’s knowledge economy is that it is difficult to achieve economic success or enjoy a good quality of life without a broad range of literacy, language, and technological skills. Libraries are working hard to close gaps in literacy, academic achievement, job and life skills, health and civic participation. And yet, libraries are still often thought of as nice-to-have cultural institutions rather than central to developing the early literacy and ongoing practice of lifelong learning that are at the heart of knowledge capital. Libraries play a critical role in fostering reading skills for children and families, assisting adults in upgrading or learning new skills and finding jobs, providing tutoring and basic literacy classes for immigrants and those seeking to further their education, and providing access to a vast array of basic and sophisticated technologies that would otherwise be unavailable to the public. Libraries are the community’s public forum. They are at the center of communities wanting to create a welcoming environment for all. Libraries provide free and open access to information, a space for unfettered dialogue, and comfortable public space for all. They are trusted institutions, inclusive spaces, and places to hang out and have a conversation with a friend, go to a thought-provoking program, or just to relax with a good book. Libraries are safe-havens for teens and adults and immigrants seeking to find their way, or in some cases a safety net for those who are otherwise disconnected from social and civic life. Entrepreneurship, science, technology, local foods have been critical pieces of Boulder’s identity for decades. With the launch of BLDG 61 Makerspace, implementation of STEAM and coding programs, the co-location of the Small Business Development Center, partnerships with the Boulder County Farmer’s Market, Urban Farms, Boulder Housing Partners, and countless startups and local businesses, Boulder Public Library has positioned itself to be a factor in the city’s social and economic future. Libraries are the original co-working space. They provide space and service and amenities in a freelance work environment. And they are consistently ‘home’ to dozens of businesses. With nearly 50 small businesses launched, and more than 10 patents pending out of the BLDG 61 Makerspace, Boulder Public Library is demonstrating that public libraries can become informal incubators in communities. It is no surprise that a true sharing economy improves the quality of life of everyone within our community. Knowing your neighbors improves our community’s resilience. Libraries are community anchors throughout Colorado and the United States. By pooling community resources, providing accessible public space that is open to all, libraries provide a platform for community discussion, spark innovation, and position Boulder to address some of the community’s most pressing needs. Governor Hickenlooper recently said: “Two of the most important assets any town has are its library and its Main Street.” The long-term health of libraries is essential to the long-term health of the communities they serve. Libraries are one of the last great unbroken promises of a democratic society. They are honest brokers amid a flood of information. Their legacy is as storied as their future is bright. Please enjoy reading the 2018 Boulder Public Library Master Plan. LIBRARY & ARTS DIRECTOR’S FOREWORD – David Farnan, Library and Arts Director, Boulder Public Library 2 Garmer, Amy. (2018). Libraries: Building Community Resilience in Colorado. A Report of the Aspen Institute Colorado Dialogue on Public Library. The Aspen Institute. aspen.cvlsites.org/wp-content/uploads/FinalAspenCOReport.pdf Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 363 of 607 5 The 2018 Library Commission is honored to welcome you to this edition of the Boulder Public Library Master Plan. The Boulder Public Library Commission serves to represent the library to the community, and the community to the library. We must acknowledge, with thanks, the many community members who helped to shape the vision presented in the Master Plan. During the outreach leading up to the 2018 plan we learned that the community views our library as a trusted and inclusive place of learning and innovation. It is a place where people can come together, to talk to and learn from each other about issues and opportunities of the past, present and future. The Master Plan is rooted in these values and truly represents the Boulder community’s vision for our library system. We enthusiastically endorse the goals articulated in the 2018 Master Plan. Being stewards of these ideas and objectives, the Commission is committed to the library’s long term financial sustainability. As a primary focus for Commissioners throughout the Master Planning process, we will continue to advocate in support of the best path forward for funding our library system. In order for the library to continue to fulfill its potential - as an engine of social and economic mobility, a platform for civic education and dialogue, and a place to create hands-on, collaborative learning environments which address the needs of 21st century learners - then far greater financial support will be required in the years ahead. That support requires action today. After careful analysis of the available funding strategies, backed by many hours of listening & discussion, this Library Commission concurs unanimously on the creation of a library district as the best path toward a sustainable library system. We are compelled to direct your attention to these considerations. LIBRARY COMMISSION’S FOREWORD Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 364 of 607 6 LIBRARY COMMISSION’S FOREWORD, CONT. Boulder Public Library’s long term financial sustainability is a fundamental and important question to be thoroughly addressed over the next two years. Funding the library’s core services and meeting the 2018 Boulder Public Library Master Plan goals represents a significant financial investment: an approximately $4 million increase in annual ongoing operating costs and $1 million in annual unfunded one-time and capital expenses. The 2018 Master Plan represents extensive public outreach and dialog, reflecting our community’s requests for core programs, services and expansion needs for the library over the next 10 years. Details of these goals and a carefully constructed path to achieve the vision, including a detailed analysis of the funding needed to accomplish these goals is found in Part 3. Part 5 of the Master Plan explains the library’s current sources of revenues and outlines several scenarios for future funding. Library staff have established reliable metrics and measures for every aspect of library services and programs, including the goals reflected in the Master Plan in Part 4. These metrics are reviewed by staff and Commission on a quarterly basis and summarized each year in the library’s annual report to the community. Library resources are adjusted regularly based on the outcome of these metrics. We believe that the library represents a “best practice” model for budget management and reporting. The numbers bear out that our library is managing high demand services with fewer resources than are necessary to sustain existing utilization and grow to meet new demand. How can we best ensure financial sustainability for our library system? The Commission has identified six foundational pillars that are critical to the library’s long-term success. 1. Long term, dependable and predictable revenue for core services, facilities and operational needs, traditionally a government responsibility. 2. Ability to make decisions and take action within the library’s approved budget on a timeline that meets the library’s needs. This includes having the ability to shift funding within an approved budget to stay current with changes in program/service demands. 3. Knowledgeable, skilled and dedicated library staff. 4. Continued community financial support for programs and special projects through the Boulder Library Foundation. 5. A strong volunteer program. 6. Collaborative partnerships with community organizations, businesses and non-profits (creating mission synergies for programs and services). Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 365 of 607 7 The Commission has concluded that a library district provides the most equitable, accountable and reliable option for BPL’s long term financial sustainability. We believe that dedicated funding for staffing, facilities and core services is a necessity. The library simply cannot compete against the priorities that drive Council elections. Because of the way these bigger issues dominate Council agendas and City priorities, it is difficult for library needs to be “heard” by City staff and Council. As evidence of this challenge, we note that our library system has seen no growth in operational funding and staffing for more than 16 years. The library’s operational funding today (adjusted for inflation) is exactly what it was in 2002, when the City last had to cut services to match declining revenues. In that same period, City funding overall has outstripped inflation, keeping pace with the City’s growth in population and property values. Library staffing has decreased 16% since 2002, while City staffing has increased 12%. Unfortunately, while the City budget as a whole has recovered and increased since the City’s last fiscal downturn, the library has not been included in this recovery. Property tax is preferable to sales tax. Revenues from property taxes are generally more stable than sales tax (especially in a highly desirable community like Boulder). Sales tax revenues have been declining in the City of Boulder for some time, a trend that is likely to continue. We should avoid mixed funding. Boulder’s current small increment of property tax (0.33 mill) was dedicated in 1988 as a way to support increased library funding. However, as revenues from property taxes have grown over the years, the general fund contribution to the library budget has been correspondingly reduced - yielding no net benefit to the library from its dedicated property tax. The Commission seeks to learn from history and avoid relying on a mix of dedicated property taxes and general fund contributions. Districting offers the most equitable, reliable and accountable approach to funding. Districting offers a better match between the patron base and the funding base. Staff’s analysis shows that while most households in Boulder have library cards, nearly 40,000 of our library’s cardholders live outside the Boulder city limits. No other library system of Boulder’s size has a similar, disproportionate number of cardholders living outside the library’s boundaries. Districting provides a means to establish boundaries that better reflect the patron base - an approach now taken by every other Colorado library similar to Boulder in size and patron base. Funding is more reliable in a district because it is secured directly from dedicated tax revenues rather than competing with other city departments. Changes in funding decisions can be made quickly, and unspent dollars can be retained for future years. Library districts are now the most common form of governance and funding for Colorado libraries. A single purpose district enhances taxpayer accountability because its leadership is focused solely on the library. The library’s community assets (including facilities and library collections) remain in service to the community, directly maintained and invested in by the district at the direction of the library board. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 366 of 607 8 The Library Commission’s Recommendations for 2018-2020 1. We need to complete a thorough evaluation of future library funding options. To ensure a successful outcome for the library’s funding needs, the City should devote resources over the next four months to fully evaluate the funding options identified in the master plan. Voters need specificity about the mill level amount, estimated costs per household and per square foot of commercial space, and the timing of property tax revenues coming to the library. A consultant’s help will be required, and this analysis should be completed before our planned November 2018 study session with City Council. 2. We need a broad-based community discussion around the complex questions underlying BPL’s long term financial sustainability - and the best path forward. The community needs adequate time in an open, well designed public engagement process around the library’s funding needs, and on any related Charter impacts. The library will need marketing and community involvement in partnership to support and achieve this end. Our library leadership has been able to use its current funding creatively and perform remarkably on a shoestring budget. Winning the Colorado’s Library of the Year award in 2016 is testament to the resourcefulness and creativity of our dedicated library staff. Imagine what the future could look like with a fully funded library system! But the library is now stretched as far as it can go. The Boulder community has told us that the library is a priority. Now is the time for the community to come together to make library funding a priority and take the steps to ensure a bright future for this essential community resource. Respectfully submitted, The 2018 Library Commission Joni Teter - Chair, Tim O’Shea Vice-Chair, Juana Gomez, Joel Koenig, Jane Sykes-Wilson LIBRARY COMMISSION’S FOREWORD, CONT. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 367 of 607 9 The Boulder Public Library Master Plan will guide the library’s strategies and priorities for investments for the next ten years. It is a strategic document meant to shape the delivery and quality of services the library provides in a manner consistent with the City of Boulder sustainability goals. It is designed to serve as an outline for how the library sustains outputs, meets growing demand, and builds a resilient future. The 2018 Boulder Public Library Master Plan is an update to the Boulder Public Library 2007 Master Plan. It identifies BPL development priorities to: • Sustain quality service by funding deficiencies and shortfalls in current service (created by past growth in demand) and redressing a backlog of facilities maintenance. • Strategically address ongoing and future growth in demand based on needs identified for the entire community with specific focus on youth and underserved communities and neighborhoods. The master plan follows key implementation strategies outlined in the Boulder Valley Comprehensive Plan and is aligned with categories and strategies of building a strong and resilient community. The plan is divided into six parts. The core of the plan outlines the library’s role in the community, describes broad community trends, and lays out a series of goals meant to address current needs and the community’s aspirations for the library. The goals of the plan are categorized under several headings: programs and services, facilities and technology, building community and partnerships, and organizational readiness. Some of the goals described in the plan are carried over from the Boulder Public Library 2007 Master Plan: opening a full-service library in north Boulder, creating an outreach program to engage the Latinx community, and addressing the current backlog of facility maintenance. The plan presents a series of goals designed to maintain quality of service by building staff, and technological and financial capacity around traditional programs that have seen significant increases in use over the past few years, such as circulation, storytime and youth programs. The plan also presents new goals that emerged as high priorities in the course of the Master Plan’s community engagement phase: expansion of library services to Gunbarrel, expansion of the BLDG 61 Makerspace, program support to activate public use of the Canyon Theater, development of a partnership strategy to expand BPL resources, and an outline for how the library can leverage its space and position as a trusted and inclusive institution to encourage ongoing civic dialogue on issues that are important to the community. Finally, the plan presents a range of options to address the long-term financial sustainability of the library, providing it the flexibility to maintain service levels, meet community demand, and expand to address areas of growth. Options are presented to increase municipal funding through dedication of new or existing sales or property tax, reallocate current city resources, and creation of a library district which could include areas outside the city limits. EXECUTIVE SUMMARY Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 368 of 607 10 INTRODUCTION The 2007 Boulder Public Library Master Plan guided the Boulder Public Library system into what it has become today. However, it was not able to predict the remarkable transformation that has occurred within the library field in the past decade. Some of the most fundamental elements of the public library changed rapidly during that time: the collections have diversified to multiple formats to address individuals’ reading preference for paper or e-books, and the way people access them has also changed. Individuals can access e-books, e-audiobooks, music and movies from the library any time or anywhere from a mobile device. Along with books, libraries now offer a wide-variety of technology, equipment, tools, and instruction to inspire the creativity and innovation of the community. Library spaces have been restructured and made more flexible and inviting for use by individuals and as gathering places for groups of people. In the next ten years, the Boulder Public Library faces three significant challenges as it implements the community’s plan for its future: • Secure, stable and adequate funding; • Remain agile in the face of continued advances in digital media and technologies; • Continually focus its resources to serve a community that is undergoing significant demographic shifts and growing diversity. Notwithstanding all of this, one fundamental thing about the Boulder Public Library will not change. It will always be the place where everyone is welcome, and where everyone belongs. 2 Levien, Roger E. (2011) Confronting the Future: Strategic Visions for the 21st Century Public Library. ALA Office of Information Technology. Policy Brief No. 4. www.foresightfordevelopment.org/sobipro/download-file/46-463/54 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 369 of 607 11PART 1BOULDER PUBLIC LIBRARY & THE COMMUNITY ROLE OF THE LIBRARY IN THE COMMUNITY The role of the public library in North America is growing and transforming. It is a place that provides free and equal access to information and books, but it now also includes increased opportunities for obtaining 21st century skills, civic engagement, and social gathering. The public library is an expression of its community’s vision, innovation and creativity. THE PUBLIC LIBRARY IS A KEY PARTNER IN SUSTAINING THE EDUCATION, ECONOMIC AND CIVIC HEALTH OF THE COMMUNITY DURING A TIME OF DRAMATIC CHANGE. – RISING TO THE CHALLENGE, THE ASPEN INSTITUTE Through active engagement, listening, and facilitation, libraries are identifying their communities’ priorities, and adapting programs, services, and policies to help address community needs. In this new role, libraries are also uniquely positioned to provide a platform and facilitate connections among community members, playing active roles in creating the social environment desired by their members. This necessitates that library staff consider broad community needs in designing and offering library programs and services and that they respond to iterative feedback. The Boulder Public Library (BPL) has focused its mission to reflect this new role and to align with the Aspen Institute’s broad concepts of the public library as people, as place, and as platform. BPL’s own definition of these concepts follow, and the library’s accomplishments during the past 10 years, its commitments, and goals for the upcoming 10 years are organized in this Master Plan using those headings. Mission of the Boulder Public Library CONNECTING PEOPLE, IDEAS, AND INFORMATION TO TRANSFORM LIVES AND STRENGTHEN OUR COMMUNITY. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 370 of 607 PART 1 BOULDER PUBLIC LIBRARY & THE COMMUNITY THE LIBRARY AS PEOPLE BPL reflects the community, the people, and their values. Serving people is the core of its mission and is accomplished through creating connections, fostering relationships and resilience, and offering opportunities for the community and staff to collaborate and connect. As a convener and connector, the library supports people with a diverse range of interests and needs and presents and welcomes new opportunities to bring people together. THE LIBRARY AS PLACE BPL is a destination that anchors the community and strengthens its identity. It is a safe and trusted place where everyone is welcome to explore ideas, participate in civic dialogue, and find enrichment and entertainment in the programs and services offered. BPL provides the physical and virtual space for people to explore, learn, and connect. In a welcoming atmosphere, diverse needs can be met through the physical design of its facilities, the materials that are available, and the resources that guide personal empowerment. THE LIBRARY AS PLATFORM BPL facilitates creativity and innovation; providing resources, tools and experiences that inspire learning and creativity, promote literacy, and cultivate connection. It is a platform for individuals and groups to drive their experiences and to connect with ideas and each other. The library as platform is a blending of people and place to inspire patrons to design their own educational, social, and cultural experiences. 12 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 371 of 607 13 CURRENT SERVICES, RESOURCES, FACILITIES & PROGRAMS From five locations throughout the city, BPL and its staff offer a wide variety of resources, and ongoing and short-term programs and services to the community. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 372 of 607 PART 1 BOULDER PUBLIC LIBRARY & THE COMMUNITY VISION Service Excellence for an Inspired Future. VALUES • Customer Service - We are dedicated to exceeding the expectations of our community and our co-workers by demonstrating consistent and professional service with a solution-oriented approach. • Respect - We champion diversity and welcome individual perspectives, backgrounds and opinions. We are open-minded and treat all individuals with respect and dignity. • Integrity - We are stewards of the public’s trust and are committed to service that is transparent and consistent with city regulations and policies. We are honorable, follow through on our commitments and accept responsibility. • Collaboration - We are committed to organizational success and celebrate our shared dedication to public service. We believe community collaboration and the sum of our individual contributions leads to great results. • Innovation - We promote a forward-thinking environment that supports creativity, calculated risks and continuous improvement. We embrace change and learn from others in order to deliver leading edge service. 3Colorado Department of Education. Colorado State Library. (2016) Colorado Public Library Standards. www.colibrarystandards.org 4Legal Service Area Population - The number of people that reside within the legal service area of the library. The legal service area of a library is the population within the boundaries of the geographic area the library was established to serve. 14 CURRENT SERVICES, RESOURCES, FACILITIES & PROGRAMS PROGRAMS Story times, annual summer reading, films, concerts, adult and family literacy, citizenship classes, teen programs, Science, Technology, Engineering, Art, and Mathematics (STEAM) programs, exhibitions, skill-building workshops, edible learning garden, Conversations in English, and literary and author events. SERVICES Personalized customer service, information access and instruction, check-outs, interlibrary loan, holds, homebound delivery, library used bookshop, café, business development, community gathering spaces, rentals, printing, scanning, internet access and copying. COMMUNITY RESOURCES Books, magazines, CDs, DVDs, e-books, e-magazines, audiobooks, databases, computers, website, local archives and oral history, genealogy, teen spaces, meeting rooms, study rooms, gallery, theater, the Foundry and the BLDG 61 Makerspace. STAFF The BPL staff is honored to deliver programs, services, and resources to the community. They are excited to engage with community members to help them discover information, create opportunities for learning and personal fulfillment, and connect with each other. Staff members are dedicated to creating a welcoming environment and meaningful experiences for everyone. Their work is guided by the City of Boulder’s vision and values, as outlined below. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 373 of 607 CURRENT PERFORMANCE & ACCOMPLISHMENTS BPL measures performance based upon a variety of benchmarks as compared to some of its peer libraries in the nation, as well as how well it meets the Colorado Public Library Standard3. See Appendix A. The libraries that are used for comparison represent a wide variety of funding and governance structures, as well as unique service attributes making direct, one-to-one comparison ineffective. For example, some rural libraries have one facility while other more urban libraries, like BPL, have a network of branch libraries resulting in significantly different facilities maintenance costs. One of BPL’s important and unique characteristics is that the number of total cardholders is 33.5 percent more than the legal service area population4. On average libraries serving areas with a population of more than 100,000 people have 62 percent of the population as cardholders. The only other library used for comparison that has more cardholders than the legal service area population is Westminster Public Library which serves five percent more than its legal service area population5. BPL’s facilities also include a fully-equipped makerspace, a traditional theater space and an art gallery, amenities which many libraries do not have. Benchmark comparisons need to be considered within the context of the service area population needs, and funding and governance structures of the libraries being compared. 15 *A Revolution of Rangeview Libraries, Adams County, CO | SOURCE: Library Research Service – 2016 Colorado Public Library Statistics Guided by input from the Library Commission and the community, BPL’s recent success is also attributed to the accomplishment of most of the goals and objectives in the 2007 Boulder Public Library Master Plan. COMPARISON OF CARDHOLDERS AND POPULATION BOULDER PUBLIC LIBRARY ANYTHINK LIBRARIES* LONGMONT PUBLIC LIBRARY POUDRE RIVER PUBLIC LIBRARY DISTRICT PUEBLO CITY-COUNTY LIBRARY DISTRICT WESTMINISTER PUBLIC LIBRARY Population Cardholders 0 100,000 200,000 300,000 400,000 5Appendix A Comparison data from: Library Research Service. Colorado Public Library Statistics and Profiles. www.lrs.org. Accessed 6/19/2018 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 374 of 607 PART 1 BOULDER PUBLIC LIBRARY & THE COMMUNITY 16 SOURCE: Library Research Service – Colorado Public Library Statistics CURRENT PERFORMANCE & ACCOMPLISHMENTS CONT. TOTAL PROGRAM ATTENDANCE 110000 82500 55000 27500 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Foremost, the majority of support for library programs comes from the community through donations to 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. The BLF generously invests in innovative programs and partnerships through BPL that enrich the community. The BLF’s investment in library programs resulted in a significant increase in program attendance. In addition to ongoing support of most programs and events offered by the library and the funding of start-up equipment and materials costs for the BLDG 61 Makerspace, the BLF donated one-time funding so that the library could build a Spanish language collection to fulfill one of the outreach goal objectives in the 2007 Boulder Public Library Master Plan. In 2016, BPL facilitated the BLF’s hiring of a community partnership manager to coordinate the launch of an annual membership fundraising program, called the Library League, a step toward meeting the funding goal of developing a gift giving program to increase monetary donations to the library. LIBRARY AS PEOPLE: ACCOMPLISHMENTS BPL earned the prestigious recognition of Colorado Library of the Year in 2016 from the Colorado Association of Libraries. With nearly one million visitors a year, the library is currently one of the busiest public places in Boulder and the busiest library of its size in the State of Colorado. BPL reorganized staff to concentrate on expanding its program offerings to include STEAM, and early literacy focused programs. These changes resulted in an increase in attendance to 102,072 in 2015, representing 73 percent growth. Program attendance has continued to grow since 2015. BPL’s success with programs is sustained by informal collaboration and partnerships with local agencies, and generous donations of time and resources from local companies. