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08.11.22 City Council Special Meeting Agenda M ayor Aaron Brockett Council M e mbe rs Matt Benjamin Lauren Folkerts Rachel Friend Junie Joseph Nicole Speer Mark Wallach Tara Winer Bob Yates Council Chambers 1777 Broadway Boulder, CO 80302 August 11, 2022 6:00 PM City M anage r Nuria Rivera-Vandermyde City Attorne y Teresa Taylor Tate City Cle rk Elesha Johnson AGENDA FOR T HE SPECIAL MEET ING OF T HE BOULDER CIT Y COUNCIL 1.C all to Order and Roll C all A.C O V ID-19 and Hybrid Council M eetings Discussion 15 min 2.Public Hearings A.Second reading and public hearing on the following ballot items: 1. S econd reading and consideration of a motion to adopt Ordinance 8534 submitting to the registered electors of the C ity of Boulder at the Special M unicipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to repeal Ordinance 8483 regarding the annexation of C U South; specifying the form of the ballot and other election procedures; and setting forth related details 2. S econd reading and consideration of a motion to adopt Ordinance 8539 submitting to the registered electors of the C ity of Boulder at the Special M unicipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend S ections 65, 102 and 130 and repeal Sections 69, 132, 133, and 134 from the B oulder Home Rule Charter if the initiative to create a library district on the B oulder C ounty Ballot is approved at this election; specifying the form of the ballot and other election procedures; and setting forth related details 3. S econd reading and consideration of a motion to adopt Ordinance 8540 submitting to the registered electors of the C ity of Boulder at the Special M unicipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend S ections 5 and 9 of the Boulder Home Rule Charter to prohibit running for more than one office at an election, allow a council member whose term does not expire at the election to run for mayor in the election, fill a vacancy for the expired term, and change the swearing-in date of newly elected officials; specifying the form of the ballot and other election procedures; and setting forth related details 30 min presentation/210 min discussion Packet Page 1 of 46 4. S econd reading and consideration of a motion to adopt Ordinance 8546 submitting to the registered electors of the C ity of Boulder at the Special M unicipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend S ections 5, 14 and 22 of the B oulder Home Rule Charter to change the regular municipal elections of candidates to even-numbered years beginning in 2026; implement the transition by reducing the terms of the council members elected in 2023 and 2025 to three years and increasing the term of the mayor elected in 2023 to three years; specifying the form of the ballot and other election procedures; and setting forth related details 5. S econd reading and consideration of a motion to adopt Ordinance 8542 submitting to the registered electors of the C ity of Boulder at the Special M unicipal Coordinated Election to be held on Tuesday, November 8, 2022, the questions of authorizing the City C ouncil to replace the existing utility occupation tax and climate action plan excise tax with a new climate tax beginning January 1, 2023, and expiring D ecember 31, 2040, and authorizing debt to be repaid from such tax up to a principal amount of $52,900,000 to meet the city’s climate goals; specifying the form of the ballot and other election procedures; and setting forth related details 3.D iscussion Items 4.D ebrief 5.Adjournment 4:00 hrs City Council documents, including meeting agendas, study session agendas, meeting ac tion summaries and information packets can be accessed at www.bouldercolorado.gov/city-council. This meeting can be viewed at www.bouldercolorado.gov/city-council. Meetings are aired live on Munic ipal Channel 8 and the c ity 's website and are re-cablecast at 6 p.m. Wednesdays and 11 a.m. Fridays in the two weeks following a regular counc il meeting. Boulder 8 TV (C omc ast channels 8 and 880) is now providing c losed 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 c hannels, allowing viewers to turn the closed captioning on or off with the television remote control. Closed c aptioning also is available on the live HD stream on Boulder Channel8.com. To activate the c aptioning servic e for the live stream, the "C C" button (whic h is located at the bottom of the video play er) will be illuminated and available whenever the channel is providing c aptioning servic es. The c ouncil c hambers is equipped with a T-Coil assisted listening loop and portable assisted listening devic es. I ndividuals with hearing or speech loss may contact us using Relay C olorado at 711 or 1-800-659-3656. Anyone requiring special packet preparation such as Braille, large print, or tape recorded versions may c ontact the City C lerk's Office at 303-441-4222, 8 a.m. - 5 p.m. Monday through Friday. Please request spec ial packet preparation no later than 48 hours prior to the meeting. I f y ou 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 nec esita interpretac ion o Packet Page 2 of 46 cualquier otra ayuda con relac ion 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: CityClerkS taff@bouldercolorado.gov no later than 2 p.m. the day of the meeting. Packet Page 3 of 46 C OVE R SH E E T ME E T I N G D AT E August 11, 2022 AG E N D A I T E M C O VID-19 and Hybrid Council Meetings Discussion P RI MARY STAF F C ON TAC T Pam Davis, Assistant C ity Manager AT TAC H ME N T S: Description No Attachments Available Packet Page 4 of 46 C OVE R SH E E T ME E T I N G D AT E August 11, 2022 AG E N D A I T E M Second reading and public hearing on the following ballot items: 1. Second reading and consideration of a motion to adopt Ordinance 8534 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to repeal Ordinance 8483 regarding the annexation of C U South; specifying the form of the ballot and other election procedures; and setting forth related details 2. Second reading and consideration of a motion to adopt Ordinance 8539 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 65, 102 and 130 and repeal Sections 69, 132, 133, and 134 from the Boulder Home Rule Charter if the initiative to create a library district on the Boulder C ounty Ballot is approved at this election; specifying the form of the ballot and other election procedures; and setting forth related details 3. Second reading and consideration of a motion to adopt Ordinance 8540 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 5 and 9 of the Boulder Home Rule C harter to prohibit running for more than one office at an election, allow a council member whose term does not expire at the election to run for mayor in the election, fill a vacancy for the expired term, and change the swearing-in date of newly elected officials; specifying the form of the ballot and other election procedures; and setting forth related details 4. Second reading and consideration of a motion to adopt Ordinance 8546 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 5, 14 and 22 of the Boulder Home Rule C harter to change the regular municipal elections of candidates to even-numbered years beginning in 2026; implement the transition by reducing the terms of the council members elected in 2023 and 2025 to three years and increasing the term of the mayor elected in 2023 to three years; specifying the form of the ballot and other election procedures; and setting forth related details Packet Page 5 of 46 5. Second reading and consideration of a motion to adopt Ordinance 8542 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the questions of authorizing the City C ouncil to replace the existing utility occupation tax and climate action plan excise tax with a new climate tax beginning J anuary 1, 2023, and expiring December 31, 2040, and authorizing debt to be repaid from such tax up to a principal amount of $52,900,000 to meet the city’s climate goals; specifying the form of the ballot and other election procedures; and setting forth related details P RI MARY STAF F C ON TAC T Kathy Haddock, Senior Counsel, 303.441.3020 RE Q U E ST E D AC T I ON O R MOT I ON L AN GU AG E 1. Motion to adopt Ordinance 8534 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to repeal Ordinance 8483 regarding the annexation of C U South; specifying the form of the ballot and other election procedures; and setting forth related details 2. Motion to adopt Ordinance 8539 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 65, 102 and 130 and repeal Sections 69, 132, 133, and 134 from