§ 59.1010. Method For Calculating Cost Escalation.

This section provides the method to estimate growth in costs, for purposes of this Part 10, Chapter 59, through the computation of a ten-year average of the actual cost growth rates. This will provide a growth rate that avoids overcompensating for major fluctuations in costs that have occurred due to short-term material shortages.

Cost _n = Cost _o × (1 + Cost growth _{10 yr} ) ⁿ

Where:

Cost _n = The cost of the improvements in year n;

Cost _o = The cost of the improvement in the current year;

Cost growth _{10 yr} = The growth rate of costs over the last ten years;

n = The number of years until the improvement is constructed.

Cost escalation factors of the segment for which a proportionate fair-share contribution is calculated may be negotiated at the City's sole discretion and generally consistent with the terms of this section, at the time the developer and the City enter into the concurrency resolution process and shall be stipulated in the Proportionate Fair-Share agreement(s).

(Ord. of 10-29-2007, § 2, Doc. #0710291002)