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 375 of 607 17 Volunteers are also critical to the success of the library. In 2017, more than 770 community members donated 18,320 hours, the equivalent of $475,770. Their service is equivalent to almost nine Full Time Equivalent (FTE) employees and over 12 percent of the annual work hours. Volunteers support staff by performing tasks that support daily library operations, maintain the Main Library used book shop, and contribute directly to patrons by serving as literacy tutors for children and adults, teaching English as a Second language classes, teaching skills to patrons in the BLDG 61 Makerspace, offering drop-in tech help, capturing oral histories, involving children in the Summer of Discovery reading program, welcoming thousands of people to the many programs and events hosted by the library, and delivering materials to patrons who are homebound. BPL works closely with the Library Commission on library policy and planning matters. Five dedicated volunteers are appointed by City Council to serve the community on the Library Commission. The commission represents the community’s perspective to City Council on library matters. In 2015, the Library Commission initiated work on a long-standing goal: drafting changes to the City Charter to clarify the commission’s powers and duties. The changes were approved by voters in November 2015. Updating the Library Commission’s powers and duties from the original charter language, written in 1917, has improved focus on critical issues and created a more effective working relationship between the Library Commission and staff. BPL also works with the Boulder County Employment Alliance to provide temporary employment opportunities in materials handling to qualified community members who have psychiatric disabilities. Vocational staff from Boulder County Mental Health provide support to these individuals to ensure a productive and valuable experience. In 2014, BPL began a successful partnership with the Boulder Small Business Development Center (SBDC). The SBDC is a fast-paced, hands-on, economic development nonprofit – a public/private partnership housed in the Main Library with a mission that is aligned with BPL’s. SBDC supports the growth and resiliency of small businesses in Boulder County by providing free business consulting, practical workshops and events and connection to resources, including financing. In 2018, the U.S. Small Business Administration named Boulder SBDC the national winner of its Small Business Development Center Excellence and Innovation Award — the best in the nation. BPL’s partnership with the Boulder County Farmers’ Market to run the Seeds Library Café has helped to activate the interior bridge space in the Main Library, creating a community hub where patrons can relax or meet with friends. Seeds Library Café staff also present programs that build community and educate patrons about the importance of buying local food and supporting local farmers. Mission of Boulder Small Business Development Center SUPPORT THE GROWTH AND RESILIENCY OF SMALL BUSINESSES IN BOULDER COUNTY BY PROVIDING FREE BUSINESS CONSULTING, PRACTICAL WORKSHOPS & EVENTS AND CONNECTION TO RESOURCES, INCLUDING FINANCING. THE SBDC HELPS ALL TYPES OF SMALL BUSINESSES – FROM STARTUPS THROUGH 2ND STAGE, FROM “MAIN STREET” THROUGH HIGHLY SCALABLE TECHNOLOGY VENTURES. SOME PROGRAMMING IN BOTH ENGLISH AND SPANISH. SOURCE: Boulder Small Business Development Center, www.bouldersbdc.com Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 376 of 607 PART 1 BOULDER PUBLIC LIBRARY & THE COMMUNITY 18 CURRENT PERFORMANCE & ACCOMPLISHMENTS CONT. In 2016, BPL formalized its partnership with the Boulder Genealogical Society. Society members work closely with staff and use the resources at the Carnegie Library for Local History to help people conduct family and local history research. The society maintains a small collection of unique resources at Carnegie, which are available to patrons. Members also present educational classes and workshops on genealogical research to patrons at the library. Serving children and families is a high priority for BPL. In the last ten years, the storytime program has become a primary focus and a large draw for families. BPL has transitioned from offering storytimes often led by volunteers to presenting engaging storytime programs curated by highly-trained staff members. All storytime staff members are trained in Every Child Ready to Read® techniques and model strategies for parents and caregivers that support the development of early literacy skills. Storytime staff members are regularly evaluated and offered ongoing training, peer shadowing and other opportunities for professional skill-building. The frequency of storytime offerings have increased significantly and are offered at the Main Library and all the branches. The annual Summer of Discovery reading program encourages the love of reading and learning for thousands of children and families through inspiring and engaging programs and literacy activities. BPL partners with the Boulder Valley School District (BVSD) to bring Summer of Discovery reading program activities to students enrolled in the BVSD summer learning program. Most of the students in BVSD program are members of families that are economically disadvantaged. BPL furthers its reach into the community to serve children and families through several collaborative efforts. The George Reynolds Branch Library Reading Pals program is a collaboration with Fairview High School, which promotes literacy skills and a love of reading for children in early elementary school. Children are paired with high school students once a week for fun reading and literacy skills practice. The BoulderReads Reading Buddies program is a long-standing partnership with the University of Colorado, in which children (Kindergarten through 3rd grade) are paired with University of Colorado undergraduate students for weekly reading, writing and literacy activities. These two programs emphasize exploration and discovery, and foster literacy and a love of reading. BPL also collaborates with Boulder Housing Partners, Boulder Head Start, University of Colorado family housing, and Mapleton Early Childhood Center by offering story time programs to children of families with diverse backgrounds and/or low-income levels. Boulder County Farmer’s Market & Seeds Library Café Missions SUPPORT, PROMOTE AND EXPAND LOCAL AGRICULTURE, MAKING FRESH PRODUCTS ACCESSIBLE TO OUR COMMUNITY AND STRENGTHENING RELATIONSHIPS BETWEEN LOCAL FOOD PRODUCERS AND FOOD CONSUMERS. SHOWCASE LOCAL FOOD AND DRINK THROUGH AN AFFORDABLE, TRANSPARENT, AND SEASONAL MENU, TO ENGAGE THE PUBLIC WITH LOCAL AGRICULTURE, AND TO SERVE AS A VIBRANT GATHERING SPACE FOR THE LOCAL FOOD COMMUNITY. SOURCE: Boulder County Farmers Market, www.bcfm.org and Seeds Library Café, www.seedsboulder.com Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 377 of 607 19 Making the BoulderReads program more visible and accessible to community members interested in improving their literacy skills was an objective in the 2007 Library Master Plan. While the library was not able to obtain funding to meet the intention of this objective, which was to move the program offices and community space to a more prominent location in the Main Library, BoulderReads expanded its online presence through social media and a new website with an online application and menu of services. The BoulderReads program also expanded its offerings to include access to Career Online High School, a Cengage Learning program geared toward adults who want to earn a high school diploma. Additionally, BoulderReads created a digital literacy curriculum for literacy tutors to teach their students 21st century life skills, such as using computers to apply for jobs, health insurance, etc. In 2012, the library began publishing an email newsletter, BPL Now, to keep patrons informed about upcoming programs and events and new services offered. More than 30,000 patrons have opted in to receive the newsletter and it typically has a 25 percent open rate. In 2016, BPL introduced a printed bi-monthly event and program guide in response to patrons’ requests for a complete, printed list of library programs. In 2017, the library received ongoing financial support from the city’s General Fund to develop and implement a marketing plan to promote the wide variety of resources, programs, and services BPL offers to the community. It goes without saying that the library staff have made these accomplishments possible. During the past few years, greater focus was given to increasing staff engagement and cultivating innovation and collaboration to better serve the public. This began with the staff collaborating to create a Customer Service Philosophy and design a model for mobile service to meet the customer at their point of need. Several internal organizational changes were made to increase efficiency and allow the library to expand programs and improve the quality of many of its fundamental services. One of the most impactful improvements includes a centralized telephone system. Expert customer service specialists now handle all incoming telephone calls. These specialists provide patrons with immediate assistance, which has reduced wait time and freed staff at the public service desks to devote more time to patrons visiting the libraries in person. Additionally, BPL has also committed to recruiting qualified bilingual staff, when possible, to serve in many of the public facing roles. In 2013, BPL received one full time staff position and funding to add a Teen Librarian to the Youth Services workgroup. This position allowed the library to consistently staff the expanded Teen Space and The Foundry (technology center) at the Main Library, expand programs for teens, and engage the teen advisory group. BPL also received ongoing financial support from the city’s General Fund to offer staff necessary training and professional development to maintain and grow their skills with technology, information delivery, and community engagement and for hiring temporary staff to cover critical functions like materials handling and the customer service desks when standard staff members are on paid leave. BOULDER PUBLIC LIBRARY CUSTOMER SERVICE PHILOSOPHY In accordance with the City of Boulder's vision and values, we strive to consistently exceed every customer's expectations by: • Welcoming each individual with respect and friendly professionalism; • Regarding each interaction as important; • Fostering exploration and discovery; • Listening and proactively seeking solutions; Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 378 of 607 PART 1 BOULDER PUBLIC LIBRARY & THE COMMUNITY 20 CURRENT PERFORMANCE & ACCOMPLISHMENTS CONT. 2014 Main Library Renovation BPL addressed several 2007 Master Plan and 2009 Boulder Public Library Facilities Sustainability objectives by renovating the Main Library. The $4.9 million project was completed in April 2015 in collaboration with the city’s Public Works Department– Facilities Asset Management (FAM) Division and paid for by the voter- approved 2012 Capital Improvement Bond, Library Fund Balance, and FAM Facilities Renovation and Replacement fund. The architecture firm, studiotrope Design Collective, engaged the community to create a building design that activated underused or secluded spaces, reduced noise conflicts, and improved basic signs and wayfinding. The community asked for and received more public meeting space, a child-friendly children’s area, an expanded teen space, and a new vibrant café. In addition to the many amenities, FAM took advantage of the construction schedule to address several major mechanical and building system improvements, including upgrading the building’s cooling system, replacing the clerestory windows to address roof leaks, improving the lighting control system, and replacing the flooring in the Canyon Gallery. To encourage more use of the public meeting spaces in the libraries, each was equipped with new audiovisual technology and flexible furnishings. An online calendar and registration system was implemented to allow patrons to make reservations on their own. Beginning in 2013, and coordinated with the renovation of the Main Library, an investment was made in new, automated materials handling systems. The systems were designed to more efficiently process returned materials and reduce the number of physical touches to materials by staff. Materials handling systems were installed at the Main Library, and at the George Reynolds and Meadows branch libraries. These systems, along with process improvements made by the materials handling workgroup, has enabled all facilities to consistently shelve materials within 24 hours of their return while at the same time reducing the number of staff engaged in these activities. Neighborhood Branch Libraries In 2014, the NoBo Corner Library was welcomed by community members living in north Boulder. Hours were also expanded at George Reynolds and Meadows branch libraries without additional cost to the community, by reorganizing staff resources. During 2015 and 2016, both the George Reynolds and Meadows branch libraries received modest renovations, reconfiguring staff space to improve efficiency in processing library materials and to create more welcoming, patron-friendly spaces. A 20-year lease was negotiated with the new owner of the Meadows Shopping Center for the Meadows Branch Library for no charge except the library’s share of taxes, insurance, and common area maintenance fees. This secured that location for the Meadows Branch Library through 2029. BLDG 61 Makerspace In 2016, BPL worked in collaboration with FAM to transform the under-utilized staff maintenance shop in the Main Library into the BLDG 61 Makerspace. Library staff and FAM designed and constructed the LIBRARY AS PLACE: ACCOMPLISHMENTS BPL’s Main Library, neighborhood branches and local history archive are popular destinations for the community. Significant investments were made in library facilities since the 2007 Boulder Public Library Master Plan. The 2009 Library Facilities Sustainability Study, an objective of the facilities goal in the 2007 Boulder Public Library Master Plan, provided guidance for investment in maintenance and renovation of library facilities and a geographic service area study to inform placement of new facilities or service points (e.g. book returns) in the city. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 379 of 607 21 space to accommodate a woodworking shop complete with a large CNC (Computer Numerical Control) router, a classroom equipped with laser cutters, and a tech lab. A ventilation system for the large equipment and other safety equipment were installed to keep staff and patrons safe while using the space. Building System Improvements The city’s Public Works Department– Facilities Asset Management (FAM) Division completed several building system improvements, reducing energy usage and improving comfort in library facilities. Since 2007, more than $2.5 million was invested in the Main Library, and the Meadows and George Reynolds branch libraries to complete roof replacement, HVAC (Heating Ventilation and Air Conditioning) system upgrades, Americans with Disabilities Act (ADA) compliancy, and flood proofing. Specifically, in 2011, the Main Library’s roof was replaced with extensive roof repairs completed in 2014 to address leaks associated with the clerestory windows. The Main Library also received improvements to mitigate flooding in 2013. Through a 15-year Energy Performance Contract (EPC), $1.2 million was secured for energy usage in all libraries. This was used to replace aging HVAC equipment, upgraded lighting, and install solar photovoltaic panels to offset building electrical and natural gas consumption. The EPC work was completed during 2011 to 2013 and paid for from annual utility savings, Renewable Energy Credits, and General Fund debt payments from FAM Major Maintenance. The cumulative utility cost avoidance since the EPC through March 2018 is more than $186,000. FAM continues to actively monitor the energy consumption of all libraries and implement low or no-cost solutions to further reduce energy consumption. Building Maintenance In 2016, BPL coordinated with FAM to consolidate the maintenance budget, management of the maintenance staff, and janitorial services to improve overall efficiency. These efficiencies provided the resources to increase investment in janitorial services and the staff time to become more strategic about routine maintenance. In 2014, the annual janitorial contract was $110,000 and was increased to $204,000 in 2017, an 85 percent increase in investment. Additionally, the carpet cleaning scope was increased from spot-cleaning, as-needed, monthly to alternating spot-cleaning with wall-to-wall cleaning with a focus on high traffic areas every other month. This change was made to extend the life and improve the appearance of the carpet. The investment in carpet cleaning increased from $12,000 in 2017 to $26,000 in 2018. FAM also implemented a preventative maintenance schedule for all major building system and hired mechanical systems contractors to perform regular preventative maintenance. Library operating budget resources were also reallocated to fund an Equipment Replacement Fund for new equipment that is managed by FAM. Carnegie Library Building Improvements During the past ten years, renovations and major repairs were completed to the exterior of the Carnegie Library for Local History. Interior improvements including an HVAC upgrade and construction of basement were also completed. The total for these renovations was $290,000 which was partially funded by a Colorado State Historical Society grant and the City’s General Fund. Security To begin to address community concerns about safety in the Main Library, the city increased BPL’s budget to hire a contract security officer at the Main Library for 35 hours per week in 2007. The hours were expanded to have one security officer on-duty all hours the Main Library was open to the public in 2010. In 2015, a security camera system was installed in the Main Library to deter unacceptable behavior and support investigation of incidents. Information Technology Improvements In 2013 and 2015, BPL coordinated with the city Innovation and Technology (IT) Department to consolidate technical support staff resources for managing and troubleshooting the enterprise systems used by the library and to consolidate and relocate computer servers housed in the Main Library, which is in a high-hazard floodplain, to the city’s data center. Improvements were also made to the procedures for backing up the library’s server data and internet filtering was implemented on the wired and wireless networks for public use. Operational budget resources were reallocated to fund a Computer Replacement Fund for new technology. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 380 of 607 PART 1 BOULDER PUBLIC LIBRARY & THE COMMUNITY 22 CURRENT PERFORMANCE & ACCOMPLISHMENTS CONT. LIBRARY AS PLATFORM: ACCOMPLISHMENTS During the past 10 years, BPL has transformed into a platform complete with resources, staff support, and spaces for patrons to engage in self-directed learning and enjoyment. Since the 2007 Library Master Plan, BPL has responded to patron demand by diversifying the book and media collections into electronic formats. BPL partnered with several area libraries to rapidly grow its offerings of e-books and downloadable audiobooks by collectively purchasing these resources. Demand for electronic formats continues to trend upwards, and the way in which libraries purchase, maintain, and loan electronic formats continues to evolve and is still almost exclusively dictated by the vendors. The wide variety of platforms and purchasing agreements makes for challenging decisions for library staff to meet patron demand while getting the best value for the tax dollars received. The Boulder community’s demand for physical books is still showing slight growth, while the demand for DVDs, music CDs, and CD audiobooks is starting to decline. In 2011, BPL received $69,000 increase to the collection budget, and a $150,000 increase in 2016 to specifically expand its electronic formats. The collections are maintained, and acquisitions are made following library industry best practices, the latest assessment tools, and input from community experts and volunteers. In 2014, BPL introduced Radio Frequency Identification (RFID) technology to improve patron self-service and materials availability through efficient, timely processing of returned materials. This technology uses electromagnetic fields to automatically detect RFID tags in library materials to track check in, check out and maintain accurate inventory. There is now a small added cost to make each new book, DVD, and CD RFID-ready, which collectively reduced the buying power of BPL’s collection budget. In 2017, BPL received an ongoing increase in its operating budget to cover the cost of RFID tags. Many of the new and in-demand materials also arrive at the library shelf-ready, requiring minimal handling by staff to be available to patrons now that they are cataloged and processed by library book and media vendors, for added efficiency. According to the Colorado Public Library Standards for traditional library materials (e.g. books, movies, music in physical and electronic formats), BPL has met the 2007 Master Plan benchmark of materials expenditure per capita ($10.21) being within the 75th percentile6. To continue to increase patrons’ use of BPL’s collection, library staff may want to look at ways to continue to improve upon the selection, maintenance, and promotion of library materials to increase total circulation per capita (14 items, currently above the 50th percentile) and the annual average item turnover rate (five times, currently above the 25th percentile). BPL worked with its consortium partners (Mamie Doud Eisenhower Public Library in Broomfield and the Louisville Public Library) 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, adding Lafayette Public Library, Loveland Public Library and Longmont Public Library. 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. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 381 of 607 23 Recognizing the difficulty of patron access to important printed historic resources held by the Carnegie Library for Local History, BPL hired a technology consultant to assist with the design and procurement of a digital asset management system. The project included prioritizing the library’s local history collections for digital preservation and updating collection management policies to align with industry best practices. The new system, slated for implementation in 2018, will increase patron access to the digitally preserved historic photographs and documents by making them available online through Carnegie Library’s website. The community makerspace, BLDG 61, launched in 2016, is attracting thousands of participants and has won multiple awards. 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 dozens of businesses launching from the space in the less than two years it has been in operation. BLDG 61 programs have been sustained by a series of national and local community grants. BLDG 61 has a high-tech shop with laser cutters and 3D printers, as well as a full-scale, advanced woodworking shop and offers opportunities for patrons to learn from, and work alongside, community experts. 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 workforce and 21st century skill training for patrons. In the past 10 years BPL introduced several technology infrastructure upgrades to increase patron access to the Internet, computers, and software. Children now have access to computers that allow them to develop digital literacy skills, and participants can borrow and use laptop computers during technology and maker- focused programs. Similarly, the BoulderReads program installed a computer lab to assist adults with improving their digital literacy skills, obtaining high school equivalency credentials, applying for jobs, etc. With the shift to more patrons owning smartphones, tablets, and laptop computers, BPL addressed the access issue by implementing and expanding WiFi Internet access and introducing access to the Microsoft Office software suite. While website technology evolves rapidly, BPL made incremental improvements to its website, catalog search interface, and introduced library account and early literacy apps. To facilitate information sharing about library programs and services with patrons who speak languages other than English, the Google translate feature was integrated into the library website. 6 Reference from Boulder Public Library 2007 Library Master Plan to former Colorado Public Library percentile rankings. Current percentile rankings at Library Research Service (2014) Colorado Public Library Percentiles. www.lrs.org/data-tools/public-libraries/colorado-public-library-percentiles Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 382 of 607 PART 1 BOULDER PUBLIC LIBRARY & THE COMMUNITY 24 OPPORTUNITIES FOR CONTINUED IMPROVEMENT During the next 10 years, BPL will continue to build upon accomplishments designing programs and services to respond to the community’s aspirations and needs. Through community engagement, staff and Library Commissioners evaluated the relevance and priority of the objectives from the 2007 Boulder Public Library Master Plan that were not accomplished due to time and budget constraints. Several of these objectives were updated and are included in BPL’s new goals (bolded items). BPL was not able to fully address many of the outreach objectives. This included: • Regularly gathering community input about programs and services to assess satisfaction. • Programs and services designed to reach low-income families, youth, seniors, community members with specials needs, and Latinx community members. • Programs that pair seniors and youth. • Promoting BPL as an arts destination. • Incorporating a homework help center with facilities expansion. While BPL did make significant strides with improving and expanding facilities and updating technology during the past 10 years, a few objectives were not addressed, most of which are still relevant including: • Building a full-service north Boulder branch library. • Providing sufficient staff time to manage auditorium and meeting room technology to support expanded art and cultural programs as well as social events and increased public space. • Installing consistent, patron-friendly directional signs in all library facilities. • Creating a Carnegie library program plan to identify major building system needs and the required funding to address them, supporting its role as the conservator of Boulder’s history. • Investing in a mobile technology information center that could be taken out into the community to engage underserved community members. • Expanding the Main Library 1992 building to the west. • Investigating opportunities for multi-function civic buildings in which the library would share space with outside partners and other city departments. • Moving the BoulderReads program offices and public space to a more prominent location. Financial sustainability continues to be an urgent priority for BPL. Funding objectives that were not fully addressed include: • Creating a development office within the library to spearhead broad fundraising efforts for capital and one-time needs. • Pursuing additional grant opportunities and developing a plan to increase library financial donations. • Obtaining adequate operating funds to improve the quality for custodial and security services and to create a fund for replacement of outdated and worn library furnishings. • Developing an endowment to ensure the future of the Carnegie Library for Local History as both a historical site and a repository for Boulder’s historic archives. • Conducting further research on options for library funding and governance. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 383 of 607 25PART 2COMMUNITY TRENDS & NEEDS OVERVIEW OF BOULDER Nestled in Boulder Valley against the scenic beauty of the Flatirons, Boulder is a resilient community committed to environmental sustainability, maintaining a diverse and stable economy, offering a variety of recreational opportunities, and cultivating a welcoming culture that supports innovation and learning for all its residents. Boulder is one of the most educated metropolitan areas in the country and home to University of Colorado (CU), Naropa University and 17 federally-funded research labs. Boulder offers an outstanding public library system, hundreds of miles of biking and walking trails, excellent public transportation, easy access to open space and the foothills, numerous and varied art, cultural, dining, entertainment and shopping options, excellent schools, and high-quality healthcare. Boulder’s high quality of life, sense of place and extensive amenities make it an attractive place for people from all over to live and work. While Boulder is unique in its many appealing attributes, many members of the community face the same economic, educational achievement, and social challenges as those in Boulder County. BPL is an organization that serves everyone, and over the past ten years has become a regional hub providing library service to city residents as well as many patrons who reside in unincorporated Boulder County. POPULATION 108,707 CU student enrollment*33,246 Median household income $88,400 Below poverty level**22% JOBS 100,148 Employees who commute into Boulder 47% HOUSING UNITS 46,094 Median attached home price $405,250 Median detached home price $845,000 The median household income increased more than 12 percent between 2005 and 2016, although poverty rates and other negative socio-economic indicators are not improving among certain populations (e.g. Latinx residents, seniors, and children). SOURCES: 2017 Boulder Community Profile, *2017 University of Colorado Overall Enrollment Profile, **American Community Survey 2016 data 95,728 individual verified for income status. City of Boulder At-A-Glance Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 384 of 607 PART 2 COMMUNITY TRENDS & NEEDS 26 DEMOGRAPHIC TRENDS The following section summarizes demographic trends for children and families, the largest group in BPL’s patron base, as well as trends for other groups that are typically considered harder to connect with the city’s public services, or otherwise underserved. All demographic information is for the city of Boulder unless specifically noted as Boulder County. Children & Families Children and families make up the largest group that BPL serves, hence, a significant amount of its resources, programs and services are designed to serve this group of patrons. Demographic trends and the educational and social needs of this group are important factors to BPL’s long-range planning and service delivery design. For example, during focus groups and community events for the Master Plan, Latinx parents indicated that BPL needs to find ways to offer programs and services at times and locations that are convenient to these families. Parents in this demographic often hold more than one job and are not able to bring their children to the library to participate in programs and events. The total population of children in the city increased by almost 3 percent between 2010 and 2016. The percentages of children in the city of Boulder who are white or of Latinx or Hispanic origin have not changed significantly since 2009. However, between 1990 and 2014, there was a marked shift in ethnicity for Boulder County children. The number of white non-Latinx children decreased by 22 percent, while the number of Latinx children increased by more than 123 percent7. The Colorado Children’s Campaign projected that by 2021, children of color will make up the majority in Colorado. Between 2007 and 2016, Boulder Valley schools experienced a more than 10 percent increase in student enrollment (pre-kindergarten to grade 12). The number of students eligible for free/reduced lunch (FRL) programs in the school district during 2016 and 2017 was 21 percent. Family income less than or equal to 185 percent of the Federal poverty level qualifies students for FRL program. The 2017 Federal poverty level for a family of four is annual income of $24,600 per year. The true cost of living in Boulder for a family of four is actually more than $86,000 per year. Poverty is not equally distributed among the city’s children. Four times POPULATION 13,805 White alone, not Latinx or Hispanic 72.5% Latinx or Hispanic origin 17.1% TOTAL FAMILIES 8,065 Total Families in poverty 5.1% White alone, not Latinx or Hispanic families in poverty 3.7% Latinx or Hispanic origin families in poverty 16.5% Boulder Children At-A-Glance (<18 years of age) SOURCE: American Community Survey 2016 7 The Status of Children of Boulder County Report 2015. www-static.bouldercolorado.gov/docs/2015statusofchildren-1-201512301636.pdf Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 385 of 607 27 more families of Latinx or Hispanic origin are in poverty than white families. The 2017 Boulder County TRENDS Report states that economically disadvantaged students need nearly twice the amount of support as their more advantaged peers to compensate for the experiences their families cannot afford. While the scope of BPLs mission does not include directly addressing this serious community problem, it is important to consider the unique challenges of reaching and providing library services to children and youth in this category. According to U.S. Census estimates for the combined years 2011 to 2013 in Boulder County, 17.7 percent of children ages 5 to 17 years in non-English speaking households spoke English less than “very well.” The Census Bureau defines linguistic isolation as speaking English less than “very well” among people who do not speak English as their primary language. This isolation creates substantial challenges for children with school achievement, their access to library programs and services, and for their families’ involvement in the community. Student achievement is a common measure used to evaluate educational policy and indicates students’ readiness to enter the workforce or move into higher education. Analysis of the Transitional Colorado Assessment Program and the Colorado Student Assessment Program8 scores indicate that Boulder County student achievement has shown modest improvements in the ten years between 2004 and 2014. However, the achievement gaps in reading (33 percentage point gap) and math proficiency (35 percentage point gap) are wide between students who are eligible and not eligible for the FRL program. The reading gap narrowed only slightly during that ten-year period. Far too often, Latinx children and children in families that are economically disadvantaged are falling behind their peers. Closing the achievement gap was identified as one of the most critical community challenges and a top priority for the Boulder Community Foundation in the 2017 TRENDS Report. Research indicates children’s development of literacy skills must start early, but only 29 percent of BVSD kindergartners attend a full-day program. This rate is dramatically lower than that of the St. Vrain Valley School District. One of the reasons for the discrepancy is that BVSD offers full-day kindergarten at only eight schools whereas St. Vrain offers it at every school. This means many children in the BVSD must wait until 1st grade before receiving full-day instruction, putting minority and poor children behind their peers from the very beginning of their education9. According to The Status of Children of Boulder County Report 2015, children with the best opportunity for success as adults are those with a high school diploma or greater. BPL can best serve the community by coordinating with BVSD and devoting some of its resources to providing programs that support students to increase academic achievement and to help close these gaps. ACHIEVEMENT GAP: THE DIFFERENCE IN ACADEMIC PERFORMANCE BETWEEN CHILDREN FROM HIGH- AND MIDDLE- INCOME, EDUCATED FAMILIES AND THAT OF THEIR PEERS, WHOSE BACKGROUNDS INCLUDE MORE RISK FACTORS AND LESS OPPORTUNITY. SOURCE: 2017 Boulder Community Foundation TRENDS Report 8 Colorado’s standards-based assessment is designed to provide a picture of student performance to schools, districts, educators, parents and the community. 9 Community Foundation of Boulder County. 2017 Boulder Community Foundation TRENDS. www.commfound.org/trends Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 386 of 607 PART 2 COMMUNITY TRENDS & NEEDS 28 DEMOGRAPHIC TRENDS CONT. The Harvard Family Research Project’s report Public Libraries: A Vital Space for Family Engagement says that libraries are playing a greater role in early learning for young children. Engaging families in learning activities is critical for children’s academic and social development and is a matter of equity. Family engagement is a shared responsibility among families, educators, and communities. High-income families spend seven times more money on out-of-school enrichment activities than low-income families. Libraries are free, trusted, safe, and welcoming places that can help counterbalance these inequalities10. Immigrant & Minority Groups Supporting diversity and cultivating a social environment that is welcoming and inclusive are fundamental values of the Boulder community. BPL represents these values by promoting cultural competency. Through its own guiding principle, BPL promises to evolve and continually engage with the community and to develop programs and services that are relevant to the needs of immigrants and minorities. To effectively engage and evolve, BPL must remain apprised of the trends and needs of community members with diverse backgrounds. 10 Lopez, M.E. M., Caspe, M., and McWilliams, L.. (2016) Public Libraries: A Vital Space for Family Engagement. www.ala.org/pla/sites/ala.org.pla/files/content/initiatives/familyengagement/Public-Libraries-A-Vital-Space-for-Family-Engagement_HFRP-PLA_August-2-2016.pdf 5RS: WAYS LIBRARIES ENCOURAGE FAMILY ENGAGEMENT REACH OUT: Libraries reach out to families wherever they are to promote the programs, collections, and service that are vital in a knowledge economy. RAISE UP: Libraries elevate family views and voices in how library programs and services are developed and carried out. REINFORCE: Libraries provide guidance on and modeling of the specific actions that family members can take to support learning, reaffirming families’ important roles and strengthening feelings of efficacy. RELATE: Libraries offer opportunities for families to build peer-to-peer relationships, social networks, and parent-child relationships. REIMAGINE: Libraries are expanding their community partnerships; combining resources and extending their range; improving children and families’ well-being; and linking new learning opportunities. SOURCE: Public Libraries: A Vital Space for Family Engagement Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 387 of 607 29 Hispanic or Latinx origin 9.2% Asian alone 5.3% Black or African American alone 1.1% American Indian or Alaskan Native alone 0.2% Native Hawaiian or other Pacific Islander alone 0.1% Other race alone 0.2% Two or more races 2.6% Boulder Minority Groups Percent of Population SOURCE: American Community Survey 2016 Boulder residents of Hispanic or Latinx origin increased by more than 12 percent between 2010 and 2016. Twenty-six percent of residents of Hispanic or Latinx origin are living below the Federal poverty level. Children 1.5% Adults 5.1% Spanish 6.6% Other Indo-European 4.7% Asian and Pacific Island 3.3% Other 0.7% Percent of Boulder Population for which English is not the Primary Language Spoken SOURCE: American Community Survey 2016 POPULATION 10,811 White alone, not Latinx or Hispanic 93.7% Latinx or Hispanic origin 2.6% Do not speak English as the primary language 10.1% Living in poverty 7.5% Householder Living Alone 53.1% Older Adults The Boulder Community Foundation 2017 TRENDS Report states the older adults represent the fastest growing population group in Boulder County and by 2050, adults aged 65+ are projected to comprise 23 percent of Boulder County’s population. In 2014, 65 percent of adults aged 60+ who responded to the Community Assessment Survey of Older Adults, used a public library. While BPL provides a significant number of programs, services and resources that appeal to adults of all ages, BPL will have to tailor offerings to address the unique needs of members of this rapidly-growing group to be responsive. These needs are related to mobility and accessibility, supporting aging in place, and staying connected to other community members. Boulder Older Adult Residents At-A-Glance (65+ years of age) SOURCE: American Community Survey 2016 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 388 of 607 PART 2 COMMUNITY TRENDS & NEEDS 30 DEMOGRAPHIC TRENDS CONT. Persons Experiencing Homelessness The cities of Boulder and Longmont have the largest number of persons experiencing homelessness in Boulder County. According to the 2017 Point-in-Time Survey for Boulder County, seventy percent of Boulder County’s total population experiencing homelessness (n=600) are any race, non-Latinx or Hispanic, and 22 percent are Latinx or Hispanic. Approximately 33 percent of respondents were families with children (n=157). Sixty-five respondents reported being unaccompanied youth. The number of chronically homeless individuals in the county was estimated to be 124 persons (n=480). The inability to pay rent or mortgage was the most frequent contributing factor leading to homeless status. Losing a job was the second. BPL is committed to assisting Boulder’s homeless community members and their families to become self-supporting and self-sufficient by improving their literacy and developing job skills. BPL is also a place for marginalized community members such as those experiencing homelessness to feel welcomed and part of the community. Further, BPL can facilitate connecting people to the information, resources and other agencies that they need to change or improve their individual situations. GROWTH TRENDS & AREA CHARACTERISTICS During the past decade, more than 3,000 new housing units have been built and more than five million square feet of commercial and industrial space has been developed in Boulder. Gunbarrel and east Boulder are anticipated to show the most growth over the next decade11. North Boulder has continued to evolve to include mixed-use development along Broadway that is becoming the subcommunity’s center for gathering and doing business. Comprehensive Planning The master planning effort is a key implementation strategy under the city’s primary planning document, the 2015 Boulder Valley Comprehensive Plan (BVCP). As with all city department master plans, this plan takes its overall policy direction from the BVCP. The Boulder Public Library Master Plan reflects the city’s commitment to provide a rich mix of cultural offerings and library services that are responsive to the needs of all populations. 11 City of Boulder. 2017 Boulder Community Profile, City of Boulder www-static.bouldercolorado.gov/docs/2017_Community_Profile-1-201708171012.pdf?_ga=2.221165784.1116835863.1522077010-1720780512.1489675207. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 389 of 607 31 Gunbarrel According to the Boulder Valley Comprehensive Plan (BVCP) 2015 update, the Gunbarrel subcommunity is unique because many residents live in the unincorporated area. There is also shared jurisdiction for planning and service provision among the county, city, Gunbarrel Public Improvement District and other special districts. The commercial and industrial areas in the area have been identified for potential revitalization in previous planning efforts. The 2006 Gunbarrel Community Center Plan proposes transitioning the Gunbarrel commercial area from mostly light industrial uses to a viable and vibrant, pedestrian-oriented commercial center serving Gunbarrel subcommunity residents and workers. This process is partially underway and includes: • Expanding and introducing more density into the retail area, • Adding new residential and some offices in proximity to the retail area, • Providing more multi-modal transportation connections and making Spine Road between Lookout and Gunpark roads the ‘Main Street’ for the retail area. Implementation of the Gunbarrel Community Center Plan will require collaboration of the public and private sectors. Business associations, such as the Gunbarrel Business Alliance, and neighborhood groups will play a pivotal role in promoting collaboration to successfully implement the plan. BVCP projections for the Gunbarrel Subcommunity 2015 POPULATION 10,800 Total population at projected zoning capacity 12,300 2015 DWELLING UNITS 5,600 Total dwelling units at projected zoning capacity 5,800 2015 EMPLOYEES 12,750 Total employees at zoning capacity 25,600 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 390 of 607 Boulder Gunbarrel Area Residents At-A-Glance SOURCE: BPL-Gunbarrel Patron Profile Analysis of Top 100 percent of All Patrons within the service area. Cengage Learning. 2016 by Experian. 2016 Alteryx, Inc.| Powered by Alteryx. *The 2017 Federal poverty level for a family of four is annual income of $24,600 per year. **The true cost of living in Boulder for a family of four is more than $86,000 per year. POPULATION 12,057 Residents aged 65+15.9% Latinx or Hispanic origin 4.6% Median age 38.5 years Most prominent age group 55–64 years HOUSEHOLDS 5,486 With children 30.5% With active cardholders 32% Speak Spanish at home 3.7% *Annual household income $24,999 or less 9.6% **Annual household income $25,000 to $80,000 31.3% Average annual household income $120,551 Fifty-seven percent of Gunbarrel cardholders must drive between 10 and 15 minutes, and 43 percent must drive between 15 and 20 minutes to reach the closest BPL location identified as the Meadows Branch Library. This is the furthest average travel time of any Boulder residents. Many of the BPL patrons who reside in Gunbarrel and participated in the Master Plan community survey and other engagement events expressed enthusiastic interest in getting some form of library service in the area. They view the public library as critical to creating a vital community center, a place where they can interact with their neighbors and a safe and welcoming place for children and families to learn and play. Opening a corner library in Gunbarrel is included as goal in the plan. (See the Facilities and Technology goals.) Gunbarrel Cont. A 2016 analysis of the Gunbarrel area and the BPL accounts of patrons who reside within a two-mile radius of there was conducted using the Cengage Learning database by Experian using Census Area Projection Estimates and appending the data generated with anonymized BPL patron data. This data is parsed by postal zip code rather than the boundary of the subcommunity defined by the BVCP. PART 2 COMMUNITY TRENDS & NEEDS GROWTH TRENDS & AREA CHARACTERISTICS CONT. 32 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 391 of 607 BVCP projections for the North Boulder Subcommunity 2015 POPULATION 12,760 Total population at projected zoning capacity 14,100 2015 DWELLING UNITS 6,080 Total dwelling units at projected zoning capacity 6,700 2015 EMPLOYEES 4,380 Total employees at zoning capacity 5,500 North Boulder The vision of the 1995 North Boulder Subcommunity Plan included a branch of BPL as a community center among its residential neighborhoods. Over the years, the newer mixed-use development along Broadway has become the core area of community activity with local shops and eateries. In 1997, five new zoning districts were created to implement the design guidelines in the plan, including: a business main street zone patterned after historic ‘Main Street’ business districts; three mixed-use zones that provide a transition between the higher density business ‘Main Street’ and surrounding residential or industrial areas; and a mixed density residential zone district. Northeast Boulder (between 30th street and Airport Rd, west to east, and Valmont to Highway 119, south to north) has multiple mobile home communities and apartment complexes and is one of lowest income areas in the city. 33 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 392 of 607 PART 2 COMMUNITY TRENDS & NEEDS GROWTH TRENDS & AREA CHARACTERISTICS CONT. North Boulder Cont. North Boulder Area Residents At-A-Glance SOURCE: BPL-North Boulder Patron Profile Analysis of Top 100 percent of All Patrons within the service area. Cengage Learning. 2016 by Experian. 2016 Alteryx, Inc.| Powered by Alteryx. *The 2017 Federal poverty level for a family of four is annual income of $24,600 per year. **The true cost of living in Boulder for a family of four is more than $86,000 per year. A 2016 analysis of the North Boulder area and the BPL accounts of patrons who reside there was conducted using the Cengage Learning database by Experian using Census Area Projection Estimates and appending this data with anonymized BPL patron data. This data is parsed by postal zip code rather than the boundary of the subcommunity defined by the BVCP. POPULATION 16,674 Residents aged 65+13.1% Latinx or Hispanic origin 12.9% Median age 41.6 years Most prominent age group 55–64 years HOUSEHOLDS 6,791 With children 32.2% With active cardholders 54% Speak Spanish at home 11.6% *Annual household income $24,999 or less 12.1% **Annual household income $25,000 to $80,000 29.3% Average annual household income $129,722 Through a partnership with Boulder Housing Partners, the North Boulder Corner Library came to fruition in 2014. While the compact corner library was enthusiastically welcomed by the community that was eager for library services, its small size and limited resources are not able to fully meet the north Boulder community’s need for library services. BPL is currently planning the construction of a full- service branch library in North Boulder to replace the NoBo Corner Library. This project is a goal in this plan. (See the Facilities and Technology goals section.) 34 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 393 of 607 East Boulder The Boulder Valley Comprehensive Plan describes Boulder Junction as an intermodal, regional center. The City of Boulder Transit Village Area Plan guides development of the area. The plan recommends transformation of this once mostly industrial, low-density, automobile-oriented area into a more urban, higher-density, pedestrian- oriented environment with a mixture of uses, including new retail and office space and new residential neighborhoods for persons with a diversity of incomes and lifestyles. Like Boulder’s workforce, BPL has become a regional hub serving patrons from all over the region. Providing popular, convenient, commuter-friendly library service may be a natural enhancement that BPL could provide to mixed-used, higher-density areas like Boulder Junction. A kiosk-type book pick-up and return may be an attractive feature to commuters and residents in the area and may provide convenient access to other community members residing in east Boulder. Boulder Gunbarrel Area Residents At-A-Glance SOURCE: BPL-East Boulder Patron Profile Analysis of Top 100 percent of All Patrons within the service area. Cengage Learning. 2016 by Experian. 2016 Alteryx, Inc.| Powered by Alteryx. *The 2017 Federal poverty level for a family of four is annual income of $24,600 per year. **The true cost of living in Boulder for a family of four is more than $86,000 per year. As plans progress for further development along the Arapahoe Avenue corridor between Baseline Road and Diagonal Highway and east between 33rd and 55th streets, library staff will coordinate with Planning, Housing and Sustainability to identify and assess options for future library service locations including an option to provide mobile services to the area via a bookmobile. BPL may consider providing some pop-up or pilot programs to engage with community members who reside in east Boulder along Valmont Road and in the Boulder Junction area to understand what type of library services would most benefit them. POPULATION 3,820 Residents aged 65+10.4% Latinx or Hispanic origin 20.9% Median age 37.4 years Most prominent age group 25–34 years HOUSEHOLDS 1,506 With children 23.2% With active cardholders 42% Speak Spanish at home 15.7% *Annual household income $24,999 or less 13.1% **Annual household income $25,000 to $80,000 37.1% Average annual household income $119,932 35 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 394 of 607 PART 3GOALS & COMMITMENTS The foundational pillars of the BPL Master Plan are the vision for the next 10 years, the goals, and commitments to the community. The vision defines BPL’s role in partnership with the community. VISION FOR THE NEXT TEN YEARS The Boulder Public Library serves as a centerpiece of the community, a destination for human connection, life-long learning, civic engagement, and creative exploration. 36 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 395 of 607 Provide Inclusive Access We strive to create convenient and equitable access for the community through our physical spaces, services and onsite and offsite programs. Our libraries are welcoming to all: safe, clean and well-maintained facilities. Promote all Forms of Literacy We create opportunities for the development of literacy skills needed to understand, interpret, create, communicate, and compute in our world. Foster Personal Development and Self-sufficiency We support life-long learning for all ages to create a more resilient community and empower individual growth. Support and Sustain an Inspired, Engaged, and Informed Community We cultivate an informed community by providing resources and facilities to encourage civic dialogue and create a forum that connects people and ideas. Form Strong Partnerships and Leverage Community Resources We value the work and expertise of our community, volunteers, and the Boulder Library Foundation and seek beneficial relationships that enhance the programs, services, and financial stability of the library. Reach Out and Respond to Our Diverse Community We evolve with our community. The library will continually engage with the community to develop programs and services that are relevant to their needs. Maintain High-Quality Programs and Services We give priority to maintaining high-quality programs and services that are impactful or have strong participation before expanding our offerings. GUIDING PRINCIPLES 37 The following guiding principles inform decisions for resource allocation, priority of implementing the goals, and evaluating recommendations for new programs or services that arise during the next 10 years. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 396 of 607 38 PART 3 GOALS & COMMITMENTS GOALS & COMMITMENTS To be responsive to the community’s needs, aspirations and its vision for BPL’s future and to sustain high- quality and relevant core programs and services, several goals were developed. These reflect community input gathered through a variety of methods (Appendix B). Community members who participated in the master planning process said that BPL is a source of community pride and a trusted source of information. In addition to the traditional role of providing free books and other resources, they defined the library as a vital civic space for people to meet and have conversation, study, hang out with their friends, and engage in fun and educational activities and cultural experiences. Having libraries in their neighborhood area builds and strengthens connections and creates a sense of community with neighbors. BPL was described as a fun and welcoming place, especially for children and youth. It is also a place for patrons to give back to the community through volunteerism, develop literacy skills, and pursue one’s love of books. Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 397 of 607 39 2-DAY KICK-OFF LIBRARY COMMUNITY EVENT +350 participants ONLINE SURVEY 1752 respondents TEN FOCUS GROUPS 104 participants INTERVIEWS WITH COMMUNITY MEMBERS 14 participants TWO FAMILY NEIGHBORHOOD COMMUNITY EVENTS +20 participants intercepted OPEN HOUSE COMMUNITY MEETINGS +180 participants WHAT’S UP BOULDER COMMUNITY MEETING +300 participants intercepted SUMMARY OF MASTER PLAN COMMUNITY ENGAGEMENT PARTICIPATION Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 398 of 607 PART 3 GOALS & COMMITMENTS The commitments that introduce each of the four themes express the staff’s and Library Commission’s intentions for meeting the goals and are based upon extensive research of the community’s needs and priorities, best practices, and performance benchmarks for public libraries. The objectives for each master plan goal are categorized into three areas (maintain service levels, address community demand, service expansion) and correspond to the city’s budget definitions, which are represented by columns in the tables that follow for each theme. Some goals do not have objectives or associated funding needs for each budget category. This is indicated by an “*”. Maintain Service Levels = Fiscally Constrained Plan Continue to make the most of existing resources with the primary goal of the department to maintain service level and quality. The objectives associated with maintaining service levels are essential operational changes that require limited funding to accomplish. Address Community Demand = Action Plan The objectives associated with addressing community demand are service or capital improvement that should be undertaken when additional funding is available. This includes strategically enhancing existing programs, beginning new alternative programs, addressing 2007 Library Master Plan vision plan (see below) goals that were not accomplished, or making other strategic changes that would require additional operational or capital funding. Service Expansion = Vision Plan The objectives categorized as service expansion represent new programs, services and facilities identified through community input that were not included in the previous Master Plan. The Master Plan goals are organized under four themes with individual objectives prioritized within three levels. The four themes are: 1. Programs and Services 2. Facilities and Technology 3. Building Community and Partnerships 4. Organizational readiness These goals were correlated to the City of Boulder’s Sustainability Framework outcomes which articulate Boulder’s vision for a great community. The projects and outcomes of each goal will be aligned with the City of Boulder’s Climate Commitment12 and Resilience Strategy13. 