the Boulder Home Rule Charter if the initiative to create a library district on the Boulder C ounty Ballot is approved at this election; specifying the form of the ballot and other election procedures; and setting forth related details 3. Motion to adopt Ordinance 8540 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 5 and 9 of the Boulder Home Rule Charter to prohibit running for more than one office at an election, allow a council member whose term does not expire at the election to run for mayor in the election, fill a vacancy for the expired term, and change the swearing-in date of newly elected officials; specifying the form of the ballot and other election procedures; and setting forth related details 4. Motion to adopt Ordinance 8546 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 5, 14 and 22 of the Boulder Home Rule C harter to change the regular municipal elections of candidates to even-numbered years beginning in 2026; implement the transition by reducing the terms of the council members elected in 2023 and 2025 to three years and increasing the term of the mayor elected in 2023 to three years; specifying the form of the ballot and other election procedures; and setting forth related details 5. Motion to adopt Ordinance 8542 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the questions of authorizing the C ity Council to replace the existing utility occupation Packet Page 6 of 46 tax and climate action plan excise tax with a new climate tax beginning J anuary 1, 2023, and expiring December 31, 2040, and authorizing debt to be repaid from such tax up to a principal amount of $52,900,000 to meet the city’s climate goals; specifying the form of the ballot and other election procedures; and setting forth related details AT TAC H ME N T S: Description I tem 2A - P ublic Hearing on Ballot I tems Packet Page 7 of 46 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: August 11, 2022 AGENDA TITLE Second reading and consideration of a motion to adopt Ordinance 8534 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to repeal Ordinance 8483 regarding the annexation of CU South; specifying the form of the ballot and other election procedures; and setting forth related details PRESENTERS Nuria Rivera-Vandermyde, City Manager Teresa Tate, City Attorney Kathy Haddock, Senior Counsel Elesha Johnson, City Clerk EXECUTIVE SUMMARY The city received a referendum petition that was deemed sufficient on November 1, 2021. The petition asked whether Ordinance 8483 regarding the annexation of CU South should be repealed. Ordinance 8483 annexing and zoning the CU South property was adopted by emergency on September 21, 2021, and the annexation was recorded in the records of Boulder County on September 22, 2021, as required by the Municipal Annexation Act and Sec. 50 of the Boulder Home Rule Charter. Because the Charter provides that the ordinance will be in effect rather than suspended pending the referendum election, both the city and the property owner have been implementing the annexation agreement since approval on September 21, 2021. Item 2A - Public Hearing on Ballot Items Page 1 Packet Page 8 of 46 Pursuant to Article V of the Colorado Constitution and the City Charter, the referendum is to be on the ballot at the next municipal election. Proposed Ordinance 8534 (Attachment A) submits to the voters at the November 8, 2022, election the question contained in the referendum petition and as provided to council at the May 10, 2022, study session. Council approval of Proposed Ordinance 8534 is not a vote for or against the ballot item; the vote is only to place the referendum question on the ballot as required by law. 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 8534 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to repeal Ordinance 8483 regarding the annexation of CU South; specifying the form of the ballot and other election procedures; and setting forth related details NEXT STEPS Adoption of Proposed Ordinance 8534 on August 11, 2022, or such later date prior to September 1, 2022, as determined by council. ATTACHMENT A – Proposed Ordinance 8534 Item 2A - Public Hearing on Ballot Items Page 2 Packet Page 9 of 46 K:\CCCO\o-8534 2nd Rdg-3406.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 8534 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE SPECIAL MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, THE QUESTION OF WHETHER TO REPEAL ORDINANCE 8483 REGARDING THE ANNEXATION OF CU SOUTH; 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. On October 21, 2021, a petition committee presented a referendum petition with sufficient signatures of registered electors for a vote on the repeal of Ordinance 8483, annexation of CU South. The referendum petition was deemed sufficient by the city clerk on November 1, 2021. Section 2. A special municipal coordinated election is called to be held on Tuesday, November 8, 2022. Section 3. The charter requires that the ballot title be a clear, concise statement, without argument or prejudice, descriptive of the substance of the measure and phrased so the voters determine if they are “for the measure” or “against the measure.” 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 8534 Item 2A - Public Hearing on Ballot Items Page 3 Packet Page 10 of 46 K:\CCCO\o-8534 2nd Rdg-3406.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. ____ Repeal of Ordinance 8483, regarding the annexation of CU South Should Ordinance 8483 regarding the annexation of CU South, be repealed? For the Measure ____ Against the Measure ____ 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 21st day of July 2022. ____________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk Attachment A - Proposed Ordinance 8534 Item 2A - Public Hearing on Ballot Items Page 4 Packet Page 11 of 46 K:\CCCO\o-8534 2nd Rdg-3406.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 AND ADOPTED, this 11th day of August 2022. ___________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk Attachment A - Proposed Ordinance 8534 Item 2A - Public Hearing on Ballot Items Page 5 Packet Page 12 of 46 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: August 11, 2022 AGENDA TITLE Second reading and consideration of a motion to adopt Ordinance 8539 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 65, 102 and 130 and repeal Sections 69, 132, 133, and 134 from the Boulder Home Rule Charter if the initiative to create a library district on the Boulder County Ballot is approved at this election; specifying the form of the ballot and other election procedures; and setting forth related details PRESENTERS Nuria Rivera-Vandermyde, City Manager Chris Meschuk, Deputy City Manager Teresa Tate, City Attorney Kathy Haddock, Senior Counsel Kara Skinner, Chief Financial Officer Elesha Johnson, City Clerk EXECUTIVE SUMMARY At its study session regarding ballot issues on May 10, 2022, council directed that staff bring an ordinance to council that deletes the Charter references to the library to go into effect only if the voters approve a library district. The question of whether a library district should be formed is through an initiative to Boulder County. The initiative petition has been submitted and the county is holding a hearing on it this summer. Proposed Ordinance 8539 (Attachment A) repeals Sections 69, 132, 133 and 134 from the Charter. Sections 69, 102 and 130 are only amended to the extent they address the Item 2A - Public Hearing on Ballot Items Page 6 Packet Page 13 of 46 library, dedicated library funds, and the library commission. The amendments to Section 102 are necessary to prevent appropriated funds from being “stuck” in the Library Fund with no authority to spend the funds. If the library district is approved by the voters, city staff will work with the new library district to transition the city library assets to the new district over the next few years. The result of those discussions will be brought to council for its consideration for approval in the form of an IGA. Eliminating the library provisions from the Charter does not prevent the council from appropriating funds for the library during the interim transition period or keeping the Library Commission in place during the transition; it simply removes from the Charter the limitations on council of how to do so. Part of the transition plan will also include changes to the code provisions regarding the library. The ballot language is written so that the Charter changes will not go into effect unless the voters approve funding for the library district. Approval of Proposed Ordinance 8539 is not approval of a library district; it allows for amendment of the Charter regarding the existing city libraries that will go into effect only if the voters approve a library district. The background in the first reading memo is available here. STAFF RECOMMENDATION NEXT STEPS Adoption of Proposed Ordinance 8539 on August 11, 2022, or such later date prior to September 1, 2022, as determined by council. ATTACHMENT A – Proposed Ordinance 8539 Suggested Motion Language: Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt Ordinance 8539 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 65, 102 and 130 and repeal Sections 69, 132, 133, and 134 from the Boulder Home Rule Charter if the initiative to create a library district on the Boulder County Ballot is approved at this election; specifying the form of the ballot and other election procedures; and setting forth related details Item 2A - Public Hearing on Ballot Items Page 7 Packet Page 14 of 46 K:\CCCO\o-8539 2nd Rdg-3406.