Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: April 2, 2026 Agenda Title Consideration of a motion to adopt Resolution 1373 authorizing the City Manager to execute a grant agreement with CDOT Division of Aeronautics for an unleaded aviation fuel subsidy at the Boulder Municipal Airport

Staff Contact • • •

Blythe Bailey, Director, Transportation and Mobility Eric Vences, Airport Manager, Transportation and Mobility Luis Toro, Senior Counsel, City Attorney’s Office

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: motion to adopt Resolution 1373 authorizing the City Manager to execute a grant agreement with CDOT Division of Aeronautics for an unleaded aviation fuel subsidy at the Boulder Municipal Airport.

Executive Summary The purpose of this agenda item is to obtain approval by City Council for the City Manager to accept and sign a grant agreement with the Colorado Department of Transportation (CDOT) Division of Aeronautics for an unleaded avgas subsidy grant at Boulder Municipal Airport. The grant, if approved, will have the impact of incentivizing fuel prices for unleaded aviation fuel by up to $2 per gallon. While not required for application, CDOT procedures now require a municipality's governing body to support successful applications via resolution prior to a final award, If approved, City staff will

move forward more expeditiously to continue to pursue unleaded fuel subsidy grants as long as the program is offered through CDOT Division of Aeronautics.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved an unleaded avgas fuel subsidy grant will be accepted from CDOT Division of Aeronautics.

Define and adopt a modified motion

Council would need to define any modifications or amendments to the draft motion language. This will likely require staff to bring back an amended version of the resolution or grant agreement.

Deny the motion or take no action

If this motion is denied the likelihood of unleaded aviation fuels being offered gets delayed.

Refer back to staff

If council refers this item back to staff we risk delaying incentives from being offered.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area This item aligns with the environmentally sustainable and economically vital SER goal areas. Citywide Strategic Plan This item aligns with Strategy 11 Prioritize sustainability values through new and existing policies and with Strategy 14 Enhance collaborative efforts to support an inclusive, healthy, sustainable, and resilient local economy that builds on core economic strengths, promotes economic mobility, and aligns with community values and priorities. Staff Notes This item promotes an increased awareness, availability, and accessibility of business resources and support offered by city and community partners. Incentivizing unleaded fuel at Boulder Municipal Airport will help to minimize environmental impacts from the use of low lead avgas currently in use as the industry transitions away from low lead avgas to unleaded avgas by 2030.

Alignment with Additional City Plans The grant is in alignment with the City’s Unleaded Avgas Transition Plan which has been attached to this agenda item for reference.

City Council History The grant has not been considered at a prior city council meeting.

Analysis The City has applied for a CDOT Aeronautics Division fuel subsidy grant, in the amount of $70,000 that will provide fuel subsidy for unleaded avgas. The grant is 90/10 with the local share being $7,000 and the State share would be $63,000. Unleaded avgas fuel incentives are one way the State of Colorado, through HB24-1235, is incentivizing the transition to unleaded avgas. The fuel subsidy being offered helps equalize fuel prices between low leaded avgas and unleaded avgas. Thereby removing the financial barrier for aircraft owners to make the transition to unleaded easier. There is another incentive provided through HB24-1235 which assists with fuel infrastructure at airports to make the transition possible. The current grant application is for fuel subsidy only and fuel infrastructure may be part of a future grant request. At this time the fixed base operator providing fuel at the airport is pursuing temporary infrastructure at the same time the City is pursuing the fuel subsidy. If the grant is approved, staff intends to enter into a reimbursement agreement with the fixed base operator providing fuel at the airport. This reimbursement agreement will outline the process for reimbursement requests by the fuel provider and identify a timeline in which offering unleaded avgas will be required. It is recommended the grant be accepted to incentivize and expedite the offering of unleaded avgas in Boulder. Additionally, the fuel subsidy should be pursued for as long as the program is offered under HB24-1235 which is tentatively through 2030. Council’s support of this action via resolution will be necessary for the final award and execution of the agreement were the City to prevail on its application.

Equity Analysis This item does not have significant equity impacts. This is because the fuel incentive will be made available to anyone purchasing unleaded avgas at the airport.

Fiscal Note Estimated Fiscal Impact Narrative This grant will not have a material impact to the 2026 budget as the local share of $7,000 will be reallocated from other budget areas within the Airport Fund; the grant revenue will pass through as a reimbursement to the fuel provider and associated expenses at the airport. Estimated expenses are shown at $63,000 to reflect this budget reallocation. The three-year table assumes grants are received each year. Staff will bring forward the appropriation for City Council review and approval at the 2026 First Adjustment-to-Base, per standard procedures. Current Year Estimated Fiscal Impact Fund(s): Airport Fund Department(s): Transportation and Mobility Program(s): Airport Administration

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance

$340,764

0

$340,764

Total Forecasted Revenue

$876,166

$63,000

$939,166

Total Estimated Expenses

$1,351,463

$63,000

$1,414,463

Ending Fund Balance(s) After Reserves

$(319,605)

0

$(319,605)

FTE

3.0

0

3.0

Item

Three-Year Estimated Fiscal Impact Assumption that the grant will be awarded in the following years

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$63,000

$0

$0

Total Estimated Expenses

$63,000

$0

$0

Net Estimated Impact

$0

$0

$0

Climate, Resilience, and Sustainability Considerations The grant for unleaded avgas fuel subsidy has negligible climate impacts. The grant is administrative and has no direct environmental impact. Consumption of unleaded avgas is ultimately up to the aircraft owner and the fuel subsidy is meant to help with that transition. It will reduce consumption of low leaded avgas. However, it is currently unknown by how much until we start comparing actual unleaded avgas fuel sales information against historical low lead avgas fuel sales data.

Community Engagement Based on the nature and scope of the fuel subsidy, city staff determined that a formal community engagement process was not necessary. This is because the fuel subsidy grant authorized by the State of Colorado under HB24-1235 already had extensive community support.

Workplan Considerations This project was identified in the 2026 Workplan under the Transportation and Mobility Department for the airport. This project will not cause another workplan item to be deprioritized.

Next Steps for City Council There will not be subsequent agenda items following a decision for accepting this grant award. Staff may bring forward future grant requests for unleaded avgas fuel infrastructure. Upon approval of the fuel subsidy grant, staff will route the grant agreement, resolution, and fuel provider reimbursement agreement for signatures.

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Attachments Attachment A - Grant Agreement 26-BDU-UL01 Attachment B - KBDU Unleaded Avgas Transition Plan