12 City of Boulder. (2017) City of Boulder’s Climate Commitment. Rising to the climate challenge, powering a vibrant future. www-static.bouldercolorado.gov/docs/2017_Community_Profile-1-201708171012.pdf?_ga=2.221165784.1116835863.1522077010-1720780512.1489675207 13 City of Boulder. (2016) City of Boulder Resilience Strategy. www-static.bouldercolorado.gov/docs/Resilience_Strategy_Final_Low-Res-1-201701120822.pdf?_ga=2.253454016.814918035.1527203887-1720780512.1489675207 GOALS & COMMITMENTS CONT. 40 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 399 of 607 41 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 400 of 607 42 43 PART 3 GOALS & COMMITMENTS • Maintaining high-quality programs and services that are impactful or have strong participation before expanding the offerings. • Engaging the community to gather input about program and service design and delivery on an ongoing basis. • Providing access to information that is current, accurate, and relevant. • Providing access to creative technology and digital resources for everyone. • Offering opportunities for creativity, personal growth, community engagement, and life-long learning. • Providing platforms for community engagement. • Providing platforms and programs to build early childhood and 21st century literacies for all. • Using strategic marketing and timely information to promote awareness of programs, services, and collections. PROGRAMS & SERVICES Commitment BPL is committed to prioritizing its resources to offer programs, collections, and services that are vital in a 21st century knowledge economy, support families and childhood development, and respond to evolving community needs. It will do this by: GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Provide resources and facilities to encourage civil civic dialogue and create a forum of ideas to address local, regional and national issues. Review results of Living Room Conversations and report from the city’s Public Participation Working Group and work in collaboration with the city’s Neighborhood Liaison and Community Engagement Committee to develop pilot program. Conduct pilot dialogues to test community interest in this program. Engage community to capture timely issues for discussion from the surveys, program feedback, and current events. Determine staff and training needs and partners to support this pilot program. Increase or reallocate personnel and non- personnel budget for this program based upon community interest. Provide adequate resources to maintain high- quality core programs and services with strong participation in the face of growing demand. *Increase branch library and youth services personnel and non-personnel budget to address recent growth in demand. * Provide uniform service levels at the Main Library and branch libraries by increasing hours and program offerings. *Develop and implement a plan for the personnel budget to provide consistent open hours and program offerings within five years * Provide adequate resources for library collections and their maintenance.*Develop and implement a plan to incrementally increase the collection budget to reach $14 per capita in 10 years. Evaluate annually and adjust personnel budget to managed increased circulation of materials. * Note: * = no objective See definition of column headings on page 40 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 401 of 607 44 45 PART 3 GOALS & COMMITMENTS PROGRAMS & SERVICES CONT. GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Increase the community’s awareness of library programs and services.*Increase targeted marketing and social media communications to promote awareness of current programs and services. Evaluate annually and adjust personnel budget to address increase in programs. Engage a marketing consultant to assist with the development of a multi-year marketing plan with strategic goals that delineates budget resources necessary for implementation. Implement plan and incrementally increase marketing budget to reach three-percent of the overall library operating budget. Activate the outside public spaces at each city-owned library facility. Develop a learning garden or urban farmers program with local partners on the grounds of city-owned library facilities. Develop and implement a strategy and funding plan that includes: goals for outside spaces that support the city’s environmental sustainability goals; maintenance standards for grounds and equipment; and that identifies programs and potential partners. Identify and engage partners. Identify and obtain grant funding. * Activate the Canyon Theater and Gallery .Assess impact to the theater and gallery spaces by tracking requests, costs, and revenues. Increase personnel and non-personnel budget to meet current demand for technical support during library programs and rentals. Investigate options for funding a two-year pilot program to expand use of the Canyon Theater and Gallery by offering it for free to the community. Identify capital funding resources needed to fully renovate the theater space and upgrade the furniture and equipment. Implement the two-year pilot concept plan. Identify and engage community partners and request personnel and non-personnel resources required. Partner with business and arts community members to conduct fundraising for improvements. Note: * = no objective See definition of column headings on page 40 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 402 of 607 46 47 PART 3 GOALS & COMMITMENTS PROGRAMS & SERVICES CONT. GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Expand the library materials holds service for patrons. Evaluate use of the service annually and adjust for changes in the number of holds fulfilled. Increase personnel and non-personnel budget to cover recent growth in demand. Increase holds allowance on e-books. Increase personnel and non-personnel budget to expand the holds service. Expand maker program offerings.Reallocate some of the current BLDG61 Makerspace hours and resources to pilot maker programs at the branch libraries and out into the neighborhoods. Change fixed-term creative technologist position to 1 full-time standard employee to maintain current program offerings. Evaluate branch library and eServices staffing levels to maintain program offerings that address community demand. Increase personnel budget to maintain outreach programs. Develop maker program expansion plan for one, three, and five- year time horizon. * Expand makerspace facilities at the Main Library and branch libraries.*Install and staff a makerspace in the North Boulder Branch Library. Develop program, staffing and space expansion plan including spaces in new facilities. Expansion in the Main Library is dependent upon the renovation feasibility study goal in the Facilities and Technology section. Create a financial plan that identifies capital and operating funding sources. Identify and engage community partners. Expand the variety of educational and cultural programs based upon community interest. Collaborate with tweens and teens to develop a wider variety of youth-focused programs. Increase personnel budget to engage partners and volunteers, and to assist with programs. Expand opportunities for patrons to gain technical skills and practice speaking other languages, and to educate and demonstrate climate, resiliency, and sustainability goals to test community interest. * Primary connection to the City of Boulder Sustainability Framework Healthy and Socially Thriving Community Accessible and Connected Community Economically Vital Community Safe Community Note: * = no objective See definition of column headings on page 40 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 403 of 607 PART 3 GOALS & COMMITMENTS • Responding to community input and use when designing new facilities or infrastructure and renovating or updating current facilities and technology. • Managing its public technology resources to maximize quality, and making strategic decisions based on community priorities for digital inclusion and innovation. FACILITIES & TECHNOLOGY Commitment Community members expect BPL facilities to have spaces where they can meet with others, enjoy programs, study, enjoy a view of the outdoors, and be quiet or loud. The neighborhood branch libraries are considered by many as anchors for their neighborhoods and provide convenient access to library resources. BPL is committed to providing relevant technology, safe and welcoming facilities, and fluid spaces that are adaptable to the community’s changing literacy needs. It will do this by: GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Open a full-service branch library in north Boulder with hours that are consistent with other branch facilities and includes a makerspace. *Engage community to inform the development of the program plan and select a location. Create a financial plan that identifies capital and operating funding sources. Identify and engage community partners. * Provide sufficient devices and network bandwidth to accommodate user demand in current and new facilities and to manage technology resources to maximize purchasing power and quality. Conduct a WiFi capacity analysis to ensure adequate access is available in current facilities and to plan for right-size system in new facilities. Expand WiFi infrastructure at select branch facilities to provide no-cost WiFi access to residents of adjacent low-income neighborhoods. Obtain funding necessary to connect new North Boulder Branch Library to the city’s network. Upgrade to WiFi infrastructure to address demand. * Provide mobile equipment, technology, and vehicles for outreach programs.**Acquire mobile equipment, technology, and vehicles and ongoing maintenance funding. • Identifying and providing technology resources that align with community priorities to help patrons meet personal needs. • Providing sufficient devices and internet bandwidth to accommodate user demand. • Providing facilities that are inviting, ensuring equitable access to resources and compel community members to explore, gather, learn, and engage. • Employing security services and technology that: • protect the rights, health, and safety of library patrons, staff, and volunteers; • ensure patrons’ use and enjoyment of the library; and • preserve and protect the libraries’ materials, equipment, facilities, and grounds. • Modeling environmental sustainability in all facilities as an example for the rest of the community. Note: * = no objective See definition of column headings on page 40 48 49 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 404 of 607 PART 3 GOALS & COMMITMENTS FACILITIES & TECHNOLOGY CONT. GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Open a “corner library” in Gunbarrel.**Engage community to inform the development of the program plan. Create a financial plan that identifies capital and operating funding sources. Identify location and engage community partners. Create a technology plan that addresses equipment, web and app design and maintenance, associated staffing levels, and staff training and skill building. Increase personnel budget to provide library-specific technology support to patrons and staff. Evaluate internet filtering to maintain compliance with federal law and eligibility for grant funding. Engage a consultant and coordinate with the city IT Department to conduct a technology analysis that includes recommendations for training and increasing the personnel budget to support new technology. Implement an incremental plan to fund personnel and non-personnel needs identified by the analysis. * Improve cleanliness of library facilities.Replace carpet, paint and furniture with quality materials, surface finishes and colors that are easily maintainable. Establish ongoing funds for the replacement of furniture in public spaces. Implement an incremental plan to fund janitorial services and additional day porters to reach and maintain International Facilities Management Association standards within three years. ** Create a facility restoration plan for the Carnegie Library for Local History.*Create a facility restoration and funding plan for the Carnegie Library for Local History. Obtain funds to implement plan recommendations. Acquire additional archival storage for Carnegie Library for Local History resources.*Acquire archival-quality storage for historic resources that are currently held in offsite facilities.* Note: * = no objective See definition of column headings on page 40 50 51 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 405 of 607 PART 3 GOALS & COMMITMENTS FACILITIES & TECHNOLOGY CONT. GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Build upon and update the library’s 2009 Facilities Sustainability Plan by conducting several studies and analyses and supporting associated funding needs. Support funding of the maintenance backlog for library facilities outlined in the Facilities and Asset Management Master Plan. Develop a 10-year prioritized, capital needs plan and funding strategies that include: • Systemwide facility enhancements to address changes with programs and service delivery • Carnegie Library for Local History restoration, • Mobile service equipment • New facilities Conduct feasibility study of the George Reynolds Branch Library facility. Study should: • Identify the building’s remaining service life and feasibility of long-term use • Provide options for renovating the facility, redeveloping the site, and relocating the services. Conduct a renovation feasibility study for the Main Library’s north building to assess expanding the makerspace, renovating the theater for greater flexibility, and providing more space for partners. Conduct a holistic energy building analysis to identify resources needed to continue to meet City’s Climate Commitment goals. Conduct an audit of all facilities to identify issues with ADA compliance and where facilities don’t meet CO library standards, and to identify opportunities to be inclusive to families, caregivers, parents, and all- genders. Conduct a sign audit and develop a plan to install clear, consistent wayfinding signs and design elements in all facilities. Conduct an analysis of growth and distribution of library services in Boulder to develop a 20-year facilities build-out plan. Identify opportunities to partner with City of Boulder Fire Department and other departments to co-manage facilities in new locations for the library (e.g. Fire Station 3 and the Transit Village area). Assess the Meadows Branch Library location and options to relocate within the shopping center. Address safety/security in all facilities.Conduct an analysis of need and peak times to provide appropriate level of security personnel and equipment at all facilities. Fund additional security personnel who are trained to de-escalate disruptive situations. Evaluate enforcement practices of rules of conduct. Evaluate design and management options (e.g. time limits) to provide amicable and equitable use of space, such as: Main Library banquette seating, Main Library public restrooms, secluded window- facing seating at the Main Library, Seeds Café. Devise standards for management of spaces that apply to all facilities. Conduct further analysis on cost and structure of contracting versus hiring employees for security services. * Primary connection to the City of Boulder Sustainability Framework Livable Community Healthy and Socially Thriving Community Accessible and Connected Community Environmentally Sustainable Community Note: * = no objective See definition of column headings on page 40 52 53 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 406 of 607 PART 3 GOALS & COMMITMENTS • Supporting the community by providing opportunities and facilitation for civic engagement and dialogue. • Engaging in meaningful discussions, gathering input, and acting in partnership with other agencies to support community-wide growth and transformation. • Ensuring that affiliates such as the Boulder Library Foundation are aligned to strengthen the connections between the library and the community. • Continuing to provide patrons with greater access to resources by collaborating with other libraries • Building strategic relationships with community partners to maximize public access technology resources and services provided to the community. BUILDING COMMUNITY & PARTNERSHIPS Commitment BPL is considered by many patrons as a community hub; a place to learn, to read, to participate in events and programs, and see their neighbors. BPL is committed to the idea that the library must build strategic partnerships to leverage community expertise to expand its program offerings in a cost-effective way and respond to the desire for more programs, opportunities to engage in meaningful, productive dialogue with their fellow community members. It will do this by: GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Cultivate community awareness about how the library is a welcoming and inclusive public place for all and protects all patrons’ first amendment rights and privacy. Design and implement an engaging and inclusive campaign (e.g. blog, newsletter, dialogues) on these topics (e.g. What the library means to me?). ** Develop a strategic partnership plan that includes a policy definition, identifies community partners to provide programs that support Boulder’s value of being welcoming and inclusive, and that builds community resilience. Promote community awareness of the benefit of current partnerships with the library with the goal of attracting other beneficial partners. Reach out to potential partners to discuss needs and opportunities for partnering. Develop strategic partnership plan that coordinates with the marketing plan (a goal in the Programs and Services section) and includes personnel and non- personnel support costs. Increase personnel and non-personnel budget according to the recommendations of the plan.* Note: * = no objective See definition of column headings on page 40 54 55 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 407 of 607 PART 3 GOALS & COMMITMENTS BUILDING COMMUNITY & PARTNERSHIPS CONT. GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Cultivate and engage the Library’s teen advisory groups. Library leadership representatives meet with the Library’s teen advisory groups to discuss their interest and opportunities for engaging teens in general. Library leadership solicit input and volunteerism from teens to present programs appealing to teens and younger children. Library leadership convene a summit of the teen advisory groups to gather feedback about how the library can best meet their needs and to discuss program planning. Library Commission extend an invitation to representative from each teen advisory group to attend Library Commission meetings. Provide resources and opportunities for group members to cultivate civic engagement and leadership skills related to library planning. * Cultivate relationship with patrons who are experiencing homelessness. Engage a group of library patrons who are experiencing homelessness in a dialogue to: • learn how the library can better serve individuals who are homeless, • help to cultivate a more positive public perception of persons who are homeless or transient, and • get their input on supporting individuals to manage behavioral issues in the library. Library Commission and staff design a community dialogue to improve the community’s perception of library safety and cultivate respect for individuals who are transient/homeless. Include patrons who have a negative perception of library safety and patrons who are experiencing homelessness. Partner with patrons from the dialogue group (above), colleagues from human services organizations, and local artists to create an educational exhibit, campaign, and/or programs about the human issue of homelessness. * Note: * = no objective See definition of column headings on page 40 56 57 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 408 of 607 PART 3 GOALS & COMMITMENTS BUILDING COMMUNITY & PARTNERSHIPS CONT. GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Expand outreach to reach underserved communities. Develop an outreach plan that includes a policy definition of underserved communities, identifies and prioritizes strategies to expand outreach. Strengthen relationships with Latinx community members. Continue to focus on recruiting new staff members in public service and outreach roles that are bilingual and/or bicultural. Create a forum for Latinx community members to directly provide input on library programs. Initiate an outreach campaign through the neighborhood branch libraries and youth services partners to share information about the library, identify needs, and gather input from Latinx community members about overcoming barriers to access. Partner with agencies that serve the Latinx community to take library programs such as STEAM into the community. Partner with agencies and community members to increase the number of culturally relevant programs at the library. * Expand the volunteer services program to leverage volunteer expertise to support daily operations, programs and engagement. Conduct an annual survey of volunteers to gather ideas and assess their satisfaction with the program. Transition the homebound delivery program to become volunteer-lead. Coordinate with city’s Community Engagement Team to develop opportunities for volunteer engagement. Create a volunteer advisory group to gather input on the program, appreciation and acknowledgement, and the annual survey. Engage volunteers and partners to conduct fundraising for making modest improvements to the Canyon Theater prior to implementation of the two- year pilot Canyon Theater and Gallery rental program. Engage volunteers and partners to supplement staffing for the Canyon Theater and Gallery rental program. Host an annual literacy-focused festival.*Identify and engage partners. Identify and obtain funding primarily through grants and donations. * Primary connection to the City of Boulder Sustainability Framework Healthy and Socially Thriving Community Accessible and Connected Community Note: * = no objective See definition of column headings on page 40 58 59 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 409 of 607 PART 3 GOALS & COMMITMENTS • Consistently fostering a healthy and effective work environment to ensure a positive patron experience. • Maintaining effective and sustainable library operations and procedures that provide tangible community benefits from well-planned library services, technologies, and facilities. • Employing sufficient staff with customer service and technology skills to help patrons achieve their goals. • Creating and administering policies that reflect library values and priorities, are user-friendly and accessible, and are current, comprehensive, and consistent. ORGANIZATIONAL READINESS Commitment BPL is committed to the City of Boulder vision, “Service excellence for an inspired future.” It is important to invest resources in the professional development of the staff, to maintain fair and effective library policies that reflect library and community values, and to periodically evaluate patron satisfaction with services. It will do this by: GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Staff recruitment, training and development to maintain service excellence. Provide facilitation training so that staff may moderate community dialogue. Increase the temporary personnel budget to accommodate regular meeting time for staff to cross train and participate in team building. Provide basic workplace safety and de-escalation training to staff. Recruit staff members that are fluent in Spanish or are bicultural to reflect the diversity of Boulder’s population. Provide opportunities for current staff members to gain Spanish language skills to better serve Spanish-speaking patrons through the tuition reimbursement program. Implement 1-2 technology training recommendations from the Technology Plan (a goal in the Facilities and Technology section). * Review policies and planning documents.Conduct a review of library policies that have not been updated in three years. Conduct evaluation of progress toward meeting Master Plan objectives and adjust goals and objectives as needed. Update the 2018 Library Master Plan goals, initiatives, and associated timeline after five years. Provide quarterly library use statistics on the website.* Note: * = no objective See definition of column headings on page 40 60 61 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 410 of 607 PART 3 GOALS & COMMITMENTS ORGANIZATIONAL READINESS CONT. GOAL MAINTAIN SERVICE LEVELS ADDRESS COMMUNITY DEMAND SERVICE EXPANSION Gather staff and community input.Review and address results of city’s staff engagement survey. Conduct patron satisfaction survey.* Identify and address opportunities to improve internal staff communication and teambuilding. Initiate a cross-division taskforce to investigate and evaluate options with staff to improve communication. Implement 1-2 highest priority recommendations for the taskforce. ** Primary connection to the City of Boulder Sustainability Framework Good Governance Note: * = no objective See definition of column headings on page 40 62 63 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 411 of 607 PART 4MEASURING SUCCESS BPL is accountable to the community for prudent management of its resources to effectively respond to community needs. BPL employs several evaluation tools and metrics to ensure that it is fulfilling its mission and role in the community and providing programs and services that make a positive impact in people’s lives. These evaluation tools and metrics are also used to establish community expectations of its library, evaluate and promote quality programs and services, and to identify and justify the need for increased investment and resources. Many measurement tools are already in place and BPL will incorporate formal review of the data gathered from them into its annual planning process. New measures will be added with the introduction of new programs and services. For new programs and services, BPL will use benchmarks, program evaluation and patron survey feedback to assess audiences served and number of participants, gauge interest, and ascertain positive impacts on the participants and the community. Analysis of the data collected from these tools informs the library’s annual workplan, program and service offerings, resource allocation, budget development, and its ability to meet goals and objectives in this plan. EVALUATION TOOLS Several evaluation tools are used or will be employed to gauge community interest, patron satisfaction, and quality and availability of its resources. City of Boulder Community Survey The City of Boulder administers a bi-annual community survey to evaluate quality of life in Boulder and the community’s satisfaction with local government services. BPL plays an important role in Boulder being a healthy and socially thriving community. Success is indicated by BPL’s overall rating remaining the same or improving as compared to the previous survey. 