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 8539 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE SPECIAL MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, THE QUESTION OF WHETHER TO AMEND SECTIONS 65, 102 AND 130 AND REPEAL SECTIONS 69, 132, 133, AND 134 FROM THE BOULDER HOME RULE CHARTER IF THE INITIATIVE TO CREATE A LIBRARY DISTRICT ON THE BOULDER COUNTY BALLOT IS APPROVED AT THIS ELECTION; 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 special municipal coordinated election is called to be held on Tuesday, November 8, 2022. Section 2. At the election, an initiative will be set forth for voters to consider forming a boulder public library district, and if funding for the district should be approved, the city will enter into negotiations to define the process of transferring the city’s library services to the district. This is anticipated to include any unspent funds in the library fund on the date of transfer. Section 3. At the election, a question shall be submitted to the electors of the City of Boulder entitled by law to vote, that will allow voters to determine whether Sections 65, 102, and 130 should be amended and Sections 69, 132, 133, and 134 should be repealed from the Boulder Home Rule Charter if the voters approve the initiative that is on the Boulder County ballot to create a library district. The material proposed to be removed is shown stricken through with solid lines. Attachment A - Proposed Ordinance 8539 Item 2A - Public Hearing on Ballot Items Page 8 Packet Page 15 of 46 K:\CCCO\o-8539 2nd Rdg-3406.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. 65. – Administrative departments. The following administrative departments are hereby created: . . . (f) Department of library and arts. Sec. 69. – General powers and duties. REPEAL There is hereby created a department of library and arts, the director of which will be subject to the supervision and control of the city manager in all matters, shall be the technical advisor of the library commission and shall have the administrative direction of the department of library and arts, and perform such duties pertaining to the department of library and arts as are in this charter, or may be required by ordinance or assigned by the city manager. The director may be designated as the secretary of the library commission and authorized to perform other necessary functions. Sec. 102. – Transfer of balances. At any time after the passage of the annual appropriation ordinance and after at least one week’s public notice, the council may transfer unused balances, appropriated for one purpose to another purpose and may by ordinance appropriate available revenues not included in the annual budget. This provision shall not apply to the water, and park, and library funds. Sec. 130. – General provisions concerning advisory commissions. At any time after the organization of the council elected under the provision 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. Except as otherwise specified in this charter, each of the existing advisory 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 i n the ordinance forming the advisory commission whether the commission shall have five 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 hav e seven members. All members of a commission shall be appointed by the council, not all of one gender identity, who are well known for their ability, probity, public spirit, and particular fitness to serve on such respective commissions and who are at leas t eighteen 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 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 Attachment A - Proposed Ordinance 8539 Item 2A - Public Hearing on Ballot Items Page 9 Packet Page 16 of 46 K:\CCCO\o-8539 2nd Rdg-3406.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 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 shall serve until their successors are appointed. . . . Library Commission Sec. 132. – Library commission established. REPEAL There shall be and is hereby established a library commission which shall have the primary responsibility as an advisory commission with regard to the provision of library services to the Boulder community. The members of the commission shall be qualified to serve on an advisory commission pursuant to Section 130 shall not hold any other office in the city, and shal l serve without pay. Sec. 133. – Powers and duties of library commission. REPEAL The library commission shall not perform any administrative functions unless expressly provided in this charter. The commission shall provide recommendations to the city council in matters concerning the library, and the commission shall have the following duties: (a) Adopt bylaws, rules, and regulations for its guidance and governance; (b) Provide advice to assist in preparation and revision of a master plan for the development and maintenance of a modern library system within the city; (c) Review annually the library budget prepared by the library director prior to its submittal to the city manager and make recommendations regarding approval or modification of the same; (d) Review periodically the director ’s operational service plans and make comments and recommendations; (e) Make recommendations to the director and the city council on library facilities, including capital improvements, maintenance of existing facilit ies, and need for new facilities; (f) Review the library director ’s annual report and make comments and recommendations; (g) Represent the library to the community and the community to the library with the goal of building awareness, understanding, and sup port; and (h) Take steps as the library commission may deem feasible to encourage grants or gifts in support of the library. Attachment A - Proposed Ordinance 8539 Item 2A - Public Hearing on Ballot Items Page 10 Packet Page 17 of 46 K:\CCCO\o-8539 2nd Rdg-3406.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. 134. - Library fund. REPEAL The city council shall make an annual appropriation, which shall amount to not less than the return of one-third of a mill tax levied upon each dollar of assessed valuation of all taxable property in the City of Boulder. All revenue from such tax shall be paid into the city treasury and be designated the "Library Fund." Said fund shall be used onl y for the benefit of the library. Revenues from the following sources shall be deposited in the Library Fund referenced above. Expenditures of revenues from the following sources shall be made only upon the favorable recommendation of the library commissio n. (a) Gifts, bequests, and donations to the fund. (b) Proceeds of the sale of any library property, or the pro rata portion of such property, purchased with funds from the property tax appropriated pursuant to this section 134 or the predecessor section 135 or gifts, bequests, and donations. Any portion of the fund remaining unexpended at the end of any fiscal year shall not in any event be converted into the general fund nor be subject to appropriation for general purposes. Money appropriated from the fund which is not expended in whole or in part shall be returned to the fund and shall not be subject to appropriation for general purposes. 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. ____ Repeal of Library Commission and Tax if Library District Created If the voters approve the initiative to create a library district that is on the ballot of Boulder County at the November 8, 2022 election, shall Sections 65, 102 and 130 of the Boulder Home Rule Charter be amended and Sections 69, 132, 133, and 134 be repealed from the Boulder Home Rule Charter and any remaining funds in the Library Fund used all as set forth in Ordinance 8539? For the Measure ____ Against the Measure ____ 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. Attachment A - Proposed Ordinance 8539 Item 2A - Public Hearing on Ballot Items Page 11 Packet Page 18 of 46 K:\CCCO\o-8539 2nd Rdg-3406.