§ 29-25-108 — Board of directors - duties

(1) (a) Except as otherwise provided
in this subsection (1), if the governing body of a single local government creates the
district, such governing body shall constitute ex officio the board of directors of the
district. In such event, the presiding officer of the governing body shall be ex officio
the presiding officer of the board, the clerk of the governing body shall be ex officio
the secretary of the board, and the treasurer of the local government shall be ex
officio the treasurer of the board. A quorum of the governing body shall constitute a
quorum of the board.

(b) The governing body of the local government may, at any time, provide by
resolution or ordinance for the creation of a board of directors of the district
consisting of not fewer than five members. Each member shall be an elector of the
district appointed by the governing body or, if designated by the governing body, by
the mayor of a city and county; except that, if possible, no more than one-half of the
members of the board may be affiliated with one owner or lessee of taxable real or
personal property in the district. Each member shall serve at the pleasure of the
local government. Within thirty days after a vacancy occurs, a successor shall be
appointed in the same manner as the original appointment. Within thirty days after
a member's appointment, except for good cause shown, each member shall appear
before an officer authorized to administer oaths and take an oath that such member
will faithfully perform the duties of office as required by law and will support the
constitution of the United States, the state constitution, and laws made pursuant
thereto. A majority of the members shall constitute a quorum of the board. The
board shall elect one of its members as presiding officer, one of its members as
secretary, and one of its members as treasurer. The office of both secretary and
treasurer may be filled by one person.

(c) If more than one-half of the property located within the district is also
located within a county revitalization area, an urban renewal area, a downtown
development authority, or a general improvement district, the governing body may,
at any time, provide by ordinance that the governing body of the county
revitalization authority, urban renewal authority, downtown development authority,
or general improvement district shall constitute ex officio the board of directors of
the district. In such event, the officers of such entity are ex officio the officers of
the board. A quorum of the board of directors of such entity constitutes a quorum of
the board.

(d) If the petition initiating the organization of the district or any subsequent
petition signed by persons who own real or personal property in the service area of
the proposed district having a valuation for assessment of not less than fifty
percent, and who own at least fifty percent of the acreage in the proposed district
so specifies, the members of the board of the district shall be elected by the
electors of the district. If such a petition is approved, the terms of members of the
board shall be specified by resolution or ordinance of the governing body. The initial
election for members of the board shall be held within sixty days after approval of
the resolution or ordinance organizing the district or the filing of any subsequent
petition. All subsequent elections for members of the board shall be on the date
specified in the resolution or ordinance. The number of directors, the quorum
requirements, and the oaths of office shall be the same as those provided for
directors of special districts pursuant to article 1 of title 32, C.R.S. Any vacancy on
the board shall be filled in the same manner as provided in paragraph (b) of this
subsection (1). Until the members of the board are elected and qualified, the
governing body shall serve as the board of the district. Elections pursuant to this
paragraph (d) shall be held in accordance with the provisions specified in the
resolution or ordinance providing for the election of directors. The cost of any
election held pursuant to this paragraph (d) shall be borne by the district.

(e) The governing body of the local government may remove a member of the
board of a district or the entire board thereof for inefficiency or neglect of duty or
misconduct in office, but only after the member or the board has been given a copy
of the charges made by the governing body against such member or such board and
has had an opportunity to be heard in person or by counsel before the governing
body. In the event of the removal of any member of the board or of the board
pursuant to this paragraph (e), the governing body shall file in the office of the clerk
of the local government a record of the proceedings, together with the charges
made against the member or the board and the findings thereon.

(f) Ten percent of the electors of a district may petition the governing body
for the removal of a member of the board of the district or of the entire board
thereof for inefficiency or neglect of duty or misconduct in office, and the
governing body may remove the member or the board, but only after the member or
the board has been given a copy of the charges made against such member or such
board and has had an opportunity to be heard in person or by counsel before the
governing body. In the event of the removal of the member or of the board pursuant
to this paragraph (f), the governing body shall file in the office of the clerk of local
government a record of the proceedings, together with the charges made against
the member or the board and the findings thereon.

(2) The board shall adopt a seal. The secretary shall keep in a visual text
format that may be transmitted electronically a record of all proceedings, minutes
of meetings, certificates, contracts, and corporate acts of the board, which shall be
open to inspection by the electors of the district and other interested parties. The
treasurer shall keep permanent records containing accurate accounts of all money
received by and disbursed for and on behalf of the district and shall make such
annual or other reports to the local government as it may require. All budgets and
financial records of the district, whether governed by a separate board or by the
governing body of the local government, shall be kept in compliance with parts 1
and 5 of article 1 of this title.

(3) Each member of the board of a district or the governing body or other
entity acting ex officio as the board of a district is required to disclose any potential
conflicting interest in any transaction of the district pursuant to section 18-8-308,
C.R.S. A board member with a potential conflicting interest in a district transaction
may not participate in the considerations of and vote on the transaction, may not
attempt to influence any of the contracting parties, and may not act directly or
indirectly for the board in the inspection, operation, administration, or performance
of any contract related to the transaction. Ownership, in and of itself, by a board
member of property within the district shall not be considered a potential
conflicting interest.

(4) When the governing body of a local government establishes a board of
directors pursuant to paragraph (b), (c), or (d) of subsection (1) of this section, it may
set such conditions, limitations, procedures, duties, and powers under which the
board shall conduct its business. Such conditions and limitations may be in the form
of a binding contract on both the governing body and the board and may include
provisions requiring the dissolution of the board after a specified length of time, at
which time the governing body of the municipality shall assume all powers and
duties of the district, including the payment of any outstanding indebtedness.

Legislative History

Source: L. 98: Entire article added, p. 1084, � 1, effective September 1. L. 2009: (2) amended, (HB 09-1118), ch. 130, p. 561, � 4, effective August 5. L. 2024: (1)(c) amended, (HB 24-1172), ch. 387, p. 2680, � 10, effective August 7.