64 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 412 of 607 Further, BPL contributes to the City of Boulder reaching several organizational goals that connected to the City’s Sustainability Framework: Livable Community Community Character Goal – manage growth and change, to maintain and enhance Boulder’s community character and excellent public spaces and services. • Survey results show an overall rating of ‘good’ or ‘very good’ rating for opportunities to attend arts/ cultural events Healthy and Socially Thriving Community Diversity/Inclusion/Human Rights and Social Equity Goal- promote a safe and inclusive environment for all residents to participate in civic life and access community services • Survey results show an increase in the percentage of minority participation by program and department Health and Well-Being Goal – promote and support programs and services that improve the physical and mental health and well-being of residents • Survey results show an overall rating of ‘good’ or ‘very good’ rating for opportunities to attend arts/ cultural events Accessible and Connected Community Virtual Goal – Expand digital connectivity to achieve economic, environmental, and social sustainability • Survey results show growth in the number of unique internet users at City library facilities Program and Event Evaluation BPL invites feedback from participants during programs, events, and outreach activities to gather ideas for new offerings or to improve current offerings and to evaluate interest and demand. Bi-annual Patron Satisfaction Survey BPL will invite the community’s assessment of its performance, to gauge awareness of programs and services, to understand how they are informed of new programs, the community’s priority for library programs and services, and its satisfaction with facilities and technology. A consistent overall rating of satisfactory or greater indicates success. Volunteer Satisfaction Survey BPL will invite its volunteers and staff to participate in annual surveys to evaluate satisfaction with and effectiveness of the volunteer program. Colorado Public Library Standards BPL will evaluate its resources and services to determine if it is continuing to meet the basic standards outlined by the Colorado State Library on an annual basis. 65 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 413 of 607 PART 4 MEASURING SUCCESS METRICS & STANDARDS BPL tracks several input and output measures which it reports annually to the Library Research Service14 and compares its performance to other peer public library systems in the following ways. Some of these statistics are also used in the BPL’s annual report. • Per capita and per cardholder comparison • All operating expenditures • Staff expenditures • Collection expenditures • Visits • Circulation of materials outputs • Staff full-time equivalent (FTE) positions per 1000 patrons served • Staff FTE positions per 10,000 materials circulated • Turnover rate of materials See Appendix A for 2016 benchmark data for BPL and several peer library systems. BPL has identified its own standards in four fundamental areas. STANDARD: BPL is regarded as valued resource and effective community connector • Collaborations or formal partnerships with other agencies such as businesses, non-profits, and community organizations. • Engagement of Latinx community evaluated using survey demographic data and comparison to census mapping data. • Latinx youth attendance at STEAM programs • Volunteer hours contributed • Volunteers and their involvement at all levels of the organization • Volunteer opportunities available • Cumulative and individual attendance totals for programs and events (e.g. storytime, concerts, STEAM programs, etc.) • New cardholders • Literacy and outreach participants • Engagement of community members that would not otherwise participate in maker activities • Actions are aligned with the City of Boulder Resilience Strategy • Library leadership and Library Commission engages Teen Advisory Board at least quarterly • Programs and services are aligned with community input and use • Internet capacity in all facilities is adequate to meet demand 14 Library Research Service Research and Statistics About Libraries. Colorado Public Library Statistics and Profiles. www.lrs.org/data-tools/public-libraries/annual-statistics 66 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 414 of 607 STANDARD: BPL provides high-quality, relevant materials and resources • Use of new facilities is equal to or greater than current facilities of similar size and scope • Circulation of materials • Use of electronic resources • Website visits • Facility visits • Meeting room use • Hold requests • Computer use • Shelving turnaround time • Materials holds list • Waitlists for programs, classes, and tutoring sessions. STANDARD: BPL’s facilities are well-maintained, safe, and adaptable to the community’s evolving needs • Space planning for renovated and new facilities meets ADA requirements and Colorado Library Standards • Facilities maintenance backlog is addressed so that the condition of each facility reaches and/ or maintains a “Good” rating according to the Facilities Condition Index • The facility build-out plan and timing are aligned with community growth • Design, renovation, and maintenance of library facilities align with the City’s Climate Commitment goals STANDARD: BPL maintains efficient operating practices • Patron use of self-check over service desk for materials circulation is 80 percent or more • Patron use of e-payment over service desk for fee payment is 60 percent or more • Time to shelf for returned materials is 24 hours or less STANDARD: BPL’s operating and capital budget is financially sustainable • Volunteer Return on Investment • Funding per capita/user • Grants obtained • Sources and amounts of revenue are stable and matching demand • Operating and capital budget is adequate to maintain service levels and support growth to address community needs • Staff expenditures range from 60 to 65 percent of the operating budget Indicates a INCREASE Indicates a DECREASE 67 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 415 of 607 PART 5INVESTMENT PRIORITIES & FUNDING CURRENT INVESTMENT STRATEGY BPL’s annual operating budget is funded by a combination of six sources within the City’s financial structure. Each fund has unique revenue sources which support unique expenditures. Below are descriptions of each fund including revenue sources and expenditure categories, as well as how each fund is used during the city’s annual budget process. ONGOING FUNDING RESOURCES General Fund (Sales and Use Tax) The General Fund is the library’s main funding source. All revenues and expenditures within the General Fund, of which the library’s budget is a portion, must be appropriated by City Council through the City of Boulder’s annual budget process. General Fund revenues that support citywide operating expenditures, including those of the library, are sourced from a combination of sales and use tax, property tax, and a variety of other taxes. Any unspent Library Department appropriations at the end of a given fiscal year fall to General Fund Balance. The library uses the General Fund allocation for personnel, facilities, supplies equipment and overhead. Library Department Revenues Operating revenues that the library independently generates - fines and fees, rental income, proceeds from the sales of used books, etc. - are deposited directly into the General Fund. Operating revenues may be re-appropriated to the library at the discretion of the City Council either through the annual budget process or through the Adjustment to Base (ATB) budget process. Operating revenues are often requested for re-appropriation to the library for the purchase of library materials, to support the volunteer program, and offset overhead costs for rental of the Canyon Theater. Library Fund The Library Fund is a pooled repository of revenues generated from four main sources: 1) the one-third property tax mill levy that is dedicated to the library; 2) gifts and donations given to library; 3) the proceeds from the sale of library property or assets; 4) accrued 68 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 416 of 607 interest on the fund balance. Both the revenues and expenditures within the Library Fund are tracked separately as many of the revenue sources, especially gifts and donations, are designated for specific purposes such as materials acquisitions or capital improvement at various library locations. The property tax revenues are less restricted and are used to support ongoing library operations and/or materials purchases. Library Administration manages the outlay of monies from the Library Fund and must appropriate both the revenue and expenditures on an annual basis through the budget process. As per article IX, section 134 of the Boulder City Charter15, expenditures of revenues from items 2 and 3 above shall be made only upon the favorable recommendation of the Library Commission. Most of the balance of this fund is comprised of donor-restricted gifts and contributions. The Library Fund described above was established in 2016 following a voter approved city charter change. Prior to the charter change, BPL’s operating budget was funded from a previous version of the Library Fund (referred to as the old Library Fund or library reserve 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. Computer Replacement Fund (CRF) The city’s Innovation and Technology (IT) Department manages the CRF. The library makes an annual contribution to the CRF based upon IT’s cost projections for future replacement of computers as well as software upgrades, workstation technical support, hardware maintenance and network infrastructure maintenance. The contribution formulas are set by the city’s IT Department according to industry standards. The CRF is used to fund the replacement and servicing of workstations at the library, both employee workstations and patron workstations. Printers and other peripheral computing equipment are not funded in the CRF. These items may be funded in the Equipment Replacement Fund (below) depending upon acquisition cost. Contributions to the CRF are reflected in the library’s annual operating budget. Expenditures out of the library ‘s CRF balance are included in IT’s operating budget and managed according to replacement schedules determined by IT. Any unspent annual appropriations at the end of a given fiscal year fall to CRF balance and must be re- appropriated either in the next year’s budget process or through the ATB process. The library’s contribution is included in the supplies, equipment, and overhead category of the Boulder Public Library Uses of Funds graph. Equipment Replacement Fund (ERF) The city’s Public Works Department– Facilities Asset Management (FAM) Division manages the ERF. The library makes an annual contribution to the ERF based upon FAM’s inflation-adjusted projections for future replacement of major equipment which are based upon industry standards. These contributions are included in the library’s annual operating budget. Expenditures out of the ERF are reflected in FAM’s operating budget. The funds within the ERF are used at the discretion of library staff, subject to ERF policies and procedures. Any unspent funds in a given year fall to ERF balance to be used to offset future year’s contributions or alternative equipment purchases. The library’s contribution is included in the supplies, equipment, and overhead category of the Boulder Public Library Uses of Funds graph. 15 The Charter of the City of Boulder, article IX, section 134. library.municode.com/co/boulder/codes/municipal_code?nodeId=THCHBOCO_ARTIXADCO_LICO_S134LIFU 69 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 417 of 607 CURRENT INVESTMENT STRATEGY CONT. Equipment Replacement Fund (ERF) Cont. Equipment must meet the following criteria to be included on the ERF: 1. Tangible in nature and does not lose its identity if removed from original location 2. Have a useful life of more than one year 3. Have an original cost of at least $5,000 • The ERF cannot cover vehicles, buildings, building materials/machinery, fixtures, or land/land improvements. • Furnishings are not included in the ERF; they are funded out of the library’s operating budget Facility Renovation and Replacement Fund (FR&R Fund) The city’s Public Works Department– Facilities Asset Management (FAM) Division manages the FR&R Fund. The library makes an annual contribution to the FR&R Fund based upon a combination of FAM’s facility capital renovation and replacement projections as well as savings for future renovation projects envisioned by library staff. These contributions are reflected in the library’s annual operating budget. The funds are used at the discretion of Library Administration subject to FR&R Fund policies. Expenditures out of the FR&R Fund are reflected in FAM’s operating and capital budget. Any unspent funds fall to FR&R Fund balance to be programmed for future use. The FR&R Fund is used specifically for major maintenance, renovation, and replacement of capital facilities and equipment and is defined according to the following criteria: 1. Maintenance: maintenance of existing building systems or components where the cost exceeds $3,000 per repair 2. Renovation: replacement of 50 percent or more of a building system or component 3. Replacement: replacement of 100 percent of a building system or component HVAC (heating, ventilation, and air conditioning) and fixtures are included in FR&R. PART 5 INVESTMENT PRIORITIES & FUNDING 2017 BOULDER PUBLIC LIBRARY SOURCES OF ONGOING FUNDS Total $7,911,425 2017 Boulder Public Library Sources of Ongoing Funds Total $7,911,425 General Fund (Sales and Use Tax)$6,406,60881% Grants and Donations$314,4914% Library Department Revenues$153,0002% Property Tax$1,037,32613% 2017 Boulder Public Library Uses of Funds Total $7,960,964 Personnel$5,459,67369% Supplies, Equipment and Overhead$921,22511% Collections$972,78712% Facilities$148,9782% Programs and Outreach$458,3006% 2017 Boulder Public Library Sources of Ongoing Funds Total $7,911,425 $1,037,326 $153,000 $314,491 $6,406,608 2017 Boulder Public Library Uses of Funds Total $7,960,964 $458,300 $148,978 $972,787 $921,225 $5,459,673 Property Tax | $1,037,326, 13% Library Department Revenues | $153,000, 2% Grants & Donations | $314,491, 4% General Fund (Sales and Use Tax) | $6,406,608, 81% SOURCE: 2017 City of Boulder Budget 70 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 418 of 607 2017 Boulder Public Library Sources of Ongoing FundsTotal $7,911,425General Fund (Sales and Use Tax) $6,406,608 81%Grants and Donations $314,491 4%Library Department Revenues $153,000 2%Property Tax $1,037,326 13%2017 Boulder Public Library Uses of FundsTotal $7,960,964Personnel $5,459,673 69%Supplies, Equipment and Overhead $921,225 11%Collections $972,787 12%Facilities $148,978 2%Programs and Outreach $458,300 6% 2017 Boulder Public Library Sources of Ongoing Funds Total $7,911,425 $1,037,326 $153,000 $314,491 $6,406,608 2017 Boulder Public Library Uses of Funds Total $7,960,964 $458,300 $148,978 $972,787 $921,225 $5,459,673 2017 BOULDER PUBLIC LIBRARY USES OF FUNDS Total $7,960,964 Programs & Outreach | $458,300, 6% Facilities | $148,978, 2% Collections | $972,787, 12% Supplies, Equipment & Overhead | $921,225, 11% Personnel | $5,459,673, 69% SOURCE: 2017 City of Boulder Budget CAPITAL AND ONE-TIME FUNDING RESOURCES There are several sources of funds restricted for the library use. These funds may be used for one-time projects and capital needs and may have specific restrictions for how they may be expended. Capital Development Fund The city’s Public Works Department– Facilities Asset Management (FAM) Division manages the Capital Development Fund. The Capital Development Fund is funded with past balances of Capital Development Excise Taxes as well as ongoing collection of Impact Fees. In 2010, the city shifted away from collecting Development Excise Taxes in favor of collecting Impact Fees. These fees are assessed on commercial and private development projects and are to be used to fund capital expansion of municipal facilities necessary to support growing demand for city services. The recipient departments of Capital Development Excise Tax and Impact Fee funding are: Transportation, Parks and Recreation, Police, Fire, Human Services, and BPL. Capital Development Funds are programmed and spent at the discretion of FAM in conjunction with staff within the recipient departments. The Capital Development Excise Taxes and Impact Fees collected on behalf of the library can only be spent on capital facility expansion and materials expansion. Blystadt-Laesar House Proceeds   The library has 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. Library Fund $533,000 Library Fund Reserve $1,400,000 Library FR&R Fund $372,000 Development Excise Tax $166,000 Impact Fees $1,018,000 Blystadt-Laeser House proceeds $355,000 Estimated Balances* of Funds Designated for Library Use *As of May 2018, with allocations for 2018 projects (North Boulder Branch Library, Main Library Restroom Renovation, and Carnegie Library for Local History digitization project) deducted. 71 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 419 of 607 PART 5 INVESTMENT PRIORITIES & FUNDING LIBRARY DEPARTMENT FUNDING STRUCTURE Fund and Revenue/Source Expenditure Type General Fund Sales and Use Tax Property Tax Misc. Fees and Other Taxes Library Revenue Library Fund Propert Tax (0.33 Mills Dedicated) Interest Proceeds from Sale of Library Property Grants, Donations, Bequests, Gifts Computer Replacement Fund Annual Library Dept. Contributions Equipment Replacement Fund Annual Library Dept. Contributions Facilities Renovation & Replacement Fund Annual Dept. Contributions Capital Development Fund Impact Fees Library Operations Materials Acquisition Donor Designated Programs/Materials* Computer Replacement Equipment Replacement Major Maintenance, Renovation and Replacement of Library Facilites Capex That Expands Library Capacity Annualized “Smoothed” Contributions Computers Purchased on Behalf of Library Annualized “Smoothed” Contributions Equipment Purchased on Behalf of Library Annual Variable Contributions Capital Maintenance Work *Budgeted expenditures require favorable recommendation from the Library Commission 72 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 420 of 607 Community Partnerships, Collaborations, and Volunteer Support Annual support for library programs comes from the community’s donations through the Boulder Library Foundation (BLF). BLF’s board of directors determines the amount of funding to commit to BPL each year for programs. Since 2015, the BLF has committed $250,000 annually for programs and events. In addition to ongoing support of most programs and events offered by the library, BLF regularly invests one-time funds to help implement capital project like the BLDG 61 Makerspace and the north Boulder branch library. Library staff also regularly applies to other grant agencies to supplement funding for programs and the collection. The value of the formal partnerships and community collaborations is difficult to quantify as there are tangible and intangible benefits from both. Partnerships and informal collaborations allow BPL to leverage its resources to increase positive impact and benefit of its programs and services to the community. Likewise, contribution from volunteers is invaluable to BPL’s success. As mentioned in the accomplishments during the past decade, volunteers contribute their time and talent at the library for the community. Their efforts allow the library to maintain quality collections, present engaging programs, and take library services into the community. BPL will continue to offer meaningful opportunities for volunteerism and cultivate mutually-beneficial collaborations and partnerships to make the most of its resources to benefit the community. Capital Assets BPL provides programs and services in five facilities throughout the city. The Carnegie Library for Local History, the George Reynolds Branch Library, and the Main Library are city-owned facilities and the Meadows Branch Library and the NoBo Corner Library are rented facilities. The following table shows the growth of BPL from 1907 through 2017. YEAR PROJECT PROJECT SQUARE FOOTAGE TOTAL CUMULATIVE SQUARE FOOTAGE 1907 Carnegie Library (original main library)4,000 4,000 1961 Main Library on Canyon Blvd 23,899 27,899 1968 George Reynolds Branch Library 4,070 31,969 1974 Main Library (middle addition)14,680 46,649 1986 Blystat-Laeser House annexed to Carnegie Library 1,100 47,749 1990 Meadows Branch Library 7,800 55,549 1992 Main Library (south addition)53,585 109,134 1994 George Reynolds Branch Library addition 5,580 114,714 2002 Blystat-Laeser House sold (1,100)113,614 2014 NoBo Corner Library 570 114,184 73 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 421 of 607 PART 5 INVESTMENT PRIORITIES & FUNDING FUTURE INVESTMENT STRATEGY During the past ten years, several staff organizational changes have been made to improve efficiency, place a greater focus on customer service and increase program offerings including adding the NoBo Corner Library location and the BLDG 61 Makerspace at the Main Library. Hours open to the public increased 15.5 percent, and circulation of materials by 32 percent. Cardholders also increased by 76 percent and program attendance by 64 percent. In the same time frame, staffing was reduced from 79.45 to 75.5 FTE, an overall five percent decrease, and 17 percent decrease per population served.  Meanwhile, the operating revenue increased 3 percent (adjusted for inflation). The table below summarizes the input and output measures that BPL tracks annually. Summary of Change in Annual Input and Output Measures from 2006–2016 INPUT MEASURE 2006 2016 PERCENT CHANGE Total operating revenue $5,976,844 $7,512,839 +25%, [3%]* Staff FTE 79.45 75.5 -5% Total expenditures per capita $61.61 $71.42 +16%, [-5%]* Staff expenditures per capita $43.56 $47.39 +9%, [-12%]* Staff expenditures as percent of total operating expenditures 71%66% -5% Hours open to the public 10,724 12,378 +15.5% 2006 PERCENT CHANGE OUTPUT MEASURE 2006 2016 PERCENT CHANGE Total circulations 1,109,619 1,473,520 +32% Staff per 10,000 circulations 0.72 0.51 -29% Total cardholders 79,485 140,607 +76% Cardholders as percent of the population 82%131%+59% Staff per 1,000 served 0.82 0.7 -17% Total program attendance 62,211 102,072 +64% Program attendance per 1,000 served 638 951 +50% Summer of Discovery program participants 428 3018 +598% *adjusted for inflation | SOURCE: Library Research Service – 2016 Colorado Public Library Statistics74 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 422 of 607 Staff workload has reached capacity and additional investment is needed to: • Maintain current service levels and quality; • Address growth in library use that has occurred since the 2014 Main Library Renovation and emphasis on core youth-focused programs such as storytime and STEAM programs; and • Address patron requests for expansion of facilities, programs and services. High-level cost estimates have been determined for implementing the Master Plan goals. Over the next 10 years, it is estimated that $3 to $3.5 million in funding is needed for ongoing annual operating costs and up to $6 million is needed to fund one-time and capital needs. These costs are grouped, additive by budget priority level (maintain service levels, address community demand, service expansion) and shown in the graphs below. Funding for these operating costs is needed to accomplish the master plan goals. This funding would be in addition to the library’s current annual operating budget which is approximately $8 million in 2018. 75 ESTIMATED UNFUNDED ANNUAL OPERATING COSTS BY PRIORITY LEVEL Maintain Service LevelsMeet DemandExpand Services Personnel$229,000$1,145,000$684,000 Programs and outreach40000 Supplies, equipment, and overhead$68,50075500$14,000 Collections$500,000 Facilities$164,000$190,000$126,000 Total$461,500$1,950,500$824,000 Maintain Service LevelsMeet DemandExpand Services Programs and outreach$80,000 Supplies, equipment, and overhead$49,000$150,000 Collections$400,000$125,000 Facilities$4,625,000$7,495,000$461,000 Total$4,754,000$8,045,000$586,000 CriticalMeet DemandExpansionCheck Total $461,500$1,950,500$824,000$3,236,000 $405,500$2,006,500$824,000$3,236,000 $56,000($56,000)$0 CriticalMeet DemandExpansionCheck Total $4,754,000$8,045,000$586,000$13,385,000 $4,737,500$8,061,500$586,000$13,385,000 $16,500-$16,500$0 Estimated Ongoing Operating Costs by Priority Level Expand Services Meet Demand Maintain Service Levels $0$512,500$1,025,000$1,537,500$2,050,000$164,000 $190,000 $126,000 Personnel Programs and outreach Supplies, equipment, and overhead Collections Facilities One-Time and Capital Costs by Priority Level Expand Services Meet Demand Maintain Service Levels $0$1,625,000$3,250,000$4,875,000$6,500,000$4,625,000 $7,495,000 $461,000 Programs and outreach Supplies, equipment, and overhead Collections Facilities EXPAND SERVICES MEET DEMAND MAINTAIN SERVICE LEVELS $0 $1,00,000 $2,000,000 $3,000,000 $4,000,000 $3,236,000 $2,412,000 $461,500 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 423 of 607 PART 5 INVESTMENT PRIORITIES & FUNDING FUTURE INVESTMENT STRATEGY CONT. ESTIMATED FUNDED AND UNFUNDED ONE-TIME AND CAPITAL NEEDS BY PRIORITY LEVEL Maintain Service Levels Meet Demand Expand ServicesPersonnel$229,000 $1,145,000 $684,000Programs and outreach 40000Supplies, equipment, and overhead$68,500 75500 $14,000Collections$500,000Facilities$164,000 $190,000 $126,000Total$461,500 $1,950,500 $824,000Maintain Service Levels Meet Demand Expand ServicesPrograms and outreach$80,000Supplies, equipment, and overhead$49,000 $150,000Collections$400,000 $125,000Facilities$4,625,000 $7,495,000 $461,000Total$4,754,000 $8,045,000 $586,000CriticalMeet Demand Expansion Check Total$461,500$1,950,500 $824,000 $3,236,000 $405,500$2,006,500 $824,000 $3,236,000 $56,000($56,000)$0 CriticalMeet Demand Expansion Check Total $4,754,000$8,045,000 $586,000 $13,385,000 $4,737,500$8,061,500 $586,000 $13,385,000 $16,500-$16,500 $0 Estimated Ongoing Operating Costs by Priority Level Expand ServicesMeet DemandMaintain Service Levels $0$512,500$1,025,000$1,537,500$2,050,000$164,000 $190,000$126,000 Personnel Programs and outreach Supplies, equipment, and overhead Collections Facilities One-Time and Capital Costs by Priority Level Expand Services Meet Demand Maintain Service Levels $0$1,625,000$3,250,000$4,875,000$6,500,000$4,625,000 $7,495,000 $461,000 Programs and outreach Supplies, equipment, and overhead Collections Facilities MAINTAIN SERVICE LEVELS MEET DEMAND EXPAND SERVICES $0 $3,000,000 $6,000,000 $9,000,000 $12,000,000 $4,754,000 $11,099,000 $11,685,000 Removing one-time and capital cost estimates that may be funded by the Library Fund, Library Fund Reserve, Library FR&R Fund, Development Excise Tax and/or Impact Fees, the unfunded one-time and capital cost estimates are shown in the graph below. The $3.7 million library facilities maintenance backlog represents the largest portion of these unfunded needs. An estimate for the renovation of the Main Library north building is pending a renovation feasibility study and is not included in the totals. That cost will be prioritized as Expand Services when it is known. ESTIMATED UNFUNDED ONE-TIME AND CAPITAL NEEDS BY PRIORITY LEVEL Maintain Service Levels Meet Demand Expand Services Personnel$229,000 $1,145,000 $684,000 Programs and outreach 40000 Supplies, equipment, and overhead$68,500 75500 $14,000 Collections $500,000 Facilities$164,000 $190,000 $126,000 Total$461,500 $1,950,500 $824,000 Maintain Service Levels Meet Demand Expand Services Programs and outreach$80,000 Supplies, equipment, and overhead$49,000 $150,000 Collections $400,000 $125,000 Facilities$4,625,000 $7,495,000 $461,000 Total$4,754,000 $8,045,000 $586,000 CriticalMeet Demand Expansion Check Total $461,500$1,950,500 $824,000 $3,236,000 $405,500$2,006,500 $824,000 $3,236,000 $56,000($56,000)$0 CriticalMeet Demand Expansion Check Total $4,754,000$8,045,000 $586,000 $13,385,000 $4,737,500$8,061,500 $586,000 $13,385,000 $16,500-$16,500 $0 Estimated Ongoing Operating Costs by Priority Level Expand Services Meet Demand Maintain Service Levels $0$512,500$1,025,000$1,537,500$2,050,000$164,000 $190,000 $126,000 Personnel Programs and outreach Supplies, equipment, and overhead Collections Facilities One-Time and Capital Costs by Priority Level Expand Services Meet Demand Maintain Service Levels $0$1,625,000$3,250,000$4,875,000$6,500,000$4,625,000 $7,495,000 $461,000 Programs and outreach Supplies, equipment, and overhead Collections Facilities MEET DEMAND MAINTAIN SERVICE LEVELS $0 $500,000 $1,000,000 $3,000,000 $5,000,000 $4,354,000 $4,087,500 76 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 424 of 607 $0 $3,000,000 $6,000,000 $9,000,000 $12,000,000 $0 $500,000 $1,000,000 $3,000,000 $5,000,000 To show the investment by expenditure area, the ongoing operating, and one-time and capital costs are organized by the following broad categories: • Personnel • Programs and outreach • Supplies, equipment and overhead • Collections • Facilities In these graphs, the budget priority levels are not shown as additive. Ongoing facilities costs include security services funded by the library’s operating budget. They also include ongoing facilities costs that are managed by FAM for janitorial services and catch up funding for Operation and Maintenance, Major Maintenance and Renovation and Replacement funding ($63,000) which are currently underfunded. UNFUNDED ONGOING ANNUAL OPERATING COST ESTIMATES BY EXPENDITURE CATEGORY AND BUDGET PRIORITY LEVEL Facilities Collections Supplies, Equipment & Overhead Programs & Outreach Personnel Maintain Service Levels Meet Demand Expand ServicesPersonnel$229,000 $1,145,000 $684,000Programs and outreach 40000Supplies, equipment, and overhead$68,500 75500 $14,000Collections$500,000Facilities$164,000 $190,000 $126,000Total$461,500 $1,950,500 $824,000Maintain Service Levels Meet Demand Expand ServicesPrograms and outreach$80,000Supplies, equipment, and overhead$49,000 $150,000Collections$400,000 $125,000 Facilities$4,625,000 $7,495,000 $461,000 Total$4,754,000 $8,045,000 $586,000 CriticalMeet Demand Expansion Check Total $461,500$1,950,500 $824,000 $3,236,000 $405,500$2,006,500 $824,000 $3,236,000 $56,000($56,000)$0 CriticalMeet Demand Expansion Check Total $4,754,000$8,045,000 $586,000 $13,385,000 $4,737,500$8,061,500 $586,000 $13,385,000 $16,500-$16,500 $0 Estimated Ongoing Operating Costs by Priority Level Expand Services Meet Demand Maintain Service Levels $0$512,500$1,025,000$1,537,500$2,050,000$164,000 $190,000 $126,000 Personnel Programs and outreach Supplies, equipment, and overhead Collections Facilities One-Time and Capital Costs by Priority Level Expand Services Meet Demand Maintain Service Levels $0$1,625,000$3,250,000$4,875,000$6,500,000$4,625,000 $7,495,000 $461,000 Programs and outreach Supplies, equipment, and overhead Collections Facilities MAINTAIN SERVICE LEVELS MEET DEMAND EXPAND SERVICES $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $1,950,500 $461,500 $824,000 77 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 425 of 607 PART 5 INVESTMENT PRIORITIES & FUNDING These cost estimates include addressing the current facilities maintenance backlog ($3.7 million in Maintain Service levels) which is unfunded, the north Boulder branch library construction ($6.2 million in Meet Demand) which is primarily funded from the Community, Culture, and Safety Tax, and the Main Library restroom renovation ($650,000 in Maintain Service Levels) which is funded by the old Library Fund reserve. The facilities and collection cost estimate for the Gunbarrel Corner Library represents the total for Expand Services. FINANCIAL SUSTAINABILITY 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 (Appendix C).  