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 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 21st day of July 2022. ____________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk READ ON SECOND READING, PASSED AND ADOPTED, this 11th day of August 2022. ___________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk Attachment A - Proposed Ordinance 8539 Item 2A - Public Hearing on Ballot Items Page 12 Packet Page 19 of 46 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: August 11, 2022 AGENDA TITLE Second reading and consideration of a motion to adopt Ordinance 8540 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 5 and 9 of the Boulder Home Rule Charter to prohibit running for more than one office at an election, allow a council member whose term does not expire at the election to run for mayor in the election, fill a vacancy for the expired term, and change the swearing-in date of newly elected officials; specifying the form of the ballot and other election procedures; and setting forth related details PRESENTERS Nuria Rivera-Vandermyde, City Manager Teresa Tate, City Attorney Kathy Haddock, Senior Counsel Elesha Johnson, City Clerk EXECUTIVE SUMMARY At the special meeting on June 14, 2022, council requested that a clarifying ballot measure be placed on the ballot to make it clear that a person can be a candidate for only one office at an election but that a council member whose term does not end at the election may run for mayor without resigning their seat unless they win the election for mayor. At the meeting on June 21, 2022, council requested that all of the charter changes necessary to clarify issues be included in one ballot question. Previously the changes had been in two separate ordinances and the language about swearing-in newly elected Item 2A - Public Hearing on Ballot Items Page 13 Packet Page 20 of 46 officials also appeared in the ballot language about even year election. As directed, all of these Charter clarification issues about candidates are in one ballot question. Proposed Ordinance 8540 (Attachment A) amends Sections 5 and 9 of the Charter to: A. Allow a person to be a candidate for only one office at an election; B. Allow a council member whose term does not expire at the election to run for mayor without resigning their seat unless elected mayor; C. Fill the vacancy of any council seat for the expired term (the 2020 amendments provided that vacancies would be filled for two years which could have realigned the rotation of council seats); and D. Change the swearing-in date of newly elected officials from the third Tuesday in November to the day of the first business meeting in December. Section 5 already provided that if a council member wins the mayoral seat, the candidate with the fifth highest number of votes for council would fill the remainder of the term of the council member who was elected mayor. It is underlined in the ballot language because it is relocated within Section 5 to be with the other provisions about council members. The language struck from Section 9 about the mayoral term being two years appears in Section 14 about the mayor and does not also need to be repeated in Section 9 about council members. 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 8540 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 5 and 9 of the Boulder Home Rule Charter to prohibit running for more than one office at an election, allow a council member whose term does not expire at the election to run for mayor in the election, fill a vacancy for the expired term, and change the swearing-in date of newly elected officials; specifying the form of the ballot and other election procedures; and setting forth related details NEXT STEPS Adoption of Proposed Ordinance 8540 on August 11, 2022, or such later date prior to September 1, 2022, as determined by council. Item 2A - Public Hearing on Ballot Items Page 14 Packet Page 21 of 46 ATTACHMENT A – Proposed Ordinance 8540 Item 2A - Public Hearing on Ballot Items Page 15 Packet Page 22 of 46 K:\CCCO\o-8540 2nd Rdg-3406.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 8540 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE SPECIAL MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, THE QUESTION OF WHETHER TO AMEND SECTIONS 5 AND 9 OF THE BOULDER HOME RULE CHARTER TO PROHBIIT RUNNING FOR MORE THAN ONE OFFICE AT AN ELECTION, ALLOW A COUNCIL MEMBER WHOSE TERM DOES NOT EXPIRE AT THE ELECTION TO RUN FOR MAYOR IN THE ELECTION, FILL A VACANCY FOR THE EXPIRED TERM, AND CHANGE THE SWEARING-IN DATE OF NEWLY ELECTED OFFICIALS; 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 special municipal coordinated election is called to be held on Tuesday, November 8, 2022. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder entitled by law to vote, that will allow voters to determine whether to amend the Boulder Home Rule Charter to prevent candidates from running for more than one office at the same election, allowing council members whose terms have not expired to run for mayor without resigning their seat unless elected mayor, filling vacancies for the vacated term, and changing the swearing-in date of newly elected officials to December. The material to be removed is shown stricken through with solid line and the material to be added is shown as underlined. The last sentence of the first paragraph of Section 5 shows as added but is relocated language from another Attachment A - Proposed Ordinance 8540 Item 2A - Public Hearing on Ballot Items Page 16 Packet Page 23 of 46 K:\CCCO\o-8540 2nd Rdg-3406.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 portion of Section 5. Sec. 5. - Terms of office-election-recall. . . . A person may be a candidate for only one office at any election. A council member whose term is not ending the November of the election may run for mayor without resigning their council seat. Such council member shall not be required to resign as a council member unless they win the election to the office of mayor. If a council member whose term is not ending the November of the election wins election to the office of mayor, then the council candidate receiving the fifth highest number of votes in that same election shall complete that council member’s term. The term of office for the mayor shall be two years. If there shall be vacancies to be filled at a general municipal election, other than those occurring due to the expiration of a regular term, the vacancy term shall be for the duration of the vacated termtwo years, and additional council members or a mayor shall be elected until there shall be a council of eight council members and a mayor. In the event that a council member whose term is not ending the November of the election wins election to the office of mayor in the regular municipal election, then the council candidate receiving the fifth highest number of votes in that same election shall complete that council member’s term. The terms of all council members and the mayor shall begin at 10:00 a.m. on the third Tuesday in November 5:00 p.m. on the day of the first business meeting of the council in December following their respective elections. In the event that one or more of the prevailing candidates is not determined by such time because the vote count is incomplete or inconclusive, or a recount is required, the terms for such council member(s) shall not begin until the business day following the final determination of the election results for that candidate. All council members and the mayor shall be subject to recall as provided by this charter. Sec. 9. – Meetings of council. At 10:00 a.m. on the third Tuesday in November 5:00 p.m. on the day of the first business meeting of the council in December following each general municipal election, the council shall meet at the usual place of holding meetings, at which time the newly elected council members shall take office. Thereafter the council shall meet at such times as may be prescribed by ordinance or resolution and shall meet in regular session at least once in each calendar month. The mayor, acting mayor, or any five council members may call special meetings upon at least twelve hours' written notice to each council member, served personally on each, or left at each member's place of residence. . . . Attachment A - Proposed Ordinance 8540 Item 2A - Public Hearing on Ballot Items Page 17 Packet Page 24 of 46 K:\CCCO\o-8540 2nd Rdg-3406.