Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: June 4, 2026

Agenda Title Introduction, first reading, and consideration of a motion to order published by title only Ordinance 8752 amending Title 4, “Licenses and Permits,” B.R.C. 1981, allowing for Festival Liquor Licenses and Permits and establishing related application fees; and setting forth related details

Staff Contact • •

Krista Morrison, Chief Financial Officer Alisa Darrow, Licensing Manager

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 8752 amending Title 4,”Licenses and Permits,” B.R.C. 1981, allowing for Festival Liquor Licenses and Permits and establishing related application fees; and setting forth related details

Executive Summary Proposed Ordinance 8752 establishes a local application fee of $150 for liquor festival permits processed within the city, these are event driven and are not renewed. Although liquor festival permits are issued by the State of Colorado, city staff currently is required to conduct administrative review and coordination for these applications, including routing to relevant departments, evaluating operational and public safety considerations, including inspections when necessary, and ensuring compliance with local regulations. At this time, no local fee exists to recover the costs associated with this review process. The proposed fee would allow the city to more accurately align service costs with the applicants receiving the benefit of the review, rather than relying on general fund resources to subsidize these events. Establishing a local fee also creates greater consistency within the city’s broader liquor licensing framework. Changes Proposed: • • • • •

Code cleanup related to terminology of license types to match State Statute Addition of license types currently issued (Fermented malt beverage-wine retailer on and off premises, Special Event Permit) Addition of Festival event liquor permit type Clarification of the term of licenses for events in Section 4-2-7 Addition of the $150.00 fee for Festival liquor permits

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved, staff will bring Proposed Ordinance 8752 back for second reading and a public hearing.

Define and adopt a modified motion

Staff would bring back an ordinance with the proposed changes for council consideration.

Deny the motion or take no action

If this motion is denied, staff will continue to review the Liquor Festival applications as required by State of Colorado Liquor Law without charging a fee. City of Boulder would not be able to exercise local control over issuance of these licenses and permits.

Refer back to staff

If council refers this item back to staff, staff will need specific direction from council on how to proceed so that this item continues to move forward.

Alignment with City Plans and City Council History Sustainability, Equity, and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area

The proposed festival liquor permit application fee supports an equitable and sustainable licensing process by aligning the cost of service with the administrative review already performed by the city on behalf of the State of Colorado. Currently, staff time and public resources are used to process these applications without cost recovery, which can create an imbalance in how limited municipal resources are allocated across programs and services. Establishing a $150 fee helps ensure that applicants contribute proportionally to the direct cost of the regulatory review associated with their event. Citywide Strategic Plan This proposal supports the city’s commitment to responsible governance and sustainable service delivery by ensuring regulatory services are administered efficiently, transparently, and equitably. Staff Notes None

Alignment with Additional City Plans This proposal aligns with the Finance Work Plan by supporting cost recovery, operational sustainability, and equitable allocation of city resources. Establishing a local fee for liquor festival permit review helps ensure that the cost of providing regulatory and administrative services is borne by the applicants benefiting from those services rather than subsidized by the general taxpayer. The fee also promotes consistent financial practices across licensing programs and supports long-term service delivery by aligning revenues with actual staff workload and processing costs.

City Council History This topic has not been brought before council previously.

Analysis Liquor festival permits have been issued through the State of Colorado since 2018; however, the city is currently required to perform local administrative review and coordination for these applications and does not collect a local processing fee. Staff time associated with these permits includes application intake, interdepartmental routing, review of operational and public safety considerations, communication with applicants, and coordination with the State Licensing Authority. As the number and complexity of special events continues to evolve, these reviews create a measurable operational impact on staff resources. The proposed fee is intended to establish a reasonable level of cost recovery for services already being provided by the city. Implementing a local fee would create greater consistency across the city’s liquor licensing framework, where other application types include fees associated with administrative review and processing. The proposal also supports equitable allocation of city resources by ensuring that private event applicants contribute toward the costs generated by their applications rather than relying on general fund support. From an operational perspective, the addition of a festival permit fee improves transparency and helps align regulatory services with actual service delivery costs. The proposed fee amount was developed to balance cost recovery objectives while remaining comparable to fees commonly charged by other Colorado municipalities for similar local review processes.

Equity Analysis The proposed festival liquor permit application fee supports the city’s local regulatory authority and its responsibility to protect the health, safety, and welfare of the community. Although these permits are issued by the State of Colorado, the city conducts local review and oversight to evaluate when and where events involving alcohol service occur, assess operational impacts, and ensure compliance with applicable local regulations and public safety considerations. This review helps the city coordinate with public safety partners, evaluate neighborhood impacts, and support responsible event operations. The proposed $150 fee creates a more equitable and sustainable approach to cost recovery for services already being provided by the city. Currently, these applications

require staff review, coordination, and administrative oversight without a dedicated local fee to offset associated costs. Establishing a fee helps ensure that limited public resources are used responsibly and that the cost of administering these event reviews is shared by the applicants benefiting from the process rather than being borne entirely by the broader community. The fee is intended to support oversight and administration, not to create a barrier to community events. Staff will continue to provide accessible application materials, guidance, and customer service to support applicants through the process. By establishing a transparent local fee structure, the city can continue providing effective oversight of festival liquor permits while supporting safe, well-managed events that contribute positively to the community.

Fiscal Note Estimated Fiscal Impact Narrative Current Year Estimated Fiscal Impact Fund(s): General Fund Department(s): Finance Program(s): 1278PG Finance Liquor Licenses

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance

$43.5M

N/A

$43.5M

Total Forecasted Revenue

$198.8M

$3,000

$198.8M

Total Estimated Expenses

$194.5M

$0

$194.5M

Ending Fund Balance(s) After Reserves

$1.9M

$0

$1.9M

FTE

801.0

0

801.0

Item

Three-Year Estimated Fiscal Impact Staff has been receiving approximately 25 applications per year for Liquor Festival Permits, that number is expected to increase based on upcoming larger city-wide festivals coming to Boulder. Staff is not able to estimate the number of potential applications that might come with those.

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$3,000

$4,500

$5,000

Total Estimated Expenses

$0

$0

$0

Net Estimated Impact

$3,000

$4,500

$5,000

Climate, Resilience, and Sustainability Considerations This policy change does not have significant climate or sustainability impacts.

Community Engagement This policy change was discussed at the 2025 Beverage Licensing Authority Retreat.

Workplan Considerations This policy change is not anticipated to materially impact city staff existing workplans.

Next Steps for City Council Second reading and public hearing is scheduled for June 18, 2026.

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Attachments A – Proposed Ordinance 8752