However, evaluating performance on a per capita basis does not accurately represent actual use. Further, evaluating or basing funding solely on a per capita basis does not address the impacts of use by patrons that reside outside of the legal service area. Boulder is a regional hub for employment and for library use. 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 (Appendix D). If library funding and metrics are analyzed per registered user (cardholder), BPL drops down into the lower third in funding for Colorado.     FUNDED AND UNFUNDED ONE-TIME/CAPITAL COST ESTIMATES BY EXPENDITURE CATEGORY AND BUDGET PRIORITY LEVEL Facilities Collections Supplies, Equipment & Overhead Programs & Outreach Personnel Maintain Service Levels Meet Demand Expand ServicesPersonnel$229,000 $1,145,000 $684,000Programs and outreach 40000Supplies, equipment, and overhead$68,500 75500 $14,000Collections$500,000Facilities$164,000 $190,000 $126,000Total$461,500 $1,950,500 $824,000Maintain Service Levels Meet Demand Expand ServicesPrograms and outreach$80,000Supplies, equipment, and overhead$49,000 $150,000Collections$400,000 $125,000Facilities$4,625,000 $7,495,000 $461,000Total$4,754,000 $8,045,000 $586,000CriticalMeet Demand Expansion Check Total $461,500$1,950,500 $824,000 $3,236,000 $405,500$2,006,500 $824,000 $3,236,000 $56,000($56,000)$0 CriticalMeet Demand Expansion Check Total $4,754,000$8,045,000 $586,000 $13,385,000 $4,737,500$8,061,500 $586,000 $13,385,000 $16,500-$16,500 $0 Estimated Ongoing Operating Costs by Priority Level Expand ServicesMeet DemandMaintain Service Levels $0$512,500$1,025,000$1,537,500$2,050,000$164,000 $190,000$126,000 Personnel Programs and outreach Supplies, equipment, and overhead Collections Facilities One-Time and Capital Costs by Priority Level Expand Services Meet Demand Maintain Service Levels $0$1,625,000$3,250,000$4,875,000$6,500,000$4,625,000 $7,495,000 $461,000 Programs and outreach Supplies, equipment, and overhead Collections Facilities MAINTAIN SERVICE LEVELS MEET DEMAND EXPAND SERVICES $0 $2,000,000 $3,500,000 $5,000,000 $6,500,000 $5,795,000 FUTURE INVESTMENT STRATEGY CONT. $4,625,000 $461,000 78 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 426 of 607 *A Revolution of Rangeview Libraries, Adams County, CO | SOURCE: Library Research Service – 2016 Colorado Public Library Statistics 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.     The Library is committed to: • Serving the community well, implementing a budget strategy that provides appropriate funding with transparent administration; • Efficiently managing community resources to provide high-value services through the effective stewardship of public funds; • Developing a ten-year library capital needs plan and funding strategy; • Maintaining the current assets to meet industry standards; and • Securing funding sources that will provide financial sustainability and resources to address evolving community needs and priorities. BPL staff and Library Commission will work in collaboration with the City Manager’s Office and the City Council to identify, evaluate the options, select and implement a financial strategy to maintain service levels, meet community demand, and expand services to address future community growth. BPL is fortunate to have the community’s support. Seventy-two percent of respondents to the library master plan community survey indicated they would “support” or “strongly support” increasing their taxes to pay for library services. Further investigation is needed to understand the best option to obtain increased and stable funding for the library. BOULDER PUBLIC LIBRARY ANYTHINK LIBRARIES* LONGMONT PUBLIC LIBRARY POUDRE RIVER PUBLIC LIBRARY DISTRICT PUEBLO CITY-COUNTY LIBRARY DISTRICT WESTMINISTER PUBLIC LIBRARY Per Registered Borrower Per Capita $0 $35 $70 $105 $140 COMPARISON OF OPERATING EXPENDITURES $0 $2,000,000 $3,500,000 $5,000,000 $6,500,000 79 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 427 of 607 PART 5 INVESTMENT PRIORITIES & FUNDING OPTIONS FOR INCREASED MUNICIPAL FUNDING Funding the Master Plan goals represents a significant financial investment estimated to be as much as a $20 million total increase in costs to the city budget over five years – approximately $3 to $3.5 million in annual ongoing operating costs and $1 million in annual unfunded one-time and capital expenses. Additional revenues will need to be secured in addition to the current-level of annual appropriations from the General Fund to fund library needs. Capital projects are reviewed and considered in the Capital Improvement Program (CIP) that is part of the city’s annual budget process. The following options to increase municipal funding for BPL assume that the current level of budget support provided from the General Fund remains constant, approximately $6.4 million annually, unless otherwise indicated. The two major sources of general fund revenue are sales and use tax and property tax. Sales and use tax is a volatile revenue source while property tax is a more stable revenue source. Reallocate Current City Funds To keep the city’s budget balanced, a change in the allocation of resources requires moving currently allocated resources from one program or service to another. If the decision is made to reallocate current General Fund resources from other general fund programs to the library, it would require a reduction in other general fund city services (fire; police; parks and recreation; and city support services such as finance, Human Resources, Planning, Housing and Sustainability, Public Works, and the City Manager’s Office). The changes would be accomplished through the annual budget process. The actual impact on current programs would be known once the budget trade-offs were proposed. Request Voters Dedicate an Additional Increment of Sales Tax for the Library Proposals for a sales tax increase require an ordinance from City Council prior to putting the proposed changes to a vote. The current sales and use tax rate in the city is 3.86 percent. There is an additional 0.15 percent tax on prepared food only and the revenue is dedicated to the Boulder Visitors and Convention Bureau. Each one-tenth of a cent increase in sales and use tax currently generates approximately $3.3 million annually. When fully implemented, the master plan costs are estimated to require an increase of 0.12 percent in sales and use tax. This would increase the city sales and use tax rate to 3.98 percent (4.13 percent on prepared foods). See the Regional Sales and Use Tax Rates table below for comparison to other cities in the region. Request Voters Dedicate a New Property Tax for the Library Proposals for a property tax increase also require an ordinance from City Council prior to putting the proposed changes to a vote. Option 1: Reallocate current city property taxes to dedicate a greater share to library services. Article IX, section 13416 of the City Charter includes language specifying the library’s current portion of city property taxes. Even though reallocating current property taxes would not result in an overall increase, this part of charter would need to be amended by the voters to dedicate more of the current mill levy for library purposes. 16 The Charter of the City of Boulder, article IX, section 134. library.municode.com/co/boulder/codes/municipal_code?nodeId=THCHBOCO_ARTIXADCO_LICO_S134LIFU 80 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 428 of 607 17 The Charter of the City of Boulder, article VI, section 94. library.municode.com/co/boulder/codes/municipal_code?nodeId=THCHBOCO_ARTIXADCO_LICO_S134LIFU Option 2: Request voters increase the city property tax mill levy and dedicate the amount needed to fully fund library services. In addition to City Charter article IX, section 134 specifying the share of city property taxes dedicated to the library, article VI, section 9417 imposes a 13-mill cap on the total property tax that can be levied by the City. Increasing the cap and dedicating the amount needed to fully fund library services requires voter-approved changes to both articles in the City Charter. Once approved by the voters, budget reallocations to distribute the current sales and use tax revenues that are appropriated to the library could occur during the annual budget process or via a supplemental appropriation. New library master plan program costs will occur over several years and the increase in the property tax mill levy could be phased in to correspond to the implementation of the new services. An increase in the overall mill levy allowed by the charter would support library needs and could allow the city additional headway to fund other city projects in the event other needs arise in the next decades. Regional Sales and Use Tax Rates CITY LOCAL PERCENT TAX RATE TOTAL PERCENT TAX RATE LOCAL TAX RATE IF COB INCREASED .12 % Broomfield 4.15 8.15 4.15 Boulder 3.86 8.845 3.98 Fort Collins 3.85 7.30 3.85 Denver 3.65 7.65 3.65 Lafayette 3.50 8.485 3.50 Louisville 3.65 8.635 3.65 Arvada 3.46 8.21 3.46 Longmont 3.53 8.515 3.53 Golden 3.00 7.50 3.00 Loveland 3.00 6.45 3.00 SOURCE: 2018 Colorado Department of Revenue – Taxation Division. Total rate may be different in city is in more than one county. 81 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 429 of 607 PART 5 INVESTMENT PRIORITIES & FUNDING 18 Taxpayer Bill of Rights (TABOR) Amendment passed in 1992. TABOR prohibits any tax increase without a vote of the people. In addition, TABOR places strict limits on how much revenue the state can keep and how much it can spend. 19 Gallagher Amendment passed in 1982, was designed to maintain a constant ratio between residential property tax revenue and business property tax revenue. The effect of Gallagher was to reduce the assessment rate (the percent of property value that is subject to taxation) whenever statewide total residential property values increased faster than business property values. Some Advantages and Challenges of the City Retaining Governance of the Library System and Increasing and/or Reallocating Tax Revenues ADVANTAGES CHALLENGES Library receives internal services from Innovation Technology, Human Resources, City Attorney’s Office, City Manager’s Office, Facilities and Finance. Library must compete with other city priorities for the portion of its budget that is not dedicated. Diversified revenue streams balance economic volatility. The city can ask the voters to lift the caps imposed by the Taxpayer Bill of Rights (TABOR) Amendment18 or “de-Bruce”. State budget limits and constitutional limits, such as TABOR and the Gallagher Amendments apply to library districts. The effect of the Gallagher Amendment means a disproportionate amount of property tax is placed on commercial property.  “De-Brucing” requires voter approval. City of Boulder general fund contribution of approximately $7 million annually (2018) generated from sales tax revenue would no longer need to be used to support the library.  Sales and use taxes are not a stable form of revenue and are regressive. In general, property tax is a stable form of revenue.Raising the mill levy cap on property taxes must be approved by the voters. Increase the rates for sales and use or property taxes must be approved by the voters. Campaign and election process requires time and monetary resources. Property taxes are subject to periodic property devaluations that could result in service reductions.  82 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 430 of 607 LIBRARY DISTRICT FUNDING & GOVERNANCE Another option to increase library funding would be to form a library district. Library districts are the most common form of governance and funding for libraries in Colorado. One third of BPL cardholders reside outside of Boulder city limits. Forming a library district would capture funding from residents outside the city limits that the library serves. See the following appendices for information related to forming a library district. • A summary of the cities and counties where current BPL cardholders reside - Appendix E. • A map of current BPL patron households within the Boulder Valley Comprehensive Plan area and outlying areas - Appendix F.  • A map of Colorado library jurisdictions - Appendix G.   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 only the city limits, the City Council would appoint a library district board. If a library district’s boundaries include areas outside of the city limits, City Council will coordinate with the County Commissioners to appoint the board members. 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. See Appendix H for a map of areas to possibly include within a library district. The first year of transition to a district is complicated and would require a large commitment from the board and staff. There are several transition costs and ongoing costs that would have to be negotiated by the district and the city and county. These costs include: election costs, facilities insurance, employee benefits, Public Employee Retirement Association pension liability for all district employees, facilities maintenance, communications, Information Technology services and maintenance, Human Resources and legal services. The Colorado State Library website has information about Colorado Library Law and other state laws that impact libraries, and legal documents for library districts in the state. These resources provide examples and guidance for forming and administering a library district. 83 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 431 of 607 PART 5 INVESTMENT PRIORITIES & FUNDING Some of the Advantages and Challenges of Forming a Library District ADVANTAGES CHALLENGES Funding is secured directly from dedicated tax revenues rather than competing with other city or county departments.  Introduction of a new tax that requires voter approval.  A library district can ask the voters to lift the caps imposed by the Taxpayer Bill of Rights (TABOR) Amendment or “de-Bruce”. Campaign and election process requires time and monetary resources. The 0.333 property tax mill levy for Boulder property owners to fund libraries may be rescinded. More investigation is required to determine this.  State budget limits and constitutional limits, such as TABOR and the Gallagher Amendments apply to city government. The effect of the Gallagher Amendment19 means a disproportionate amount of property tax is placed on commercial property. “De-Brucing” requires voter approval. 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.  Funding is restricted to property taxes which 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.   A single purpose district can enhance accountability to the taxpayers and organizational focus.  The administrative costs the district would have if it entered into direct charge agreements with any of the city’s internal service departments or external vendors could be approximately 15% higher than the overhead costs for these services that are currently covered by the city. Debt can be issued to fund capital projects, but funding received is not solely restricted to capital costs.  The district would assume approximately $5.5 million in unfunded net pension liability and all associated employer contribution requirements. Budgeting is more nimble and responsive to the needs of the community. Unspent annual budget can be retained for future years.  Responsibility for community assets including facilities and the library collection are directly maintained and invested in by the district at the direction of the board and remain in service to the community. 84 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 432 of 607 PART 6IMPLEMENTATION Guided by the new mission, vision and guiding principles, BPL will implement this Master Plan through an annual planning process. It will measure its success by employing several evaluation tools including input from the community to determine the effectiveness of its programs and services and its ability to meet the standards outlined in Part 4 of this plan. BPL’s annual planning process will begin prior to formation of the annual budget request. The Library Commission will be consulted on each step of the process which includes: 1. review of the Master Plan; 2. review of accomplishments and success measures of the initiative for the past year as well as the status of initiatives that were not completed; 3. review and priority of the potential initiatives for the upcoming three years along with preparation of adjusted cost estimates; 4. development of the annual budget request, policy issues, and success measures for initiatives planned for the upcoming year; 5. mid-year adjustments in the current year plan and the three-year action plan as needed to make the most effective use of resources. This approach will ensure that the Boulder Public Library Master Plan is a living document used to improve the library system in a way that reflects the community’s goals well into the future. 85 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 433 of 607 APPENDIX: A BENCHMARK COMPARISON BOULDER PUBLIC LIBRARY ANYTHINK LIBRARIES LONGMONT PUBLIC LIBRARY POUDRE RIVER PUBLIC LIBRARY DISTRICT PUEBLO CITY- COUNTY LIBRARY DISTRICT WESTMINISTER PUBLIC LIBRARY2 ANN ARBOR DISTRICT LIBRARY4 AUSTIN PUBLIC LIBRARY5 CLEVELAND HEIGHTS- UNIVERSITY HEIGHTS PUBLIC LIBRARY6 MADISON PUBLIC LIBRARY7 SKOKIE PUBLIC LIBRARY8 SERVICE AREA COLORADO LIBRARIES NATIONAL LIBRARIES Service Area Population 107,291 377,353 92,633 196,103 163,348 112,737 163,590 931,830 57,867 247,206 65,000 Registered Borrowers 140,607 113,919 85,686 156,544 137,521 118,039 -570,446 45,778 170,420 - Total Operating Revenue $7,512,839 $15,709,919 $3,536,289 $9,470,178 $10,029,642 $3,121,085 $13,810,936 $43,187,679 $11,514,484 $18,114,656 $12,659,000 Total Operating Expenditures $7,662,840 $15,548,956 $3,332,227 $9,300,474 $9,847,133 $3,625,655 $12,231,842 $42,017,519 $8,503,725 $18,114,656 $12,659,000 Total Operating Expenditures Per Capita $71 $41 $36 $47 $60 $32 $75 $42 $147 $73 $195 Total Operating Expenditures Per Registered Borrower $54 $136 $39 $59 $72 $31 -$74 $186 $106 - STAFF Staff Expenditures $5,084,454 $6,518,942 $2,546,637 $5,685,104 $5,068,852 $2,700,748 $7,661,577 $28,677,278 $5,395,371 $11,474,221 $6,456,000 Staff Expenditures as Percentage of Total Operating Expenditures 66%42 76%61 51%74%63%68%63%63%51% Staff per 1,000 Patrons Served 0.70 0.31 0.49 0.51 0.62 0.37 -0.53 2.30 1.06 - Staff per 10,000 Circulation 0.51 0.54 0.47 0.33 0.40 0.53 -4.96 7.10 12.49 5.15 Total Staff (FTE)75.50 118.63 45.50 100.00 101.75 41.98 -301.96 105.20 180.50 113.00 Staff Expenditures Per Capita $47 $17 $27 $29 $31 $24 $47 $31 $93 $46 $99 VISITS Total Visits 982,648 1,200,700 600,174 1,021,350 1,460,368 408,676 1,564,780 3,203,534 867,100 2,167,674 817,065 Total Visits Per Capita 9.16 3.18 6.48 5.21 8.94 3.63 9.57 3.44 14.98 8.77 12.57 - = Not Available 1 Library Research Service. Colorado Public Library Statistics and Profiles. www.lrs.org. Accessed 6/19/2018 2 Westminster Public Library serves as a library for all local Front Range Community College students and community residents. 3 Turn over Rate = the number of materials checked out relative to the size of the collection. It is the number of materials circulated divided by the number of physical materi- als held. Turnover rate indicates how often each item in the collection was lent, thus this measure is relevant to use of the collection. It may be useful to compare this figure to selected inputs such as Volumes per Capita, and outputs such as Circulation per Capita and ILLs per 1,000 Circulation. 4 Library of Michigan. Michigan Public Library Statistics Reports. mi.countingopinions.com/index.php?page_id=7 5 Texas Public Library Statistics. www.tsl.texas.gov/ld/pubs/pls/index.html 6 State Library of Ohio. 2016 Ohio Public Library Statistics. library.ohio.gov/documents/2016-ohio-public-library-statistics 7 Wisconsin Department of Public Instruction. PRELMINARY 2016 Wisconsin Public Library Service Data. dpi.wi.gov/pld/data-reports 8 2015 data reported by Skokie Public Library. Margaret Sullivan Studio. Boulder Public Library Benchmark Comparison Study. boulderlibrary.org/wp-content/uploads/2018/05/2017-03-17_Boulder-Benchmark-Comparison-Document-with-Appendix.pdf 86 87 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 434 of 607 BOULDER PUBLIC LIBRARY ANYTHINK LIBRARIES LONGMONT PUBLIC LIBRARY POUDRE RIVER PUBLIC LIBRARY DISTRICT PUEBLO CITY-COUNTY LIBRARY DISTRICT WESTMINISTER PUBLIC LIBRARY2 ANN ARBOR DISTRICT LIBRARY4 AUSTIN PUBLIC LIBRARY5 CLEVELAND HEIGHTS- UNIVERSITY HEIGHTS PUBLIC LIBRARY6 MADISON PUBLIC LIBRARY7 SKOKIE PUBLIC LIBRARY8 CIRCULATION COLORADO LIBRARIES NATIONAL LIBRARIES Total Circulation 1,473,520 2,199,127 967,026 3,029,687 2,559,461 791,944 6,871,651 6,091,175 1,481,796 1,444,804 2,193,111 Total Circulation Per Capita 13.73 5.83 10.44 15.45 15.67 7.02 42.01 6.54 25.61 5.84 33.74 Total Collection Expenditures $1,074,683 $2,025,765 $453,836 $1,155,444 $1,371,086 $437,314 $1,815,808 $3,781,586 $1,133,624 $1,005,983 $1,501,480 Collection Expenditures Per Capita $10.02 $5.37 $4.90 $5.89 $8.06 $3.88 $11.10 $4.06 $19.59 $4.07 $23.10 Materials Expenditures as a Percentage of Total Operating Expenses 14%13%14%12%13%12%15%9%13%6%12% Turnover Rate (physical collection)3 4.80 5.34 3.68 6.82 7.80 4.16 -3.48 - - - PROGRAMS Total Programs 3,260 3,150 1,928 1,736 5,644 1,391 1,649 8,862 2,922 5,262 2,455 Total Program Attendance 102,072 62,745 59,354 66,502 227,555 27,356 114,544 237,775 54,286 110,744 63,692 Total Program Attendance per 1,000 Served 951.36 166.28 640.74 339.12 1,393.07 242.65 -416.82 1,185.85 649.83 - Summer Reading Registrants 3,523 14,877 2,819 8,384 7,098 5,214 --2,869 8,165 4,081 WEBSITE Total Annual Website Visits 719,105 950,423 178,015 1,628,199 2,285,819 197,621 -21,838,222 - -702,921 Circulation of Electronic Collection 136,605 323,215 53,305 373,328 213,654 45,831 414,451 1,066,809 151,748 282,027 - - = Not Available 1 Library Research Service. Colorado Public Library Statistics and Profiles. www.lrs.org. Accessed 6/19/2018 2 Westminster Public Library serves as a library for all local Front Range Community College students and community residents. 3 Turn over Rate = the number of materials checked out relative to the size of the collection. It is the number of materials circulated divided by the number of physical materi- als held. Turnover rate indicates how often each item in the collection was lent, thus this measure is relevant to use of the collection. It may be useful to compare this figure to selected inputs such as Volumes per Capita, and outputs such as Circulation per Capita and ILLs per 1,000 Circulation. 