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. 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 Clarification of Candidate Issues Shall Sections 5 and 9 of the Boulder Home Rule Charter be amended to allow candidates to run for only one office at an election, allow a council member whose term does not end at the election to run for mayor without resigning their seat unless they win the office of mayor, fill vacancies for the remainder of the vacated term, and change the swearing-in date of newly elected officials as provided in Ordinance 8540? For the Measure ____ Against the Measure ____ Section 4. 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 5. 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 8540 Item 2A - Public Hearing on Ballot Items Page 18 Packet Page 25 of 46 K:\CCCO\o-8540 2nd Rdg-3406.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 21st day of July 2022. ____________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk READ ON SECOND READING, PASSED AND ADOPTED, this 11th day of August 2022. ___________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk Attachment A - Proposed Ordinance 8540 Item 2A - Public Hearing on Ballot Items Page 19 Packet Page 26 of 46 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: August 11, 2022 AGENDA TITLE Second reading and consideration of a motion to adopt Ordinance 8546 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 5, 14 and 22 of the Boulder Home Rule Charter to change the regular municipal elections of candidates to even-numbered years beginning in 2026; implement the transition by reducing the terms of the council members elected in 2023 and 2025 to three years and increasing the term of the mayor elected in 2023 to three years; specifying the form of the ballot and other election procedures; and setting forth related details PRESENTERS Nuria Rivera-Vandermyde, City Manager Teresa Tate, City Attorney Kathy Haddock, Senior Counsel Elesha Johnson, City Clerk EXECUTIVE SUMMARY At the special meeting on June 14, 2022, council requested that staff present an ordinance with proposed ballot language to change the regular municipal election of 2023 for election of candidates to 2024 and every even-numbered years thereafter rather than odd- numbered years, start the direct election of the mayor in 2026, and the procedures for the transition including how the mayor will be selected prior to the 2026 election. At the council meeting on June 21, 2022, council requested some revisions to the language and that the proposed ordinance include only amendments to the Charter about changing Item 2A - Public Hearing on Ballot Items Page 20 Packet Page 27 of 46 regular elections to even-numbered years. At first reading on July 21, 2022, council was presented with two options for implementing the change in Proposed Ordinances 8541 and 8546. The revised first reading agenda memorandum and draft ordinances can be found here. Council passed to second reading only Proposed Ordinance 8546 (Attachment A). Proposed 8546 includes the following changes to the Charter: The amendment to Section 5: A. Reduce the terms of the four council members elected in 2023 and 2025 only to three-year terms, otherwise terms remain at four years. The amendments to Section 14: A. Increase the term of the mayor elected in 2023 only; and B. Clarify that the term of the mayor is two years other than the mayor elected in 2023 (rather than is required to serve for two years). The amendment to Section 22: A. Changes the regular municipal election of the city from odd-numbered years to even-numbered years starting in 2026. 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 8546 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the question of whether to amend Sections 5, 14 and 22 of the Boulder Home Rule Charter to change the regular municipal elections of candidates to even-numbered years beginning in 2026; implement the transition by reducing the terms of the council members elected in 2023 and 2025 to three years and increasing the term of the mayor elected in 2023 to three years; specifying the form of the ballot and other election procedures; and setting forth related details NEXT STEPS Adoption of Proposed Ordinance 8546 on August 11, 2022, or such later date prior to September 1, 2022, as determined by council. Item 2A - Public Hearing on Ballot Items Page 21 Packet Page 28 of 46 ATTACHMENT A – Proposed Ordinance 8546 Item 2A - Public Hearing on Ballot Items Page 22 Packet Page 29 of 46 K:\CCCO\o-8546 2nd Rdg-3406.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 8546 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE SPECIAL MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, THE QUESTION OF WHETHER TO AMEND SECTIONS 5, 14 AND 22 OF THE BOULDER HOME RULE CHARTER TO CHANGE THE REGULAR MUNICIPAL ELECTIONS OF CANDIDATES TO EVEN-NUMBERED YEARS BEGINNING IN 2026; IMPLEMENT THE TRANSITION BY REDUCING THE TERMS OF THE COUNCIL MEMBERS ELECTED IN 2023 AND 2025 TO THREE YEARS AND INCREASING THE TERM OF THE MAYOR ELECTED IN 2023 TO THREE YEARS; 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 special municipal coordinated election is called to be held on Tuesday, November 8, 2022. Section 2. At that election, a question shall be submitted to the electors of the City of Boulder entitled by law to vote, that will allow voters to determine whether to amend the Boulder Home Rule Charter to change regular municipal elections to even-numbered years starting in 2026, and implement the transition by reducing the terms of the council members elected in 2023 and 2025 to three years and increasing the term of the mayor elected in 2023 to three years. Except for those elections, the terms of council members would be four years and the term of the mayor would be two years. The material to be removed is shown stricken through with solid line and the material to be added is shown as underlined. Attachment A - Proposed Ordinance 8546 Item 2A - Public Hearing on Ballot Items Page 23 Packet Page 30 of 46 K:\CCCO\o-8546 2nd Rdg-3406.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. 5. – Terms of office-election-recall. To switch candidate elections from odd-numbered years to even-numbered years, the terms of the council members elected in 2023 and 2025 shall be for three years. Other than for those council members elected in 2023 and 2025, Tthe terms of office for council members shall be four years. and two years as hereinafter provided: beginning with the 2023 regular municipal election, when the mayor shall first be elected pursuant to Section 14 of this charter, the four candidates receiving the highest number of votes shall be elected for four-year terms. The term of office for the mayor shall be two years. . . . Sec. 14. – Selection and term of office of mayor. If three or more candidates run for the office of mayor, then the election shall be conducted by ranked choice (instant runoff) voting. The mayor shall serve as mayor for a term of two years, and The term of office for the mayor elected in 2023 shall be three years. Thereafter, the term of office for the mayor shall be for two years. The mayor shall serve until a successor is duly chosen and qualified. Sec. 22. – Municipal elections defined. On the Tuesday in November of the state ballot issue election in 2023 and 2025, the City of Boulder shall hold its regular municipal election. Beginning in November 2026, Aa regular municipal election shall be held in the City of Boulder on the same Tuesday in November of every odd even numbered year as the state ballot issue general elections in odd even number years and shall be known as the regular municipal election. All other municipal elections shall be known as special municipal elections. Section 3. 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 8546 Item 2A - Public Hearing on Ballot Items Page 24 Packet Page 31 of 46 K:\CCCO\o-8546 2nd Rdg-3406.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. ____ Change Regular Municipal Election to Even Years Shall Sections 5, 14, and 22 of the Boulder Home Rule Charter be amended to change the regular municipal election date to even numbered years beginning with the November 2026 election date, and reduce the term of the council members elected in 2023 and 2025 to three years and increase the term of the mayor elected in 2023 to three years to implement the transition, all as more specifically provided in Ordinance 8546? For the Measure ____ Against the Measure ____ Section 4. 