Subject:
Title
Consider Adoption of New Cost Basis for Bond Estimates
Body
Presented By: Matthew Huston, Community Development
Recommendation and Review
The City requires that private developers post bonds to assure the timely construction and completion of public infrastructure and erosion and stormwater management practices in accordance with approved plans. The City provides a spreadsheet tool to allow a straightforward and consistent way of determining bond amounts. The last time this spreadsheet’s unit costs were updated was in 2014.Construction costs have increased substantially since the last update, to the point that the unit costs in the spreadsheet are now unrealistic. If a developer were to default on its responsibilities, the City could make claim on the bond and complete construction itself. Bond amounts should provide the funds needed to complete construction. Staff have updated the bond cost estimate spreadsheet tool, increasing the unit cost basis across the board and drawing on several sources to arrive at the new unit costs. Staff present the updated bond cost estimate spreadsheet tool to City Council for adoption.
City Council tabled this item at the July 22, 2025 City Council meeting for staff to research what other localities bond rates are.