4 Library of Michigan. Michigan Public Library Statistics Reports. mi.countingopinions.com/index.php?page_id=7 5 Texas Public Library Statistics. www.tsl.texas.gov/ld/pubs/pls/index.html 6 State Library of Ohio. 2016 Ohio Public Library Statistics. library.ohio.gov/documents/2016-ohio-public-library-statistics 7 Wisconsin Department of Public Instruction. PRELMINARY 2016 Wisconsin Public Library Service Data. dpi.wi.gov/pld/data-reports 8 2015 data reported by Skokie Public Library. Margaret Sullivan Studio. Boulder Public Library Benchmark Comparison Study. boulderlibrary.org/wp-content/uploads/2018/05/2017-03-17_Boulder-Benchmark-Comparison-Document-with-Appendix.pdf APPENDIX: A BENCHMARK COMPARISON 88 89 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 435 of 607 WHAT OUR COMMUNITY SAYS ABOUT BPL Results from the 2016 Boulder Community Survey show strong satisfaction of respondents with library services. They also reveal opportunities to improve access to services in Gunbarrel and improve outreach to Latinx members of the community. OVERALL RESULTS Rated BPL as “good” or “excellent”94% Use the library at least once per month 69% City of Boulder 2016 Community Survey Overall Results about Library Services SOURCE: City of Boulder 2016 Community Survey The satisfaction ratings improved from the 2014 survey results. The frequency of library use is similar to the national benchmark for this survey. CENTRAL BOULDER NORTH CENTRAL BOULDER SOUTH CROSS - ROADS & CU EAST BOULDER & GUNBARREL NORTH BOULDER & PALO PARK SOUTH BOULDER SOUTHEAST BOULDER Rated BPL as “good” or “excel- lent” 95%98%95%87%93%94%94% Use the library at least once per month 75%80%51%57%75%81%65% City of Boulder 2016 Community Survey Geographic Crosstab Results about Library Services SOURCE: City of Boulder 2016 Community Survey A geographic crosstab of the results showed slightly fewer Gunbarrel respondents rated the library as excellent or good, compared to respondents in the other areas of the city. The number of “Crossroads & CU” and “East Boulder & Gunbarrel” respondents that reported using the library at least once per month was about 20 percent less than respondents from other areas in the city. APPENDIX: B COMMUNITY PRIORITIES & NEEDS ASSESSMENT SUMMARY 90 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 436 of 607 WHITE ALONE, NOT HISPANIC HISPANIC AND/OR OTHER RACE Rated BPL as “good” or “excellent”95%88% Use the library at least once per month 70%65% City of Boulder 2016 Community Survey Demographic Crosstab Results about Library Services SOURCE: City of Boulder 2016 Community Survey The demographic crosstab of results showed that respondents who identified as “Hispanic and/or other race” who rated the library as excellent or good were five-percent less than the other groups. These relatively lower ratings of library service between groups may correlate to the feedback received from the community during the master planning activities regarding accessibility to library services and represent potential opportunities for improvement. MASTER PLAN COMMUNITY INPUT The best part of the library’s master planning process was the opportunity to learn from the community what they want for the future of the library. Library staff and the Library Commissions appreciated hearing what patrons value about the library and how it might better meet their needs. Input was collected over several months and during a variety of engagement activity. Reports summarizing the input received during each of these activities is available at boulderlibrary.org/about/library-master-plan. Highlights from those summaries are described below. BPL Master Plan Community Survey The Community Engagement and Feedback Report summarizes community input received from the Master Plan community survey and several focus groups that were conducted by consultants Joining Vision and Action LLC. Most respondents identified as white (84 percent) with Hispanic or Latinx respondents representing a significantly smaller number (3.8 percent). The report outlined BPL’s key strengths and key needs or gaps as: Key Strengths Overall, feedback gathered through both the survey and the focus groups was positive regarding the library overall, the staff and programs. The following stood out as particular strengths: • Library has a strong base of support • Library seen as valuable resource for youth and children • Staff interactions highly rated and valued 91 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 437 of 607 MASTER PLAN COMMUNITY INPUT CONT. Key Needs or Gaps Some needs or gaps also arose from the feedback received. These points are opportunities for BPL to improve services and have all been incorporated into the Master Plan goals. These needs are as follows: • Residents in North Boulder and Gunbarrel feel underserved by current library facilities • Increased awareness of library’s offerings • Bilingual services may not be adequate or there is a lack of awareness of available services • Create a community forum and act as a catalyst for community engagement • Serve as a gathering place for diverse populations to promote inclusion and participation of both majority and various minority groups Respondents were asked to rate the library strengths as being a good place for children and youth and to engage in several activities. The results are in the graph below. THE LIBRARY IS A GOOD PLACE FOR... CONDUCTING BUSINESS EATING LUNCH OR GETTING A BEVERAGE MEETING WITH FRIENDS RELAXING HANDS-ON LEARNING SEEKING HELP WITH BOOK RECOMMENDATIONS SEEKING HELP WITH RESEARCH READING OR STUDYING ATTENDING PROGRAMS ATTENDING & PARTICIPATING IN COMMUNITY EVENTS YOUTH & CHILDREN 0 1.1 2.2 3.3 4.4 2.9 3.02 3.32 3.66 3.75 3.93 3.97 4.16 4.16 4.18 4.4 Average Rating Where 1 = Strongly Disagree & 5 = Strongly Agree SOURCE: 2017 Community Engagement and Feedback Report, Joining Vision and Action LLC APPENDIX: B COMMUNITY PRIORITIES & NEEDS ASSESSMENT SUMMARY 92 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 438 of 607 Respondents aged 65+ rated all areas lower than respondents in all other age groups. This aligns with national trends for how this age group rates library services in general. Considering that this demographic is expected to grow dramatically during the next decade, this may indicate an opportunity to cultivate greater connection with patrons of this age group to better understand how library services could be designed to better serve them. Respondents aged 35 and younger rated the library highest for being a good place to study or read. With this age group being the most likely to be in school, it appears the library is rated highest in providing reading and studying space to those who need it the most. AVERAGE ALLOCATION PERCENTAGE OF CAPITAL FUNDS EXPAND VENUES FOR COMMUNITY IMPROVE THE CANYON THEATRE EXPAND VENUES FOR PERFORMING ARTS INTERIOR REMODEL OF THE LIBRARY NEAREST MY NEIGHBORHOOD HOLD ONTO THE FUNDS FOR A FUTURE PROJECT EXPAND THE MAKERSPACE OTHER USE IT TO MAINTAIN CURRENT FACILITIES AT A HIGH LEVEL BUILDING NEW LIBRARY IN MY NEIGHBORHOOD 0 10% 20% 30% 40% 0.165 0.174 0.177 0.189 0.206 0.208 0.351 0.366 0.39 SOURCE: 2017 Community Engagement and Feedback Report, Joining Vision and Action LLC Respondents were given an imaginary $100 to spend in the areas listed in the graph above. On average, respondents spent 39 percent of their allotment on building a new library in their neighborhood and 36 percent on maintain current facilities at a high level. Overall, library patrons value existing library facilities and want them maintained at a high level. By far, the most common destination for allocation of capital funds was maintaining current facilities. The responses were cross-tabulated with the area of the city that respondents said they resided. The results showed that Gunbarrel residents strongly desire a new library. Gunbarrel respondents were the only area to allocate more funds toward a new library than toward maintaining current facilities. Some respondents who identified North Boulder as the area of the city in which they reside desire to have a new library location. These respondents contributed, on average, 40 percent of their allocation to new library in their neighborhood. The most common request under the ‘other’ item was to use the funds to increase the library’s physical and digital collections. Some of the other more common requests were to allocate funds to: • Address the perceived issues created by the homeless population in the library (i.e., occupied seating and issues of safety) • More activities and programs for children • Increase access through drop-off areas or mobile libraries • To offer more events such as author readings • To extend the hours the libraries are open 93 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 439 of 607 Respondents were given an imaginary $100 to spend on operating budget items. Respondents value physical media. Both the highest average allocation and the greatest total allocation of operating funds went toward more physical media. Respondents were asked a series of questions to evaluate how well the library is meeting their needs, the needs of members of their household, and how well they think it is meeting the needs of the community. Overall, the ratings were positive. Boulder residents rated the library better at meeting their own needs than the needs of their community. Gunbarrel and North Boulder respondents rate the library lowest for meeting the needs of the community. Gunbarrel residents rated the library, on average, a point lower than any other Boulder neighborhood indicating that BPL may not fully meet their needs. Respondents aged 45–54 years rated the library lowest for meeting their needs and the needs of their household. While in general, lower income respondents tend to rate the library as meeting their needs better than higher income respondents. Respondents were asked to select their preferences from a list of ways in which they could support the library then they were asked how likely they would be to support a tax increase for library funding. Respondents aged 65 and older represent the largest group who support the library by volunteering. Patrons who identified as making $80,000 to $200,000 per year household income were the largest group who are willing to donate. Seventy-one percent of respondents are likely or very likely to support tax increase for the library. A higher percentage of Hispanic and Latinx respondents indicated never using the library website or app than other ethnic groups. They also rated their interactions with staff slightly lower and rated the library lower for meeting their needs. Overall the library rated lowest by Spanish speaking survey respondents. This may indicate a potential gap in library services meeting the needs of these individuals and the needs of members of their households. Hispanic or Latinx respondents were also less supportive of voting for a tax increase to fund the library. SOURCE: 2017 Community Engagement and Feedback Report, Joining Vision and Action LLC AVERAGE ALLOCATION PERCENTAGE OF CAPITAL FUNDS MORE BOOKS, DVDS, CDS, ETC. MORE E-BOOKS, AUDIOBOOKS, STREAMING MORE LIBRARY STAFF MORE COMMUNITY SPACE 0 11% 21% 32% 42% 0.284 0.356 0.401 0.284 MASTER PLAN COMMUNITY INPUT CONT. APPENDIX: B COMMUNITY PRIORITIES & NEEDS ASSESSMENT SUMMARY 94 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 440 of 607 BPL Master Plan Focus Groups Participants in focus groups facilitated by Joining Vision and Action LLC said BPL’s facilities are welcoming and offer a comfortable atmosphere. They appreciate access to the open interior spaces, study rooms and meet- ing rooms and consider the availability of computers for use a strength. The Main Library and the Meadows Branch Library were identified as facilities providing con- venient access. The BLDG61 Makerspace was one of the most recognized and appealing aspects of the library according to the focus groups, and the Seeds Café at the Main Library was identified as a convenient location to visit when visiting the library. Participants said the library is a family friendly space that offers a variety of resources for parents and their children to enjoy together. Bilingual story time was identified as being a strength of the library, and some suggested expanding the offerings into more languages. Partici- pants mentioned how valuable it is to have these kinds of programs every day of the week at all the different branches. Moreover, children’s programs were especially liked and discussed positively by Spanish-speaking partic- ipants, who mentioned the importance of programs for children for their families as an effective way to become more involved in the community and form connections. The diverse variety of events offered by the library allows people beyond frequent library users to access many of its great resources. They expressed the view that the library offers a sense of community. Participants pointed out that the staff and the librarians are “very knowledgeable.” Participants perceive them as being “real resources” that are always available to help and answer questions, which, according to one partici- pant, is especially true and important for homeschooled kids. Moreover, participants feel they can count on staff to give good book recommendations. Participants all agreed that staff at the Boulder libraries often put in the effort to be friendly and helpful when they visited. Participants agreed that one of the most important areas of improvement for the library is getting the word out about all that the library offers. Ideas for improving communication about what is available at the library included: a physical booklet sent to community homes, a more streamlined website, website links on other Boulder sites, paper resources available to all residents, using the Nextdoor social media tool, more publicity with the newsletter, and advertisements on Channel 8. Additionally, participants pointed out that a more con- sistent language and labeling of resources such as BLDG 61 and the Canyon Theater would emphasize features for those who are not aware of the library’s resources. Participants agreed they would like to see the popular- ity of the library grow and for the library to bring differ- ent kinds of people other than those who already visit. Another priority identified was an improved digital experience for library users. Participants agree that the library could do more to make its digital space more appealing and useful by adding the following features: notify the holder when a book cannot be found, create a more streamlined system for accessing digital books, include Overdrive as opposed to Hoopla to shorten waiting time, and improve the website to make it more user friendly, particularly the mobile version. Providing more classes to adults was another idea dis- cussed in multiple focus groups. Participants asked for more technology classes such as computer programming, coding and smartphone use. Additionally, participants suggested including more general art classes as part of the program offerings. Those with children asked for more afterschool and summer school programs for their Kinder- garten through fifth grade students. They also asked for more classes Latinx for families, children’s crafts hands-on classes, and reading clubs or groups for kids. There was extensive discussion by participants about using the library as a safe space to hold community forums for discussions. They mentioned wanting to be engaged in more political discussions, conversations with community leaders and more cultural gatherings. (cont. pg. 90) 95 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 441 of 607 BPL Master Plan Focus Groups Cont. Multiple participants viewed the BLDG 61 Makerspace as one of the major assets of the library. However, many other participants expressed difficulty in connecting with the space due to class availability and size. Overall, participants suggested that there could be more convenient and accessible programs or classes to join, as well as alternative places to gather and create. Many of the focus group participants who speak Spanish said they were unaware of what the library offers in terms of services and resources, which presents a significant barrier to joining or participating. Most information regarding the library’s offerings is not available in Spanish and is not transmitted via avenues that are frequented by Latinx members of the community. Spanish speaking participants shared that language and cultural insecurities are substantial obstacles that keep them from visiting and using the library. Participants commented that many Latinx community members feel isolated or disconnected from the community. North Boulder & Gunbarrel Focus Groups Several Master Plan community survey respondents who volunteered and reside in either North Boulder or Gunbarrel were invited to participate in area specific focus groups. The discussions were facilitated by Trainer Evaluation consulting firm. Results from both sessions underscore the desire for expanded library service in both areas of the city. Participants shared specific input about the type of library programs and services that they value and want to have in a neighborhood branch library. Teen Focus Groups Members of the Youth Opportunities Advisory Board were invited to the BLDG 61 Makerspace to participate in a workshop to share their ideas for library programs and services. Teens serve on the teen advisory groups at the George Reynolds Branch Library and the Main Library were invited to participate in focus groups facilitated by Trainer Evaluation. The teens shared innovative program ideas and suggestions for improving outreach to teens in the community. COMMUNITY PRIORITIES & NEEDS ASSESSMENT While libraries cannot directly solve many of their community’s most pressing issues, such as providing an adequate amount of sustainably paying jobs, affordable housing, accessible and affordable health care and mental health care or substance abuse treatment, they do serve a key role as information centers to connect people with resources. For instance, libraries can help support community members in learning new skills and assist them with improving their employment situation. They also can refer them to social service providers to help find healthcare or end or prevent homelessness. Libraries help build the resilience of the community, often acting as community connectors. Building resilience is not only about disaster preparedness, it is about addressing on a fundamental level, a community’s chronic stressors that weaken the fabric of a city on a day-to-day or cyclical basis. Boulder defines resilience as the capacity of individuals, communities, institutions, businesses, and systems within a city to survive, adapt and thrive no matter what kinds of chronic stresses and acute shocks may be experienced1. The public library is an enduring institution, one that can be counted on by the community to be a resource and a place to go during challenging times. 1 City of Boulder. (2016) City of Boulder Resilience Strategy. www-static.bouldercolorado.gov/docs/Resilience_Strategy_Final_Low-Res-1-201701120822.pdf?_ga=2.253454016.814918035.1527203887-1720780512.1489675207 APPENDIX: B COMMUNITY PRIORITIES & NEEDS ASSESSMENT SUMMARY 96 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 442 of 607 Libraries build relationships and trust among the community and provide meaningful opportunities and social tools for inclusive collaborations in neutral, welcoming spaces. Providing civic spaces that are open and welcome to everyone is an important element to cultivating social sustainability. BPL is a place to learn, access resources, participate in civic life, and get to know your neighbors. Several planning documents and websites of community agencies and the City of Boulder were reviewed to leverage research, community input, and priorities gathered through several other planning processes that identified commu- nity needs. The reviewed resources were chosen because the stated goals or problems to be solved are closely tied to the City of Boulder’s Sustainability Framework outcomes of creating: a livable community; accessible and connected community; economically vital community; and healthy and socially thriving community. Library services directly contribute to these outcomes at some level. Library services have indirect impact on the sustainability framework outcomes of safe community and environmentally sustainable community. Several of the goals from these plans describe forming partnerships with community agencies as a strategy to address the specific priorities. The purpose of the needs assessment was to provide: • Contextual information about the Boulder community’s needs and priorities and identify areas of focus for which the library can support and/or have a positive impact in fulfilling its mission. • A framework for aligning library services to address community needs. • Information about how library service levels should change over time given the context of needs and trends in the community, budget and resource restraints, and changing community preferences and priorities. • How BPL is an integral community asset. In addition to researching planning documents and websites, the library engaged Margaret Sullivan Studio to assist with the needs assessment. The Studio interviewed 16 community leaders to establish a baseline understanding of the library’s current role in the community. Their responses began to identify the community’s needs, its challenges from the individual leaders’ perspectives, the kind of community they want Boulder to be. They were also asked to share their thoughts on the role they believe BPL can serve in reaching that vision. The leaders that participated in these initial interviews represented the library, city government, non-profit agencies, and organizations that currently partner with the library. Their aspirations for Boulder and BPL are summarized as follows: Aspirations for the community • Find more common purpose instead of continuing public conflict – meaningful dialogue happens with common experiences.  • Be more welcoming so persons of all ages and backgrounds can find their own place in Boulder. • Become a greater art and culture scene with places for persons to participate in art, rather than simply observe it.  • Improve the integration process for persons experiencing homelessness into the greater community and create space where they have resources to have constructive days.  • Improve cultural competency so visitors and new immigrant community members feel like there is something for them in Boulder. • Engage everyone on an equal level. This may be accomplished by inviting unexpected persons to serve in leadership roles and create an attitude of “come teach us.” • Cultivate greater trust and understanding between predominantly white and affluent community members and minority or underserved members. • Create pathways of economic and social success for everyone. 97 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 443 of 607 COMMUNITY PRIORITIES & NEEDS ASSESSMENT CONT. Aspirations for BPL • Continue to be the center of the community, the heart. • Continue to be committed to success and pushing the community towards the above goal.  • Continue to be a safe place for persons of all backgrounds, economic situations and needs, where no one is harassed or judged. • Continue to be an integration force and equalizer, and place where people can be without being ‘consumers.’ • Continue to be a family center. • Continue to be a center for knowledge and inspiration for all. • Position BPL as a touchpoint and community facilitator – a bridge between the community and the city government. • Provide a platform for positive civic engagement and be a supportive agent of change, as a neutral space.  • Provide free exhibit and performance space to the city’s art and culture scene. • Connect the library and the tech community in meaningful and mutually beneficial ways.  • Facilitate a sharing economy in that persons are enriched by sharing their own knowledge and experiences with one another.  • Be an experimentation factory. The needs identified through the research and initial interviews with community leaders were further explored with community members to identify the community’s preferences and priorities for library services during focus group discussions, stakeholder meetings, a community survey, and other engagement activities. The findings from the community needs assessment are summarized along with some examples of what BPL is already doing to help the community achieve its goals. Most of these community priorities and needs, organized within four themes, are closely related or interconnected. Supporting Economic Sustainability Boulder is known as a city that uses values-based decision-making with regard to development, growing its economy, increasing economic activity for businesses and revenues for the city. It values minority- and local-owned businesses’ and non-profits’ contribution to creating a healthy economy. A diverse mix of businesses and a skilled workforce are key components for building a strong, resilient economy. Cultivating opportunities to address the income gap. Long-term economic sustainability of a community is realized by cultivating diversity and creating an environment in which all persons have an opportunity to contribute. The Institute for Social and Environmental Transition-International maintains that lower-income people are among the least able to recover from an economic recession or catastrophic event, yet they are often central to the economy and culture of a community. Further, the percentage of Boulder County residents experiencing poverty has grown with a deep and persistent gap between the incomes of Non-Hispanic white and Latinx households. The income gap between those groups in Boulder County is significantly greater when compared to the income gap between those two populations nationwide2. 2 Community Foundation of Boulder County (2015) Boulder County TRENDS. The Community Foundation Report on Key Indicators. issuu.com/commfound/docs/trends-2015_9bc47a2c4a15c6. APPENDIX: B COMMUNITY PRIORITIES & NEEDS ASSESSMENT SUMMARY 98 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 444 of 607 BPL provides free opportunities for low-income and immigrant community members to build a range of 21st century literacy skills through the BoulderReads adult literacy program, the BLDG61 Makerspace skill-building workshops, and Conversations in English meetings so that they may improve their employment situation. In collaboration with community partners, BPL could expand its offering of these types of programs and improve its outreach to serve these community members at times and in places that are convenient to them. Education and skill development. Maintaining a skilled workforce that is adaptable to changes in technology is fundamental to Boulder sustaining a healthy and diverse economy. The City of Boulder Economic Strategy stated that training focused in the STEAM fields was important3. Providing children with the opportunity to develop interest and skills in these fields in an integrated way encourages critical thinking and experimentation and is a first step in preparing them for the workforce. Providing workforce training and skill building not only support a healthy economy, these opportunities for education and employment development empower adults living under the poverty level or who are experiencing homelessness to become self-sufficient and better able to make effective decisions that promote their well-being4. Further, providing programs to immigrants to help them learn about the American culture and improve their English language skills fosters inclusion in the community. It also builds self-sufficiency and increases their potential to earn more competitive salaries and become greater contributors to a healthy and socially thriving community5. This includes supporting immigrant parents to actively participate in their child’s education. BPL plays a role in supporting the economic vitality of the community through several of its programs and services that encourage life-long learning, skill building, and workforce readiness, such as BLDG 61 Makerspace workshops, BoulderReads adult literacy program, and resume writing and job search programs. It also partners with organizations whose missions are to educate and support the local economy and align with the library’s mission such as: Boulder Small Business Development Center (SBDC) the Boulder County Farmers Market, and Seeds Library Café. For example, its partnership with the SBDC provides resources and consultant support directly to entrepreneurs and small business owners. In addition to these programs and partnerships, BPL may be able to cultivate new community collaborations to deliver workforce development by facilitating connections between community members and the other programs available in the community. It can also help to raise awareness and address the income gap. A few new potential collaborations may include: • The Boulder Chamber of Commerce Project Innovation Blueprint 3.0 seeks to expand mentoring and training programs for entrepreneurs, female and minority business leaders, facilitate cross-industry collaboration, and develop talent among our university student population. • Boulder Valley School District, Superintendent’s Strategic Plan Goal is to create a sustainable community6 partnership program that will establish mutually-beneficial relationships with government agencies, businesses, nonprofits and other community members. The intention is to create successful, curious, lifelong learners who confidently confront the challenges of their time.   (cont. pg 94) 3 City of Boulder. (2013) City of Boulder Economic Sustainability Strategy. www-static.bouldercolorado.gov/docs/Final_ESS_Adopted_by_Council_-_reduced_file_size-1-201312121401.pdf 4 Boulder County Housing and Human Services. (2014) Boulder County Housing and Human Services Strategic Priorities. assets.bouldercounty.org/wp-content/uploads/2017/02/strategic-priorities-2014.pdf 5 Intercambio Uniting Communities. intercambio.org/about-us/vision-mission 6 City of Boulder. (2013) City of Boulder Economic Sustainability Strategy. www-static.bouldercolorado.gov/docs/Final_ESS_Adopted_by_Council_-_reduced_file_size-1-201312121401.pdf 99 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 445 of 607 COMMUNITY PRIORITIES & NEEDS ASSESSMENT CONT. 7 Boulder County Department of Housing and Human Services. (2016). Building a Community of Hope 2016 Annual Report. issuu.com/bcdhhs/docs/dhhs_annual_report_final?e=0/33121378 • Family Self-Sufficiency of Boulder County is a 5-year program that offers eligible low-income families the opportunity to receive a wide array of coordinated services. It sets training and educational goals that lead to better-paying jobs and/or homeownership for self-sufficiency7. • Redevelopment of Ponderosa Mobile Home Park is a project focused on infrastructure improvements including affordable, energy-efficient home replacement and eventual annexation of the site into the city. A primary goal is to avoid displacement of the residents while transforming the community into a model for developing a resilient, affordable and carbon neutral community. BPL was identified in the Rebuild By Design report, Path to Resilient Mobile and Manufactured Homes: Ponderosa Resilience Workshop, as a potential partner for educational resources and to support aging in place for the residents. Supporting Community Development BPL provides programs and services that contribute to community development. It tailors access to programs and services to be convenient for all members of the community and supports opportunities for economically disadvantaged members of the community to become self-sufficient and civic contributors, results in creating a safer, inclusive, and thriving community. Engage older adults. The Age Well Boulder County 2015 Strategic Plan recommended several opportunities to help older adults in the community who want to age in place. Many of these opportunities align with the library’s mission. Providing programs and services that appeal to older adults is something the library already does, but there are growth opportunities. For instance, the strategy recommended designing programs that pair older adults with younger community members to increase social engagement. WHILE BOTH OUTREACH AND COMMUNITY DEVELOPMENT HAPPEN IN THE COMMUNITY, THE LATTER REQUIRES US TO GO OUT INTO THE COMMUNITY NOT AS EXPERTS OR AUTHORITIES, DELIVERING SERVICE OR INFORMATION, BUT AS LEARNERS AND PARTNERS, TRYING TO DEVELOP RELATIONSHIPS THAT WILL EVOLVE INTO COLLABORATIVE SERVICE PARTNERSHIPS. THIS MEANS MORE THAN SIMPLY BEING “USER-FOCUSED”, IT MEANS BEING “USER (OR NON-USER) DRIVEN” - I.E., THE USER IS SITTING WITH US, STEERING THE CAR. – THE WORKING TOGETHER PROJECT APPENDIX: B COMMUNITY PRIORITIES & NEEDS ASSESSMENT SUMMARY 100 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 446 of 607 The survey that was conducted to inform the strategy also showed community agencies could improve how they share information about programs and service offered. Forty-seven percent of survey respondents indicated that not knowing what services are available to older adults in the community was at least a minor problem in the City of Boulder8. Similar input was received from patrons who participated in the Library Master Plan survey. The library can improve upon sharing information about the programs and services offered and it can strengthen collaboration with other agencies to connect older adults with resources and other available social services. Support self-sufficiency. The City of Boulder Human Services Department has seen success with implementation of the strategic plan goal of creating integrated access to information and services. The program is helping individuals and families experiencing homelessness or who are otherwise economically disadvantaged, find employment and homes. BPL also serves many of the same community members and acts as a connector, referring these individuals to the available social services. The library also has a role in supporting community members with gaining literacy and life skills to become self-sufficient. Volunteerism. Respondents to the 2016 City of Boulder Community Survey rated the availability of volunteer opportunities as excellent or good, with more than 50 percent having volunteered during the year. Providing opportunities for older adults to participate in the community through volunteerism supports aging in place and prevents isolation. The 2015 Age Well Boulder County Strategic Plan stated that volunteering later in life is associated with better physical health and emotional well-being. The library relies on volunteers to provide several of its programs and services, such as collection maintenance, running the library bookshop, materials delivery to homebound patrons, adult literacy tutoring, oral history interviewers, and BLDG 61 instructors to name a few. BPL will continue to offer meaningful opportunities for volunteer work to the community, a mutually beneficial arrangement. Early childhood education. Boulder County’s Early Childhood Framework outlines three broad goals: Ready Community, Ready Families, and Ready Children. The goals support quality of life for families through policy development and program offerings focused on: children’s healthy growth and development, supporting parents and caregivers to become their child’s first and best teachers, school readiness and early learning outcomes9. Additionally, the Boulder Community Foundation initiated the Five Big Ideas early learning awareness campaign. It was created by and for Latinx parents to build parent leadership and advocacy for early learning. Likewise, the grassroots program Engaged Latinx Parents Advancing School Outcomes (ELPASO) emerged to address the educational achievement gap between Non-Hispanic white and Latinx children in Boulder County10. The library focuses programs on early childhood development and encourages parents to be active participants in their child’s education. This aligns with the Early Childhood Framework. However, opportunities exist for library outreach to Latinx families in the community that could further support the mission of the ELPASO program. Strengthen Culture & Diversity in the Community Several of the resources reviewed for the community needs assessment identified community priorities to strengthen culture, inclusivity, and diversity in the community. 