Suzy Ageton George Karakehian KC Becker Tim ... - City of Boulder

STAFF RECOMMENDATION
Suggested Motion Language:
Staff requests council consideration of this matter and action in the form of the following
motion:
Motion to adopt emergency ordinance 7825 concerning the Utilities Occupation Tax, extending
and increasing the tax rate up to an additional $1.9 million, and making the additional funds
available to support local government services, and to fund the costs of further exploration of
and planning for both the creation of a municipal electric utility and acquiring an existing
electric distribution system, as approved by the voters in the Nov. 1, 2011 general municipal
election, by the revision of Chapter 3-13 “Utility Occupation Tax,” B.R.C. 1981, and setting
forth related details.
COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS
• Economic: The projected revenue from levying the voter-approved Utility Occupation Tax
increase and extension will support local government services and fund the costs of further
exploration of and planning for the possible creation of a municipal electric utility and
acquiring an existing electric distribution system.
The discussion of Boulder’s energy future has focused on the economic risks and
opportunities associated with near-term energy decisions. In light of projected increases in
fossil fuel prices and concerns regarding the long-term availability of these supplies, it is
imperative to begin planning for and investing in alternative energy resources to secure
Boulder’s economic future.
Boulder’s current economic vitality has benefited from considerable growth of “clean
energy” companies in recent years. Continuing to position the city as an innovation hub for
clean energy will have important economic benefits. A further study of the feasibility of
municipalization of the electric utility will need to be undertaken to create a greater degree
of certainty of costs. If these costs end up being too high, the municipal utility option may
be determined to be infeasible or undesirable, leading to a decision not to proceed. This
revenue source will help the council make an informed decision.
• Environmental: The municipal electric utility may provide more opportunities to create and
implement alternative energy sources, demand side management, and energy efficiencies
that will help the city meet its carbon reduction goals.
The energy discussion in Boulder is driven by concerns about the environmental impact of
our current energy system. The high percentage of the current energy supply that comes
from coal combustion results in a very carbon-intensive electricity supply. The resulting
greenhouse gas emissions are a significant contributor to climate change. While Boulder’s
efforts to reduce its greenhouse gas emissions will not have any significant impact at the
global (or even regional) level, Boulder residents have consistently expressed their
commitment to doing their part within a global effort, and to demonstrate leadership in the
Agenda Item 5A Page 2