City Council

CC 6. Adoption of a Resolution Authorizing the Execution of an Amended Surety Bond to Meet the\nFinancial Security Requirement for Lancaster Energy and Rescinding Resolution No. 23-22\nRecommendation(s):\n1. Adopt Resolution No. ______, authorizing the execution of an amended Surety Bond to\nmeet the Financial Security Requirement for Lancaster Energy and rescinding Resolution No.\n23-22.\n2. Authorize the City Manager, or his designee, to execute this and subsequent amended\nSurety Bond documents to accommodate increases and decreases associated with the annual\nfee of the Surety Bond for an amount not to exceed $100,000 annually.\nEffective September 1, 2025, the FSR for LE will increase from $147,000.00 to\n$4,103,705.00. Therefore, to satisfy the increase to LE’s FSR obligation, the annual cost\nassociated with maintaining LE’s surety bond will increase to $41,037.05. Staff is requesting\na not-to-exceed amount of $100,000 annually to accommodate any future changes to FSR\nrequirements.