Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: February 12, 2026 Agenda Title Consideration of a motion to authorize the city manager to enter into a revocable license agreement with the University of Colorado, generally in the form attached to the staff memorandum, to allow the construction of underground water chiller utility lines within Folsom Street as part of the utility extensions to the north of Boulder Creek campus

Staff Contact • • • •

Nuria Rivera-Vandermyde, City Manager, CMO Mark Woulf, Assistant City Manager, CMO Brad Mueller, Planning & Development Services Director, Planning & Development Services Mark Garcia, Civil Engineering Sr. Manager, Planning & Development Services

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to authorize the city manager to enter into a revocable license agreement with the University of Colorado, generally in the form as attached to the staff memorandum, to allow the construction of underground water chiller utility lines within Folsom Street as part of the utility extensions to the north of Boulder Creek campus.

Executive Summary The North Boulder Creek Utilities Expansion Project (NBC Utilities) is an underground infrastructure project by CU to provide services to the University of Colorado Boulder (CU Boulder) campus facilities in the North Boulder Creek (NBC) neighborhood. This project would enable coordinated infrastructure improvements that advance CU’s longterm sustainability and resilience goals by transitioning away from steam and fossil fuels as heating sources while the city will maintain its ability to manage and protect public right-of-way assets. The full scope of the project includes heating hot water (HHW), chilled water (CHW), and medium voltage (MV) electrical power distribution. The CHW portion of the project is proposed to be partially located within the City of Boulder rightof-way (ROW) to connect the North of Boulder Creek Neighborhood to the main campus chilled water distribution system. All three services will be provided via Main Campus feeds, creating resiliency for future buildings within this area of campus. The CHW lines will not interfere with the city’s transportation uses of Folsom Street. Attachment A and B show overall site plans and detailed cross sections. Staff from the City Attorney’s Office, Transportation & Mobility, Utilities, and Planning & Development Services has worked with CU staff to determine the best way to allow these utility lines within city right-of-way and the terms of the agreement. A revocable license agreement has been determined to meet the needs of both the city and the university. This agreement is included in Attachment B and contains the proposed licensing terms for the utility within city right-of-way and a legal description of the proposed footprint. Pursuant to Section 2-2-8, "Conveyance of City Real Property Interest," B.R.C.1981, City Council approval is required to grant any interest in any city real property for a term of three years or more. Staff requests council approval authorizing the city manager to enter into this revocable license agreement. If council approves the agreement, work on the underground chiller lines within City right-of-way on Folsom Street is anticipated to begin as soon as it’s approved.

Council Action Options Option

Outcome

Approve motion language as drafted

This will authorize the city manager to enter into a revocable license agreement with the University of Colorado.

Define and adopt a modified motion

As this item is presented on the consent agenda, staff is not recommending any motion that would modify

the proposed license agreement. If council elects not to approve the motion, the agreement would not be executed, and the portion of the North Boulder Creek Utilities Expansion Project within city right-of-way could not proceed as proposed. Deny the motion or take no action

If council elects not to approve the motion, the agreement would not be executed, and the portion of the North Boulder Creek Utilities Expansion Project within city right-of-way could not proceed as proposed.

Refer back to staff

As this item is presented on the consent agenda, staff is not recommending additional alternatives. If council elects not to approve the motion, the agreement would not be executed, and the portion of the North Boulder Creek Utilities Expansion Project within city right-ofway could not proceed as proposed.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area The existing utility infrastructure at NBC is a mix of CU campus, City of Boulder, and Xcel Energy utilities. As the university redevelops this neighborhood, utility improvements will be necessary to support new buildings, such as Residence One, and create a linked and resilient infrastructure network that ties to main campus and future sustainability upgrades to campus utility plants, transitioning away from campus’ reliance on steam and fossil fuels as a heating source. This item supports the city’s Sustainability, Equity, and Resilience (SER) Framework by enabling coordinated infrastructure improvements that advance long-term sustainability and resilience goals while maintaining the city’s ability to manage and protect public right-of-way assets. The proposed revocable license ensures the city retains control over its right-of-way while allowing critical utility infrastructure that supports a major institutional partner and surrounding community. The proposed agreement supports resilient infrastructure by allowing underground utility systems that improve service reliability and redundancy. It also supports climate action goals by facilitating the university’s transition away from fossil fuel–based heating systems toward more efficient, centralized campus utility systems.

