(A) Requirement for security. Prior to issuance of a grading permit, the security required by this section shall be posted with the city. The security shall guarantee, and the city shall have the right to draw upon such security to satisfy, the following:
(1) Compliance with all applicable provisions of this chapter and the code, state and federal law and other applicable ordinances, rules and regulations of the city;
(2) Compliance with any and all terms and conditions of the grading permit and all approved plans;
(3) Completion of the work authorized under the grading permit and the erosion control system(s) to the satisfaction of the City Engineer and in accordance with the approved plans;
(4) Completion of all emergency and routine maintenance and repair of the erosion control system(s) to insure the continuous integrity of the system(s) to the satisfaction of the City Engineer and as may otherwise be required by this chapter;
(5) Restoration and repair of public streets or other public property adversely impacted or damaged or the mitigation of any hazardous condition created by any activity of the permittee or agent of the permittee or any erosion from any site associated with the grading work.
(B) Amount and form of security. The amount of the security shall be equal to 30% of the total estimated cost of the work authorized by the grading permit, plus 100% of the total estimated cost of the erosion control system(s) required by the Erosion Control Plan. The permittee's estimate of the cost shall be based on the established unit costs available from the city and shall be subject to the review and approval by the City Engineer. At least 25% of the required security shall be in cash and shall be deposited with the City Engineer. The remainder of the erosion control security shall be subject to the approval of the City Engineer and City Attorney and consist of one or more of the following:
(1) Cash deposit;
(2) Surety bond;
(3) Certificate of deposit;
(4) Letter of credit, in city format, from one or more local financial institution(s) subject to regulation by the state or federal government.
(C) Failure to maintain security. If a permittee fails to maintain the security required by this section, the City Engineer may revoke the permittee's grading permit without prior notice to the permittee. Any such revocation shall be in writing.
(D) Replenishment of cash deposit. The City Engineer shall notify the permittee of any withdrawal from the permittee's cash deposit. If the costs exceed the balance of the permittee's funds on deposit, the City Engineer shall cause an invoice to be sent to the permittee demanding payment of the amount by which the costs exceed the permittee's deposit. The permittee shall, within ten days of receipt of such invoice, deposit with the City Engineer that amount of cash necessary to bring the permittee's deposit up to its original balance. If the permittee fails to pay such amount in full within 30 days from the date of the invoice, the permittee's grading permit shall be automatically revoked. Renewal of the grading permit shall not be completed until the invoice is paid in full. No final grading inspection shall be completed until the permittee has fully satisfied all monetary obligations to the city imposed pursuant to this division (D). Additionally, no further construction permits, including, but not limited to, building permits or occupancy permits, shall be issued until such monetary obligations are fully satisfied.
(E) Release of security.
(1) On June 1 of each year, or at the end of the actual rainy season (as determined by the City Engineer), whichever occurs later in time, the City Engineer may release the amount of security posted to guarantee erosion control system(s), upon receipt of a written request for such release by the permittee.
(2) The City Engineer may require the security posted for permittee's erosion control system(s) to remain on deposit with the city throughout the grading of the project and not be released until completion of the landscaping improvements for the associated development project if the City Engineer determines that due to the nature, configuration or location of the development project it is in the best interest of the city to retain the erosion control security until the landscaping improvements are complete.
(3) Security posted to guarantee all work authorized under the grading permit, other than the erosion control system(s), shall be released upon inspection and approval of the work by the City Engineer, except where the work is performed in conjunction with a subdivision or parcel map approval, in which case the security shall be released upon receipt of the warranty surety and acceptance of the final subdivision or parcel map by the City Council.
(4) The City Engineer shall not release a permittee's security if the permittee has an outstanding monetary obligation to the city or if cleanup or repair of public streets or other public property for which the permittee is responsible has not been completed to the satisfaction of the City Engineer.
(Ord. 3378 § 5 (part), 2023; Ord. 2806 § 5, 2006; Ord. 2568 § 1, 2002.)