Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: April 2, 2026 Agenda Title Introduction, first reading and consideration of a motion to order published by title only, Ordinance 8739 amending Chapter 11-1, “Water Utility,” B.R.C. 1981, to provide additional protections for the City of Boulder municipal watershed and water supply; and setting forth related details

Staff Contact • •

Kate Dunlap, Drinking Water Quality Manager, Utilities Department Joe Taddeucci, Director of Utilities

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to introduce and order published by title only Ordinance 8739 amending Chapter 11-1, “Water Utility,” B.R.C. 1981, to provide additional protections for the City of Boulder municipal watershed and water supply; and setting forth related details.

Executive Summary The purpose of this item is for City Council to consider Ordinance 8739 (referred to herein as the “Watershed Protection Ordinance”) (Attachment A), which provides additional protections for the city’s drinking water supplies. The city’s primary sources of drinking water are located outside of the city’s incorporated boundaries, resulting in limited enforcement mechanisms in the event of water supply contamination, such as

from illicit discharges or hazardous materials spills. As allowed under state law1, municipalities may enact ordinances to assert extraterritorial jurisdiction to protect water supplies from pollution. More than a dozen Colorado municipalities have passed such ordinances to proactively protect their water supplies. If the ordinance is adopted, pollution of the city’s water supplies within the Watershed Protection Area would be a municipal code violation, allowing the city to impose penalties and other enforcement mechanisms for non-compliance as an additional layer of water quality protection. The Watershed Protection Area will be defined by City Manager Rule (Attachment B). The city has discussed the ordinance with staff from Boulder County and Town of Nederland – key areas of overlapping jurisdictional authority. These entities are not opposed to the ordinance as it will not infringe upon their ability to regulate activities, and it also provides additional protections for water supplies within their jurisdictions.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved, the Ordinance will proceed to second reading for consideration of adoption.

Define and adopt a modified motion

Council would need to specify any modifications or amendments to the Ordinance. This may require staff to bring back an amended version for first reading or proposed amendments for consideration at second reading. Any amendment at second reading will require a third hearing.

Deny the motion or take no action

If this motion is denied, the ordinance will not move forward to second reading or adoption.

Refer back to staff

If council refers this item back to staff, staff will consider any direction provided by council regarding this ordinance.

1 Colorado Revised Statute § 31-15-707(1)(b). https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-

31.pdf; starts on page 207.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area Safe: Protecting the city’s source water supply helps to ensure the city can deliver clean, safe drinking water to the community. Environmentally Sustainable: The Watershed Protection Ordinance may prevent or deter contamination, protecting source water quality and the environment. High quality source water also requires less chemical use during water treatment, which is more environmentally sustainable. Economically Vital: Protecting the water supply helps to ensure lower water treatment costs and associated lower water utility bills for customers. Citywide Strategic Plan The ordinance generally supports the Strategic Plan goal of Environmental Sustainability in caring for our natural resources. Staff Notes N/A

Alignment with Additional City Plans 2023 Source Water Protection Plan – Implementing a Watershed Protection Ordinance is a primary recommendation in the city’s 2023 Source Water Protection Plan (Attachment C), which was developed and updated through a public engagement process.

City Council History This item has not previously come before council. This item has been on staff’s work plan as part of the 2023 Source Water Protection Plan implementation.

Analysis Protecting water supplies at the source is a critical component of the city’s multi-barrier approach to providing clean and safe drinking water for the community. Through proactive partnerships and project implementation, the city has a history of investing in source water protection measures to maintain high water quality. These efforts help to maintain lower water treatment costs, associated customer water utility rates, and minimize the potential for taste and odor or regulatory compliance issues in our drinking water.