Citywide Strategic Plan The proposed action aligns with the Citywide Strategic Plan by: •

Supporting a safe, well-maintained, and resilient infrastructure system through coordinated planning and use of public right-of-way.

•

Advancing climate and sustainability objectives by enabling infrastructure that supports reduced greenhouse gas emissions over time.

•

Maintaining responsible stewardship of city assets through the use of a revocable license rather than a permanent property interest.

Staff Notes The agreement has been reviewed and coordinated across relevant city departments, including the City Attorney’s Office, Transportation & Mobility, Utilities, and Planning & Development Services, to ensure consistency with city standards and protection of city interests. The revocable nature of the license provides flexibility should future city needs require modification or removal of the infrastructure.

Alignment with Additional City Plans This action is consistent with applicable transportation, utilities, and right-of-way management policies that allow underground utilities within city streets when they do not interfere with transportation functions and are governed by clear legal agreements. The project has been reviewed to confirm compatibility with existing and planned uses of Folsom Street.

City Council History City Council has previously authorized agreements and licenses allowing utilities within city right-of-way for public agencies, educational institutions, and utilities when such uses support community needs and do not compromise city operations or long-term planning objectives. This item is consistent with prior council actions related to utility coordination and infrastructure improvements.

Analysis The use of a revocable license agreement provides an appropriate balance between accommodating essential utility infrastructure and preserving the city’s authority over its right-of-way. The proposed chilled water lines are underground, do not conflict with transportation operations, and are designed to meet applicable city standards. The agreement clearly defines responsibilities related to construction, maintenance, and potential relocation, minimizing risk to the city.

Equity Analysis While the infrastructure directly serves university facilities, the project supports broader community goals related to sustainability, climate resilience, and infrastructure reliability. There are no anticipated disproportionate impacts to historically marginalized or underserved populations.

Fiscal Note Estimated Fiscal Impact Narrative There is no direct fiscal impact to the city associated with approval of this item. All costs related to design, construction, operation, maintenance, and any future relocation or removal of the utility lines will be borne by the University of Colorado, as outlined in the revocable license agreement. Standard permitting fees will apply for the work within City right-of-way or public easement.

Current Year Estimated Fiscal Impact Fund(s): 2120FD Department(s): Planning & Development Services Program(s):

Item Beginning Fund Balance Total Forecasted Revenue Total Estimated Expenses

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

$18,200,885

$0

$0

$15,179,491

$0

$0

$17,735,173

$0

$0

Ending Fund Balance(s) After Reserves FTE

$12,646,701

$0

$0

122.65

0

0

Three-Year Estimated Fiscal Impact

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue Total Estimated Expenses Net Estimated Impact

$0

$0

$0

$0

$0

$0

$0

$0

$0

Climate, Resilience, and Sustainability Considerations The project supports the city’s climate goals by enabling infrastructure that contributes to reduced reliance on fossil fuels and increased efficiency in campus energy systems. By facilitating chilled water connections to centralized systems, the agreement helps support long-term greenhouse gas reduction efforts.

Community Engagement Community engagement was not required for this action, as it is an administrative agreement related to underground utilities within existing city right-of-way and does not change land use, transportation operations, or public access.

Workplan Considerations Approval of this item is consistent with current workplan priorities related to infrastructure coordination, right-of-way management, and interagency collaboration. Staff time required to implement the agreement is within existing resources.

Next Steps for City Council If council approves the motion, the city manager will execute the revocable license agreement. Construction of the chilled water lines within the Folsom Street right-of-way may then proceed in coordination with city staff and subject to all applicable permits and inspections.

Accessibility Statement The City of Boulder is committed to digital accessibility. Some content may not be fully accessible due to technical limitations or issues. For alternate formats or accommodations, please visit Accessibility | City of Boulder or contact accessibility@bouldercolorado.gov.

Attachments Attachment A – Site Plans Attachment B – Agreement with Exhibits