City Council

CC 6. Adoption of a Resolution Authorizing the Execution of an Amended Surety Bond to Meet the Financial Security Requirement for Lancaster Energy and Rescinding Resolution No. 23-22 Recommendation(s): 1. Adopt Resolution No. ______, authorizing the execution of an amended Surety Bond to meet the Financial Security Requirement for Lancaster Energy and rescinding Resolution No. 23-22. 2. Authorize the City Manager, or his designee, to execute this and subsequent amended Surety Bond documents to accommodate increases and decreases associated with the annual fee of the Surety Bond for an amount not to exceed $100,000 annually. Effective September 1, 2025, the FSR for LE will increase from $147,000.00 to $4,103,705.00. Therefore, to satisfy the increase to LE’s FSR obligation, the annual cost associated with maintaining LE’s surety bond will increase to $41,037.05. Staff is requesting a not-to-exceed amount of $100,000 annually to accommodate any future changes to FSR requirements.