Two-thirds of the city’s water supply is from the upper Boulder Creek watershed, including Barker Reservoir and the headwaters of North Boulder Creek. The city also treats water from Carter Lake (via a pipeline) or Boulder Reservoir as a backup water source. The watersheds that feed these important drinking water sources are outside of the city’s incorporated boundaries. Because the water supply is largely outside of city limits, the city currently has limited ability to pursue enforcement in the event of contamination such as from illicit discharges or hazardous materials spills. Under state law,3 Colorado municipalities may enact ordinances to assert extraterritorial jurisdiction to protect water supplies from pollution up to five miles upstream from where the water is taken. To help ensure longterm protection of the water supply, implementing a Watershed Protection Ordinance was a primary recommendation in the 2023 Source Water Protection Plan, which was developed and updated through a public engagement process. More than a dozen Colorado municipalities currently have such ordinances, ranging from basic prohibitions against contamination to full permitting programs for activities within a protected area. Staff initially considered developing a watershed protection permitting program for certain activities within a protected area; however, staff opted not to pursue this route, because the potential benefits would not outweigh the administrative burden of implementing such a program and because a city permit would, in many cases, be duplicative of county or state permitting programs that already offer protections. If the proposed ordinance is adopted, pollution to the city’s water supplies within the Watershed Protection Area (Attachment B) will be a municipal code violation, allowing the city to impose penalties and other enforcement mechanisms for non-compliance as an additional layer of water quality protection. Penalties can serve as a deterrent for contamination. Additionally, any fees and penalties collected through enforcement could be applied to offset the costs of remediation. The proposed enforcement mechanisms align with other sections of Boulder Revised Code 1981 that address water quality within the city boundaries. The ordinance also does not infringe upon the ability of other entities to regulate activities, including Boulder County and the Town of Nederland.

Equity Analysis The Racial Equity Instrument was used to evaluate potential unintended impacts of the proposed Watershed Protection Ordinance. The process confirmed that all community members who receive the City of Boulder’s drinking water will benefit by having a better protected water supply. Following adoption of the ordinance, staff will develop an 3 Colorado Revised Statute § 31-15-707(1)(b). https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-

31.pdf; starts on page 207.

enforcement response plan to ensure consistency and fairness in enforcement. A public-facing online map of the ordinance boundary will be available in both English and Spanish, and staff will offer additional translation services as requested.

Fiscal Note Estimated Fiscal Impact Narrative The proposed ordinance is not anticipated to incur additional costs or significant staff time. City staff already partner with local and state agencies to track activities that have the potential to adversely impact water quality. In the event of water supply contamination, staff time for enforcement is expected to be less time-consuming and less costly than pursuing legal action without the ordinance.

Climate, Resilience, and Sustainability Considerations Protecting the drinking water supply at the source is part of the city’s multi-barrier approach to providing clean, safe, and affordable drinking water for the community. While staff do not anticipate measurable climate impacts as a result of passing this ordinance, protection of the city’s water supply increases resiliency and the ability to withstand changes to water supply conditions as a result of climate change.

Community Engagement City staff have discussed the proposed Watershed Protection Ordinance with staff from Boulder County and Town of Nederland — key areas of overlapping jurisdictional authority. These entities are staying engaged in the process and are not opposed to the ordinance since it will not infringe upon the authority of others to regulate activities. In fact, the Watershed Protection Ordinance will provide simultaneous protections for Nederland’s water supply and also for many community members living in unincorporated Boulder County. Staff did not engage the public on the proposed Watershed Protection Ordinance, as it was determined that the ordinance does not introduce any new administrative or permitting requirements or burdens for the public. Adoption is not expected to affect staff operations or priorities and has no direct implications for community members beyond supporting water supply protection. Staff presented to the Water Resources Advisory Board (WRAB) on the proposed ordinance in January 2026. The four WRAB members present were all supportive of the ordinance moving forward for City Council approval.

Workplan Considerations The Watershed Protection Ordinance is on the Utilities Department 2026 Workplan. No other workplan items needed to be deprioritized to accommodate drafting the ordinance.

Next Steps for City Council The second reading for Ordinance 8739 is currently scheduled for May 7, 2026 on consent. Council has the option to adopt the proposed ordinance or not. No additional action is necessary if City Council adopts the ordinance on May 7, 2026. After adoption, staff would turn their focus to the established enforcement mechanisms.

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Attachments Attachment A – Proposed Ordinance 8739 Attachment B – Proposed City Manager Rule Attachment C – 2023 Source Water Protection Plan