Title
Status of Community Investment Plan Project Costs
Body
Staff Resource(s):
Mike Davis, Engineering and Property Management
Time: 15 minutes
Explanation
§ The purpose of the presentation is to inform City Council about the impacts of construction costs on the Community Investment Plan (CIP).
§ Real estate acquisition and construction costs have been impacted significantly by the recession and subsequent recovery.
§ During the recession, favorable bid prices and real estate acquisition costs combined with revenues from grants reduced the spending rate of bond funds, causing a need to extend the seven-year authorization for the 2010 bond referendum.
§ Construction and real estate costs are now rising rapidly and may exceed previous cost projections for transportation and building projects included in the CIP.
Future Action
City Council will be requested to authorize the City Manager to apply to the Local Government Commission for a three-year extension of the 2010 General Obligation Bond Authorization for streets and neighborhood improvements and set a public hearing date for August 28, 2017.