8 Age Well Boulder County (2015) Age Well Boulder County Strategic Plan-A Plan to Create Vibrant Communities. allagewell.com/wp-content/uploads/2017/10/agewellplanmay16.pdf 9 Early Childhood Council of Boulder County (2014) Early Childhood Framework. www.eccbouldercounty.org/wp-content/uploads/2016/05/eccbc_frametri_feb2014_forweb.pdf 10 Community Foundation of Boulder County (2015) Boulder County TRENDS. The Community Foundation’s Report on Key Indicators. issuu.com/commfound/docs/trends-2015_9bc47a2c4a15c6. 101 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 447 of 607 COMMUNITY PRIORITIES & NEEDS ASSESSMENT CONT. 11 Arts Education Partnership (2014) Preparing Students for the Next America, Benefits of an Arts Education. www.ecs.org/wp-content/uploads/Preparing-Students-for-the-Next-America.pdf 12 City of Boulder (2014) Boulder Parks and Recreation Master Plan. www-static.bouldercolorado.gov/docs/MP_Layout_V7.8_Final_sm-1-201404020833.pdf 13 City of Boulder (2015) Community Cultural Plan. boulderarts.org/wp-content/uploads/2015/11/Community-Cultural-Plan-11-17-2015.pdf?x64198 14 City of Boulder (2013) Plan for Boulder’s Civic Area. www-static.bouldercolorado.gov/docs/boulder-civic-area-plan-1-201402191651.pdf Strengthen Culture & Diversity in the Community cont. Access to cultural experiences. Creating more opportunities for every community member to easily access cultural experiences close to home was identified as important to creating social connectedness. The Education Commission of the States Preparing Students for the Next America report outlines many positive impacts of arts education on student achievement11. Gathering space. Strengthening relationships, building resilience, intimacy and character of neighborhoods is accomplished by supporting culture and creating inviting places for people to gather and interact. Like sentiments shared by the community in the Parks and Recreation master planning process, library patrons also expressed the desire for more places and events to engage the community, such as block parties and local celebrations12. They also identified the need for productive spaces for community members experiencing homelessness, near-homelessness and mental illness to spend time during the day. All the BPL facilities serve as community gathering spaces. Several public meeting rooms, study rooms and the Canyon Theater serve as venues for patrons to create opportunities to interact with one another. Performance space. The Boulder Community’s Culture Plan recommended creating and enhancing venues for visual and performing arts to provide flexible and affordable options for studio, rehearsal, performance, and exhibition space for the community. The library currently provides meeting room facilities and the Main Library Canyon Theater for cultural uses. Improving the flexibility of the Canyon Theater venue to encourage equitable use and participation by community members of all age groups and income levels, and offering the space for nominal or no charge, are opportunities to address this community priority13. As the most prominent public facility anchoring the west bookend of Boulder’s Civic Area, BPL serves as a popular, welcoming destination for the community and visitors. Boulder’s Civic Area Plan outlines options to redevelop or add on to the north Main Library building to incorporate a small performing arts facility and meeting space 14. Further investigation is required to determine if significant renovation or reconfiguration of the building is feasible and what kind of performing arts space would best meet community needs. APPENDIX: B COMMUNITY PRIORITIES & NEEDS ASSESSMENT SUMMARY 102 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 448 of 607 Cultivate Civic Dialogue & Participation Input received from community members who participated in the master planning process indicates that the community desires more opportunity to engage in civic dialogue on topics and issues that are linked to Boulder’s values and challenges. Results from the City of Boulder 2016 Community Survey indicated that most respondents kept themselves informed about major issues in the City of Boulder and felt included in the community. Twenty- two-percent of respondents disagreed that Boulder’s City Council implements policies that reflect the values of the community. About 20 percent of respondents indicated that they take initiative to share their views with elected officials or city staff15. Finding new methods to engage more community members in civic decision-making is an opportunity for improvement. Further, most respondents to the Community Survey identified as Caucasian, which indicates an opportunity to increase engagement with Latinx community members and others. The community leaders who were interviewed during the master planning process suggested the library could play an important role in providing a platform for community members to engage in civic dialogue with one another, rather than having their views simply amplified in separate silos. They want more community members to listen to each other and empathize with others’ challenges. They believe cultivating civil, civic participation will serve to develop leadership skills in the “next” generation of Boulder community members. They also cited the importance of creating convenient opportunities for community members with less time or finances to be civically engaged if they choose to, so that everyone’s voice can be heard, not just those who have greater resources. Cultivating inclusivity and leadership. Respondents to the 2017 Community Foundation survey ranked Boulder County’s openness to seniors, immigrants, and racial and ethnic minorities at the bottom of the list, with an openness toward the LGBT community and young adults without children at the top16. Further, parents that are experiencing poverty are also underrepresented when policy decisions affecting them are being made. Respondents to the 2017 Community Foundation survey also indicated that Boulder’s elected leadership, and its advisory boards and commissions, are not reflective of the racial and ethnic diversity of the city. Community leaders interviewed during the master planning process suggested the library could play an important role through outreach to underserved members of the community to cultivate leadership and ensure their views are represented on community issues. This is achieved by going to the places where these community members work, live, and gather because they are often not able or comfortable with engaging in civic activities or seeking services outside their communities. According to its mission, the library is an organization that represents and promotes inclusivity. Input from the community indicated that the library can take a more active role in reaching out to underserved groups to facilitate and encourage participation, specifically helping Latinx parents with young children find their voices as community leaders. Education. Providing accessible information about the challenges that many Boulder community members face, such as providing elder care, homelessness, mental illness, poverty, and isolation will serve to cultivate more empathy and understanding and cultivate cultural competency. As a gathering place that welcomes all members of the community, the library can serve as a neutral platform for the community to explore these challenges and have meaningful, productive dialogue about possible solutions. 15 City of Boulder (2016) The National Citizen Survey. Community Livability Report. www-static.bouldercolorado.gov/docs/The_NCS_Community_Livability_Report-Boulder_CO_Final_2016-1-201612120838.pdf?_ga=2.33446331.441661760.1522690695-1720780512.1489675207 16 Community Foundation Boulder County. (2017) Boulder County TRENDS, The Community Foundation’s report of key indicators. www.commfound.org/trends 103 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 449 of 607 COMMUNITY PRIORITIES & NEEDS ASSESSMENT CONT. Cultivate Civic Dialogue & Participation Cont. The library can also support the city government to inform productive community dialogue about issues with data such as the City of Boulder Resilience Strategy goal to convene some of the world’s great artists and media professionals to work with scientists, librarians and city officials to develop and refine data visualization systems to create a compelling community education and communication approach for decision-making. The library can serve as a platform to publish this data and hold community dialogue to identify solutions for community issues. Culture and creative expression. The City of Boulder’s Community Cultural Plan emphasized the importance of culture in positively contributing to the economy, social offerings, the environment, and the authentic expression of diversity in Boulder. Developing Boulder’s creative identity so the city can continue to be an innovative world leader in cultural matters and projecting that creative identity to the region and the world, are priorities. As a platform for engagement, the library can support the Cultural Plan goals, which include: Boulder residents understanding their role in the culture of the community, feeling access to information about culture is readily at hand, and that they are invited into the conversation17. In addition to serving as a platform, the library also offers resources, tools, and programs that support community members’ expression of their culture, creativity and innovative ideas. Accessible neighborhoods. Boulder’s employers are concentrated in three main areas: East Boulder, Gunbarrel and Downtown. Twenty Ninth Street comprised by the Crossroads subcommunity, Boulder Junction, and the North Boulder subcommunity is another area in the city with a significant number of employers. Boulder’s employers and members of its workforce who reside in the community are drawn to areas that have a variety of recreational amenities, retail stores, restaurants, the arts, and that are walkable with convenient access to public transportation, bicycle, and pedestrian facilities18. During the past few years, the main employment centers in East Boulder and Gunbarrel have begun to grow the variety of uses, services, and amenities available. Continued development in these areas will support the community’s vision of a progressive urban design that: • Prioritizes and supports pedestrian travel as the primary mode of travel throughout the community, • Gives more community members the opportunity to live and work in compact, walkable neighborhoods and mixed-use districts, and • Increases the number of age-friendly neighborhoods with access to essential services and attractive amenities being seamless, barrier-free, affordable, and welcoming. 17 City of Boulder (2015) Community Cultural Plan. boulderarts.org/wp-content/uploads/2015/11/Community-Cultural-Plan-11-17-2015.pdf?x64198 18 City of Boulder. (2013) City of Boulder Economic Sustainability Strategy. www-static.bouldercolorado.gov/docs/Final_ESS_Adopted_by_Council_-_reduced_file_size-1-201312121401.pdf APPENDIX: B COMMUNITY PRIORITIES & NEEDS ASSESSMENT SUMMARY 104 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 450 of 607 BPL must consider the geographic distribution of its services in its long-range planning. Thirty percent of respondents to the BPL Master Plan community survey indicated they use a branch library most frequently. Several of the focus group participants without a library in their neighborhood, said they choose the library facility that is most convenient to where they work or are running errands. In some cases, this means they use libraries in neighboring cities. Directing services and focusing expansion of library services into areas that are expected to grow will support Boulder’s value of walkable neighborhoods. Having libraries near shopping areas has a positive economic impact and supports the goal of reducing car trips, therefore also reducing the city’s carbon footprint. 105 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 451 of 607 FUNDING LEVEL COMPARISON IN ORDER BY EXPENDITURES PER REGISTERED BORROWERS, HIGH TO LOW OPERATING REVENUE OPERATING EXPENDITURES EXPENDITURES PER CAPITA EXPENDITURES PER REGISTERED BORROWERS DIFFERENCE BETWEEN EXPENDITURES PER CAPITA AND PER REGISTERED BORROWER 2 LIBRARY SYSTEM GOVERNANCE 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 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. Boulder Public Library (BPL) would need an operating budget of $11.4M to reach the average expenditure per registered 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 APPENDIX: C 106 107 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 452 of 607 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 APPENDIX: D LIBRARY ACCOUNTS & VISITS COMPARISON IN ORDER OF LIBRARY ACCOUNTS AS A % OF POPULATION 108 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 453 of 607 LEGAL SERVICE AREA POPULATION LIBRARY ACCOUNTS AS A % OF POPULATION LIBRARY IN- PERSON VISITS PER CAPITA 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 Data generated from Library Research Service 2015 Colorado Public Library Statistics www.lrs.org/public/data/csv/id/4008631 109 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 454 of 607 Data generated from BPL Patron Database 11/8/2017 and adjusted by G.I.S mapping from the the City of Boulder *Areas served by other Flatirons Library Consortium libraries. = 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.) APPENDIX: E BPL CARDHOLDERS BY AREA OF RESIDENCE 110 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 455 of 607 AREA CARDHOLDERS % OF TOTAL Boulder 77,694 58.53% Boulder County (no city) =18,880 14.22% 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 132,731 100.00% 111 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 456 of 607 APPENDIX: F BOULDER COUNTY WITH BOUNDARIES, PATRON POINTS & HEAT MAP 112 113 Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 457 of 607 Wyoming Utah Oklahoma NewMexico Nebraska Kansas 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 114 APPENDIX: G MAP OF COLORADO LIBRARY JURISDICTIONS Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 458 of 607 115 MAP OF POSSIBLE AREAS TO INCLUDE IN A LIBRARY DISTRICT BVCP City Limits Lee Hill Area Niwot Area Sunshine Canyon Area Overall Areas APPENDIX: H Attachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 459 of 607 BOULDERLIBRARY.ORGAttachment A: 2018 Boulder Public Library Master Plan Item 5A – Library Master Plan Acceptance and Amendment of BVCP City Council Meeting Page 460 of 607 CITY OF BOULDER PLANNING BOARD ACTION MINUTES August 16, 2018 1777 Broadway, Council Chambers A permanent set of these minutes and a tape recording (maintained for a period of seven years) are retained in Central Records (telephone: 303-441-3043). Minutes and streaming audio are also available on the web at: http://www.bouldercolorado.gov/ PLANNING BOARD MEMBERS PRESENT: Liz Payton, Chair Bryan Bowen, Vice Chair David Ensign John Gerstle Crystal Gray Peter Vitale Harmon Zuckerman PLANNING BOARD MEMBERS ABSENT: N/A STAFF PRESENT: Charles Ferro, Development Review Manager Hella Pannewig, Assistant City Attorney Cindy Spence, Administrative Specialist III Phil Kleisler, Planner II Jennifer Phares, Deputy Library Director Shannon Moeller, Planner II Karl Guiler, Senior Planner David Farnan, Library/Arts Director Elaine McLaughlin, Senior Planner Jeff Haley, Planning, Design and Community Engagement Manager Doug Godfrey, Parks & Recreation Planner 1. CALL TO ORDER Chair, L. Payton, declared a quorum at 6:03 p.m. and the following business was conducted. 2. APPROVAL OF MINUTES None to Approve. 3. PUBLIC PARTICIPATION No one spoke. Item 5A – Library Master Plan Acceptance and Amendment of BVCP Attachment B: August 16, 2018 Planning Board Minutes City Council Meeting Page 461 of 607 4. DISCUSSION OF DISPOSITIONS, PLANNING BOARD CALL-UPS / CONTINUATIONS A. CALL UP ITEM: Staff-level Site Review for redevelopment of the site located at 5505 Central Avenue with an approximately 53,630 square foot, two and a half story office building within the Flatiron Industrial Business Park and Industrial General (IG) Zoning District. The proposal also includes improving internal connectivity between the commonly owned properties of 5505 Central Ave., 2108 55th St., 5525 and 5541 Central Ave. along with the addition of bicycle parking, adjustments to parking layout, and improvements to walkways, drainage, water quality, lighting and landscaping. No modifications to the development standards are proposed. This item was not called up. 5. PUBLIC HEARING ITEMS A. AGENDA TITLE: Public Hearing and Recommendation to City Council for Acceptance of the Boulder Public Library Master Plan and Action on the Proposed Amendment to the Boulder Valley Comprehensive Plan (BVCP) Library Master Plan summary. Staff Presentation: P. Kleisler and D. Farnan presented the item to the board. Board Questions: P. Kleisler, D. Farnan and Joni Teter, chair of the Library Commission, answered questions from the board. Public Hearing: No one spoke. Motion: On a motion by H. Zuckerman seconded by D. Ensign the Planning Board voted 7-0 to approve the Boulder Valley Comprehensive Plan, Boulder Pub lic Library Master Plan summary. • C. Gray said that she would be in support of stable, dedicated funding for the Master Plan and she would prefer the old Safeway site to be selected. She supports the Master Plan summary. Board Comments: • B. Bowen disclosed that his sister is currently employed by the library but it would not affect his ability to be impartial regarding the Master Plan. • H. Zuckerman stated that the Master Plan document was excellent and that he would support the plan. • D. Ensign said the Master P lan was in line with the BVCP standards. Regarding funding, it would be appropriate to ask and understand it. He would like to see all options in the Master P lan so there is flexibility. He said he is looking forward to the CIP priorities to support the interests of the library going forward. He would support the plan. • J. Gerstle said he considers a discussion regarding the financing issues an essential part of the Master Plan. He would support and recommend the plan. • B. Bowen approved of the BLDG 61 expansion. Item 5A – Library Master Plan Acceptance and Amendment of BVCP Attachment B: August 16, 2018 Planning Board Minutes City Council Meeting Page 462 of 607 • C. Gray appreciated the Library Commission looking at various funding options and what is important to the community. • P. Vitale approved of the Master Plan. He stated that some of the attached Appendixes needed some clarification. • L. Payton agreed with previous comments. She mentioned some concerns with the document itself, that it reads like an annual report rather than a projection of what is planned. She suggested it could benefit from having more projections regarding usage in the future, which could help increase the arguments for dedicated or long-term stable funding. The document does not show expected shortfalls under current funding which w ould be helpful. Also, the inserted tables and headings are difficult to read. • D. Ensign informed the board that he would like to send staff an email with s ome suggested edits to the Master Plan. Motion: On a motion by J. Gerstle seconded by C. Gray the Planning Board voted 7-0 to recommend to City Council for acceptance of the Boulder Public Library Master Plan. B. AGENDA TITLE: Public hearing and consideration of a site review amendment to construct a new 7,830 square-foot Boulder Reservoir Visitor Services Center to replace the existing 7,424 square-foot building, including locker rooms, concessions, and staff offices in the P (Public) zoning district. Due to prior grade modifications, the proposal includes a height modification request (LUR2018-00013). Amends Height Review #H -83-15. Board members were asked to reveal any ex-parte contacts they may have had on this item . • All board members visited the site during the CIP tour in July 2018 except for C. Gray and B. Bowen. In addition, C. Gray stated that she served on the Parks board and worked on the sales tax that funded the existing facilities which will be removed. Staff Presentation: C. Ferro introduced the item. S. Moeller presented the item to the board. Board Questions: S. Moeller answered questions from the board. Applicant Presentation: J. Haley, with the Parks and Recreation Department with the City of Boulder, presented the item to the board. Board Questions: J. Haley, representing the applicant, and Chad Herd, Director of Urban Design and Planning with the Farnsworth Group, answered questions from the board. Public Hearing: No one spoke. Item 5A – Library Master Plan Acceptance and Amendment of BVCP Attachment B: August 16, 2018 Planning Board Minutes City Council Meeting Page 463 of 607 Board Comments: Key Issue #1: Consistency with the Boulder Valley Comprehensive Plan (BVCP)? • All board members agreed the proposal is consistent with the BVCP. Key Issue #2: Modifications and Site Review Criteria? • H. Zuckerman said he would not object to the proposed height modification due to the twenty feet of proposed fill, lower ing the building six feet and proposed low roof lines. • D. Ensign agreed and said the proposed design is graceful and not imposing. • C. Gray approved that the mechanical system cannot be seen on the roof. • B. Bowen agreed that the proposed height is appropriate. The streetscape is acceptable. He had some concerns regarding the landscaping proposed in the parking lot. He suggested providing EV charging stalls for the entire parking area and provide building and site lighting based on projected demand. • P. Vitale also suggested solar carports for the parking lot. • H. Zuckerman agreed regarding B. Bowen’s comments concerning the EV parking stations, but questioned if the proposed would be more than what is required for the actual use. • B. Bowen stated that the number would be based on the parking count. • J. Gerstle agreed with B. Bowen’s proposal. • H. Zuckerman agreed keeping the parking lot clear would be beneficial. In addition, he questioned if having treeless roadways approaching the reservoir would be keeping with urban character. He said the approach to the reservoir would be benefited with an alley of trees. He recommended requiring streetscape standards to be met. • P. Vitale agreed. • C. Gray said a public amenity should be shade for the public and suggested more shade facilities if they are movable. She questioned if an alley of trees on the approach would be natural with the prairie landscape. • D. Ensign agreed with C. Gray but hesitated due to it being a large area to cover. Therefore, he is partial to leaving the area the way it currently is. • L. Payton said the proposal would meet what the height ordinance intended and the proposed height would be reasonable. The project is human scale and promotes a safe experience. The design is appropriate. Public amenities are met. The project meets the Site Review criteria. • H. Zuckerman generally agrees but believes that a few extra conditions could be applied requiring a study of the utilization of the bicycle parking and if the built parking is found to be deficient, then the nu mber of racks could be increased. Also, due to the location of the reservoir being quite a distance from town, the number to EV bike stations should be increased so people are not stranded. Finally, have the number of EV stalls equivalent to the number of parking spaces. But he would need to know that number before he would vote for that. • P. Vitale confirmed with staff that 28 charging stations (10% of the number of proposed parking spaces) would comply. • B. Bowen explained the motivation behind the charging stations motion as the number of parking spaces on a paved lot as opposed to the parking that was associated with the building footprint. It is based on the parking count, not the building. • C. Gray said the city should demonstrate how to implement the Code, how one can go beyond it, etc. She suggested talking with the CIP staff about funding ideas. Item 5A – Library Master Plan Acceptance and Amendment of BVCP Attachment B: August 16, 2018 Planning Board Minutes City Council Meeting Page 464 of 607 • D. Ensign expressed concern that because this is a city project the added condition was demonstrative and holding the city to a higher standard could be unfair. • B. Bowen explained that was not the case. The Site Review criteria and renewable energy conditions could not be satisfied by the building alone and that the EV charging stations in the parking lot would help. The goal is not to treat the city differently but to treat them equally. Motion: On a motion by B. Bowen seconded by C. Gray the Planning Board voted 7-0 to approve Site Review case no. LUR2018-00013 incorporating the staff memorandum and the attached Site Review Criteria Checklist as findings of fact, and subject to the recommended conditions of approval with the following condition: • To minimize and mitigate energy use and to offset the parking lot heat island effect, the final site plan shall include electric vehicle charging stations based on the parking count of 288 stalls meeting the requirements of Title 10, B.R.C. 1981, and a photovoltaic system sized t o meet the projected energy demands of the building, electric vehicle charging stations, and site lighting. H. Zuckerman made a friendly amendment that the applicant be required to provide adequate EV charging stations for bicycles and monitor the utilization of bike parking and increase the number of bicycle racks to meet demand if bike parking is found to be insufficient. The amendment was accepted by B. Bowen and C. Gray.