Adopt Consent: Front-ender Agreement
Motion 11 · Council Meeting, March 31, 2026
Summary
- The City is being asked to increase the payment limit under an existing utilities front-ender agreement with Pennyfarthing Properties Ash St. North Ltd., related to a development at 4989–5049 Ash Street.
- The original agreement capped the City's reimbursement at $811,200 (78% of estimated construction costs) for sewer and storm pipe separation work; however, actual construction costs came in at $1,553,486 due to general construction cost increases.
- Staff recommend increasing the maximum reimbursement to 78% of actual costs, bringing the new cap to $1,211,720 — an increase of $400,520 over the original amount.
- Payments would be made from the Utilities Development Cost Levy (DCL) reserve fund over a period of up to 10 years, representing approximately 0.4% of annual Utilities DCL revenues; if no DCL revenue is collected in a given year, no payment is made.
- Front-ender agreements allow developers to build required utility infrastructure ahead of the City's own schedule, with the City reimbursing a share of costs from DCL funds collected from future development; staff consider this a lawful and equitable practice.
- The City's technical team reviewed and approved the final construction costs, and the City Manager supports the amendment.
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