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 5. 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 21st day of July 2022. ____________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk Attachment A - Proposed Ordinance 8546 Item 2A - Public Hearing on Ballot Items Page 25 Packet Page 32 of 46 K:\CCCO\o-8546 2nd Rdg-3406.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 AND ADOPTED, this 11th day of August 2022. ___________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk Attachment A - Proposed Ordinance 8546 Item 2A - Public Hearing on Ballot Items Page 26 Packet Page 33 of 46 CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: August 11, 2022 AGENDA TITLE Second reading and consideration of a motion to adopt Ordinance 8542 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the questions of authorizing the City Council to replace the existing utility occupation tax and climate action plan excise tax with a new climate tax beginning January 1, 2023, and expiring December 31, 2040, and authorizing debt to be repaid from such tax up to a principal amount of $52,900,000 to meet the city’s climate goals; specifying the form of the ballot and other election procedures; and setting forth related details PRESENTERS Nuria Rivera-Vandermyde, City Manager Teresa Tate, City Attorney Kathy Haddock, Senior Counsel Kara Skinner, Chief Financial Officer Jonathan Koehn, Climate Initiatives Director Carolyn Elam, Sustainability Sr. Manager, CI Yael Gichon, Climate Initiatives Principal Project Manager EXECUTIVE SUMMARY The first reading agenda memorandum for the July 21, 2022, meeting includes extensive staff analysis and input received from the public, as well as the council discussion leading to Proposed Ordinance 8542 (Attachment A). After the first reading memorandum was published, on July 19, 2022, the Council Financial Strategy Committee discussed the proposed Climate Tax. Committee members had questions regarding staff’s Item 2A - Public Hearing on Ballot Items Page 27 Packet Page 34 of 46 recommendations for the amount ($6.5 million) and the term (15 years). Staff explained its recommendation based on several considerations discussed in the first reading memorandum including a funding level to address identified high-priority programs and project needs, impact to taxpayers (residential, commercial and industrial) particularly considering the current economic environment, and other expected ballot items, and a term that aligns with the city’s climate action plan goal time horizon. The Committee did not have any changes to the ordinance as proposed by staff. On July 21, 2022, council passed Proposed Ordinance 8542 on first reading. The proposed ordinance includes the issue for the approval of the Climate Tax and the issue for debt authorization as well as the code changes that will go into effect if the climate tax ballot issue is approved by the voters. Attachment A has corrected the typo that was in the first reading packet in the ordinance title changing “utilizing” to “utility.” The ballot issue for the Climate Tax replaces the existing utility occupation (UOT) and climate action plan (CAP) taxes with a climate tax of $6.5 million for the first year, adjusted annually for inflation, levied on any provider of electricity and natural gas in the city. The ballot issue for the debt authorization sets the maximum principal amount of the debt at $52,900,000. The ballot issue must include the maximum debt authorization – principal amount and total maximum repayment amount. The full principal amount authorized in the ballot issue is not required to be issued. The actual amount of the debt issued, the debt structure, the terms of the debt, whether the debt can be paid from other legally available revenue to reduce the interest rate, the use of bond proceeds, and the budget and appropriations to repay the debt are all determined by council up to the amount authorized in the ballot issue. 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 8542 submitting to the registered electors of the City of Boulder at the Special Municipal Coordinated Election to be held on Tuesday, November 8, 2022, the questions of authorizing the City Council to replace the existing utility occupation tax and climate action plan excise tax with a new climate tax beginning January 1, 2023, and expiring December 31, 2040, and authorizing debt to be repaid from such tax up to a principal amount of $52,900,000 to meet the city’s climate goals; specifying the form of the ballot and other election procedures; and setting forth related details Item 2A - Public Hearing on Ballot Items Page 28 Packet Page 35 of 46 FIRST READING QUESTIONS Clarification was requested regarding the tax and whether a tax table was needed in the ordinance. The actual tax is levied as a utility occupation tax rather than like the CAP tax that was levied per kilowatt hour. For the new Climate Tax, it is levied on the provider of electricity and natural gas as a lump sum of $6.5 million. It is up to the provider, currently Xcel Energy, to determine how to allocate that tax among its customers. Earlier packets included a chart showing an approximation of the tax among residential, commercial and industrial customers. The question does not necessitate any change to the proposed ordinance. Table 1: Current and Projected Average Annual Cost of City of Boulder Climate Taxes Customer Type Current Annual Cost (CAP + UOT) Proposed Annual Cost (Climate Tax at $5 million) Proposed Annual Cost (Climate Tax at $6.5 million) Proposed Annual Cost (Climate Tax at $8 million) Residential $42.95 $38.20 $49.66 $61.12 Commercial $292.42 $374.90 $487.37 $599.84 Industrial $1,084.11 $1389.89 $1,806.85 $2,223.82 Total Revenue for Climate Efforts $3.9 million $5 million $6.5 million $8 million NEXT STEPS Adoption of Proposed Ordinance 8542 on August 11, 2022, or such later date prior to September 1, 2022, as determined by council. ATTACHMENT A – Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 29 Packet Page 36 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 8542 AN ORDINANCE SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY OF BOULDER AT THE SPECIAL MUNICIPAL COORDINATED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, THE QUESTIONS OF AUTHORIZING THE CITY COUNCIL TO REPLACE THE EXISTING UTILITY OCCUPATION TAX AND CLIMATE ACTION PLAN EXCISE TAX WITH A NEW CLIMATE TAX BEGINNING JANUARY 1, 2023, AND EXPIRING DECEMBER 31, 2040, AND AUTHORIZING DEBT TO BE REPAID FROM SUCH TAX UP TO A PRINCIPAL AMOUNT OF $52,900,000 TO MEET THE CITY’S CLIMATE GOALS; 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 special municipal coordinated election is called to be held on Tuesday, November 8, 2022. Section 2. At that election, two measures shall be submitted to the electors of the City of Boulder entitled by law to vote. The first will allow electors to consider whether to replace the existing Utility Occupation Tax set to expire on December 31, 2025 and the Climate Action Plan Excise Tax set to expire March 31, 2023 with a Climate Tax commencing January 1, 2023 and expiring December 31, 2040. The second measure will allow electors to consider whether to approve new debt payable from such Climate Tax up to a maximum principal amount of $52,900,000. This new tax and the debt will help meet the city’s climate goals, maintain existing programs and services, and stabilize funding sources as well as leverage future opportunities to meet the city’s climate goals. Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 30 Packet Page 37 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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. The official ballot shall contain the following ballot titles, which shall also be the designation and submission clause for each issue: BALLOT ISSUE NO. ____ SHALL CITY OF BOULDER TAXES BE INCREASED $6.5 MILLION (FIRST, FULL FISCAL YEAR DOLLAR INCREASE) ANNUALLY AND INCREASING ANNUALLY BY THE CONSUMER PRICE INDEX BY IMPOSING A CLIMATE TAX ON THE DELIVERY OF ELECTRICITY AND NATURAL GAS AS PROVIDED IN ORDINANCE 8542; AND SHALL THE EXISTING CLIMATE ACTION PLAN EXCISE TAX SET TO EXPIRE MARCH 31, 2023 AND THE UTILITY OCCUPATION TAX SET TO EXPIRE DECEMBER 31, 2025 BE REPEALED; AND SHALL THE CLIMATE TAX BEGIN JANUARY 1, 2023, AND EXPIRE DECEMBER 31, 2040; WITH THE REVENUE FROM THE CLIMATE TAX AND ALL EARNINGS THEREON TO BE USED TO MAINTAIN AND EXPAND CLIMATE FOCUSED PROGRAMS AND SERVICES, FINANCE CERTAIN CAPITAL PROJECTS AND STABILIZE FUNDING FOR INITIATIVES TO MEET THE CITY’S CLIMATE GOALS; INCLUDING WITHOUT LIMITATION ITEMS SUCH AS RESIDENTIAL AND BUSINESS INCENTIVES TO REDUCE ENERGY USE; ACCELERATE BUILDING WEATHERIZATION AND ELECTRIFICATION; LOCAL RENEWABLE ENERGY GENERATION AND STORAGE; MICROGRIDS AND DISTRICT SYSTEMS THAT LEAD TO INCREASED SYSTEM RELIABILITY AND RESILIENCE; EQUITABLE INVESTMENTS IN HIGH PERFORMING, HEALTHY BUILDINGS; SERVICES TO SUPPORT ZERO EMISSION; MOBILITY OPTIONS WITH AN EMPHASIS ON SOLUTIONS FOR CURRENTLY UNDERSERVED SEGMENTS OF THE COMMUNITY; ZERO-WASTE EFFORTS INCLUDING REUSE, REPAIR AND RECYCLING; NATURAL CLIMATE SOLUTIONS TO ENHANCE ECOSYSTEMS, IMPROVE AIR QUALITY AND BUFFER EXTREME HEAT EVENTS; GRANTS FOR COMMUNITY-BASED CLIMATE AND RESILIENCE ACTIONS; WILDFIRE RESILIENCE STRATEGIES SUCH AS WILDFIRE HOME RISK ASSESSMENTS, WILDFIRE MITIGATION PLANNING AND IMPLEMENTATION; OUTREACH AND EDUCATION; RESIDENTIAL AND BUSINESS GRANTS/REBATES FOR THE ACCELERATION OF UNDERGROUNDING UTILITY LINES IN HIGH-RISK AREAS; GRANTS/REBATES FOR Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 31 Packet Page 38 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 QUALIFYING FINANCIAL ASSISTANCE FOR LOW-INCOME UTILITY CUSTOMERS; LEVERAGE FOR OTHER FUNDING SOURCES SUCH AS FEDERAL INFRASTRUCTURE, CLIMATE, AND RESILIENCE FUNDS TO MEET LOCAL NEEDS; AND COST-SHARING AGREEMENTS FOR EMISSIONS MITIGATION AND CLIMATE RESILIENCE? YES/FOR ____ NO/AGAINST____ BALLOT ISSUE NO. ____ SHALL CITY OF BOULDER DEBT BE INCREASED UP TO $52.9 MILLION (PRINCIPAL AMOUNT) WITH A MAXIMUM REPAYMENT COST NOT TO EXCEED $75 MILLION (SUCH AMOUNT BEING THE TOTAL PRINCIPAL AND INTEREST THAT COULD BE PAYABLE OVER THE MAXIMUM LIFE OF THE DEBT) SUCH DEBT TO BE ISSUED ONLY IF THE VOTERS APPROVE THE CLIMATE TAX IN BALLOT ISSUE ___ AND PAYABLE FROM THE CLIMATE TAX AND FROM OTHER LEGALLLY AVAILABLE REVENUES AS DETERMINED BY COUNCIL; WITH THE PROCEEDS OF SUCH DEBT AND EARNINGS THEREON BEING USED FOR THE SAME PURPOSES AS THE CLIMATE TAX IN THE BALLOT ISSUE? YES/FOR ____ NO/AGAINST____ Section 4. If a majority of all the votes cast at the election on the tax increase issue submitted are for the issue, the issue shall be deemed to have passed and the Boulder Revised Code shall be amended as follows: Chapter 12 - Climate Action Plan Excise Tax REPEAL 3-12-1. Legislative Intent. It is the purpose of this chapter to raise revenue to implement the City’s Climate Action Plan, including incentives, services and other assistance to Boulder residents and businesses to improve energy efficiency, expand the use of renewable energy, and take other necessary steps toward reducing local greenhouse gas emissions. Additionally, the city council determines and declares that the consumption of electricity within the City is the exercise of a taxable privilege. The city council further declares that the purpose of the levy of the taxes imposed by this chapter Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 32 Packet Page 39 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 is for the raising of funds for the payment of the expenses incurred to implement the Climate Action Plan; and in accordance with this purpose, all of the proceeds of this excise tax should be placed in and become a part of a separate special revenue fund of the City. 3-12-2. Imposition of Climate Action Plan Excise Tax. (a) Any person consuming electricity shall pay a Climate Action Plan excise tax at the rate prescribed by subsection (c) of this section, as applicable. (b) The Climate Action Plan excise tax shall expire on March 31, 2023. (c) The Climate Action Plan excise tax rates shall be: Category Tax Residential $0.0049 per kWh Commercial 0.0009 per kWh Industrial 0.0003 per kWh 3-12-3. Exemptions. The portion of electricity voluntarily purchased as utility provided wind power shall be exempt. 3-12-4. Payment of Tax. Any incumbent electricity provider operating within the City pursuant to a franchise or otherwise (“Provider”) shall bill and collect the Climate Action Plan excise tax and shall remit said tax to the city manager in the manner required by section 3-12-5, “Payment Schedule, Reporting and Inspection of Records,” B.R.C. 1981. The tax may be expressly identified on any consumer bills as the “The City of Boulder Climate Action Plan Excise Tax” or as the “Climate Action Plan Tax.” (a) For the Climate Action Plan excise tax amounts billed pursuant to this chapter, payment shall be made by the Provider in monthly installments not more than thirty days following the close of the month for which payment is to be made. Initial and final payments shall be prorated for the portions of the months at the beginning and end of the term of this excise tax. (b) In addition, the Provider shall also submit monthly reports to the city supporting the amount of the Climate Action Plan excise tax remitted for that month including energy use and amounts remitted by sector and Windsource electricity purchases exempted by sector. Electronic or paper reports are acceptable. Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 33 Packet Page 40 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 (c) It shall be the duty of the Provider to keep and preserve, for a period of three years, suitable records and other such books or accounts, including, without limitation, original sales and purchase records, as may be necessary to determine the amount of the Climate Action Plan excise tax for the collection of which the Provider is liable under this chapter. The city manager and agents and representatives thereof are entitled at any reasonable time, upon adequate notice, to examine the books and records of the Provider and to make copies of the entries or contents thereof. 3-12-6, 3-12-7. Reserved. Chapter 13 - Climate Utility Occupation Tax 3-13-1. Legislative Purpose, Findings, and Intent. (a) Purpose. It is the purpose of this chapter to implement the city’s climate tax as a utility occupation tax on the delivery of electricity and natural gas passed by the voters on November 8, 2022. (1) Passed by the voters on November 2, 2010, as a replacement for a fee paid under franchise agreement with a utility provider. (2) Amended by the voters on November 1, 2011, to increase the amount of the tax and extend the tax to December 31, 2017. (3) Further amended by the voters on November 3, 2015, to extend that portion of the tax that was initially approved by the voters in 2010 until December 31, 2022. (4) Further amended by the voters on November 7, 2017, to extend that portion of the tax that was initially approved by the voters in 2011 until December 31, 2022 and increased the amount of this portion of the tax for 2018 and 2019. (5) Further amended and repurposed by the voters on November 3, 2020, to extend that portion of the tax that was initially approved by the voters in 2011 until December 31, 2025 to pay all costs associated with the formation of a municipal electric utility and to be used to fund projects, pilots, initiatives, and research that support the city’s clean energy goals in the context of the city’s racial equity goals and the community’s commitment to the Paris Climate Agreement and to extend that portion through December 31, 2025. (b) Findings. The city council finds that: (1) The occupation of delivering electricity and natural gas within the city is the exercise of a taxable privilege; (2) The city has levied a utility occupation tax on the delivery of electricity and natural gas since 2010; levy of the portion of the utility occupation tax approved by the voters on November 2, 2010, and imposed by this chapter: (A) The tax is to replace a franchise fee and therefore should not be ass essed against any public utility obligated to pay a franchise fee; and (B) The revenue collected should be limited to amounts reasonably expected to be collected under a franchise. Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 34 Packet Page 41 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 (3) The levy of the portion of the climate utility occupation tax approved by the voters on November 8, 20221, 2011, and imposed by this chapter is to provide funding to pay: (A) All costs associated with municipalization; (AB) Costs of projects, pilots, initiatives, and research that support the city’s clean energy goals in the context of the city’s racial equity goals; and (BC) Costs of programs and services that are part of the partnership with Xcel Energy approved by the voters on November 3, 2020 as ballot issue 2D.; and (C) Costs authorized in the ballot issue approved by the voters. (c) Intent. The city council intends to use the funds collected pursuant to this tax for general fund purposes to meet the city’s climate goal to reduce greenhouse gas emissions 70% by 2030; become a Net Zero city by 2035 and become a Carbon-Positive city by 2040. during the time when the city explores a clean energy future with more stable energy rates and to implement such plans, and for the purpose of funding the costs of further exploration and planning for the creation of a municipal utility and acquisition of an existing electric distribution system. The city council intends to give full effect to the ballot measures approved by the voters. (d) Usage of Funds. Funds shall be used, including but not limited to the following purposes: (1) Providing energy-related assistance to disadvantaged members of the community, including support for utility bill payments and access to renewable energy; (2) Improving system reliability and modernizing and supporting clean energy-related businesses, including, without limitation, new approaches in electrification of buildings and transportation and enhancement of resilience; (3) Implementing a partnership agreement with Public Service Company of Colorado; and (4) Increasing access to energy efficiency and renewable energy solutions. 3-13-2. Imposition of Occupation Tax. (a) Payment of Tax Required. No utility delivering electricity and gas to residential, commercial, or industrial customers shall fail to pay to the city manager the utility occupation tax imposed by this chapter. (b) Original Tax Effective Date and Expiration Date. The utility occupation tax of $4,100,000 was effective January 1, 2011. For that portion of the tax approved by the voters in 2010 for general fund purposes described Section 3-13-9(a), B.R.C. 1981, the tax shall expire on December 31, 2022 or earlier if the taxpayer is obligated to pay a comparable fee under a franchise agreement or other license or permit agreement with the city. (c) Extension and Increase Dates. The increase in the amount of the utility occupation tax approved by the voters in 2011, extended and temporarily increased in 2017, and extended to December 31, 2025 and repurposed in 2020 for funding the costs of municipalization and Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 35 Packet Page 42 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 for projects, pilots, initiatives, and research that support the city’s clean energy goals in the context of the city’s racial equity goals. (d) Tax Rate. The utility occupation tax shall be $6,500,000 in the following amounts, effective January 1, 2023. The rate of tax due on January 1 of 2024 and each year thereafter until December 31, 2040, shall be increased by the [CPI]: Year Tax Rate without an effective franchise with taxpayer Tax Rate with an effective franchise with taxpayer 2021 $6,556,362 $2,071,985 2022 $6,556,362 $2,071,985 2023 $2,071,985 2024 $2,071,985 2025 $2,071,985 The tax rate in each year shall be adjusted annually as provided in Section 3-13-3, “Adjustments,” B.R.C. 1981. 3-13-3. Adjustments. (a) Limitations on Tax Increases. Beginning January 1, 2012, the maximum annual tax rate increase shall be the lesser of three percent or the average amount of rate increases made by public utility companies delivering natural gas or electricity in the city in the previous year as calculated pursuant to Subsections (b) through (d) of this section. (b) Annual Utility Rate Study. The city manager shall review the rate tariffs filed by all investor-owned public utility companies delivering gas or electricity in the city. (1) The city manager shall list all electrical rates in the electrical tariff expressed in terms of cents per kilowatt hour from lowest to highest and select from that list the median electric rate. If there is more than one investor-owned electric utility company delivering electricity in the city, the city manager shall ascertain the median electrical rate for each such company and then produce an average median rate charge for electricity in the city. (2) The city manager shall ascertain the standard rate per decatherm charged by each public utility company delivering gas in the city. If there is more than one investor- owned gas utility company delivering gas in the city, the city manager will average the standard rate per decatherm for each such company to produce an average standard rate per decatherm charged for delivering gas in the city. (c) Annually, the city manager shall calculate an average increase by comparing the rates determined in Subsection (b) of this section with comparable rates charged in the previous calendar year to produce a percentage average increase for each such rate. The city manager shall then average those rate increases and compare that average to determine whether it is Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 36 Packet Page 43 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 greater than or less than three percent. The utility occupation tax shall then be increased by the lesser of the two percentages. The city manager will recommend any such tax increase, subject to the limitations of this section, to the city council concurrent with the annual budget process. (d) Tax Increase Date. The effective amount of tax due shall be increased as of January 1 of each year. (e) Credit if franchise fee paid. Any franchise fee paid by the taxpayer to the city in any year shall be credited to the portion of the utility occupation tax approved on November 2, 2010 due in that year. Such credit will not be applied to that portion of the utility occupation tax that was approved on November 3, 2020. 3-13-4. Payment of Tax. Utility occupation tax payments shall be remitted to the city manager in equal monthly installments not more than thirty days following the end of each month. The first payment following the November 8, 20223, 2020 election shall be due February 20, 20231. Initial and final payments shall be prorated for the portions of the months at the beginning and end of the term of this utility occupation tax. 3-13-5. Designation of Tax. Persons taxed under the provisions of this chapter are hereby authorized to reflect this tax under the title of “Climate Utility Occupation Tax.” 3-13-6, 3-13-7. Reserved. 3-13-8. Tax not on Interstate Commerce; not a Franchise. The tax provided in this chapter is upon occupations and businesses in the performance of local functions and is not a tax upon functions relating to interstate commerce. None of the terms of this chapter mean that the city has granted any provider a franchise. 3-13-9. Dedicated Revenues. (a) General Fund Revenue. The amount of the occupation tax revenue attributable to the ballot measure passed by the voters in 2010 (Ord. No. 7751) and extended in time by the voters in 2011 (Ord. No. 7804) shall be used for general revenue needs of the city. (b) Revenue for Electric Utility Exploration and Planning for Creation. The amount of the increase in the occupation tax revenue attributable to the ballot measure passed by the voters in 2011 shall be used for the purpose of funding the costs of further exploration of and planning for both the creation of a municipal electric utility and acquiring an existing electric distribution system. (c) Revenue that Supports City’s Clean Energy Goals. The amount of the repurposing of the climate occupation tax revenue passed by the voters in 20220 that is not necessary for the costs of municipalization shall be used for the purpose of funding the costs of projects, Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 37 Packet Page 44 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 pilots, initiatives, and research that support the city’s clean energy goals in the context of the city’s racial equity goals. Section 5. If a majority of all the votes cast at the election on the tax increase issue and the debt authorization issue submitted are for the issues, the issue shall be deemed to have passed and any bonds issues shall be in compliance with the charter and as determined by City Council. Section 6. 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 7. 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 21st day of July 2022. ____________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 38 Packet Page 45 of 46 K:\CCCO\o-8542 2nd Rdg-3406.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 AND ADOPTED this 11th day of August 2022. ___________________________________ Aaron Brockett, Mayor Attest: ___________________________________ City Clerk Attachment A - Proposed Ordinance 8542 Item 2A - Public Hearing on Ballot Items Page 39 Packet Page 46 of 46