RE:Year end disclosure.My guess is the Loftus service work will cost about 21 million given the surety bond rules.
We may see some accounting losses due to this expense if the costs are not capitalized.
From the Mission by laws.
Security Deposit 1.6.3.1 The Security Deposit deposited by the Developer is to ensure the required design, construction, installation and maintenance of the appropriate, legislated Works and Services and Landscaping. The Security Deposit shall be based on: 1.6.3.1.1 The estimated cost of construction as provided by the Developer’s Consulting Engineer and Landscape Architect and accepted by the City; 1.6.3.1.2 Plus (+) 10% contingency to cover possible rising costs and unforeseen situations during the life of the project. 1.6.3.1.3 Plus (+) 10% for Engineering including environmental, testing and subconsultant services; and 1.6.3.1.4 Plus (+) applicable taxes. The Security Deposit shall be in the form of cash, certified cheques, or an automatically renewing and irrevocable Letter of Credit or On-Demand Surety Bond which shall refer to the Municipal Project number and the Developer’s name or company that is noted on the Servicing Agreement. At the discretion of the Engineer, the Security Deposit may be subject to drawdowns if the work has been constructed in accordance with the Subdivision/Development Bylaw herein.