(a) Bond required. A grading permit or stockpiling permit shall not be issued for any cut, fill, or stockpiling involving quantities more than 500 cubic yards or for excavations or fills over 15 feet in vertical height, or for work being done in increments of 500 cubic yards or less, which is part of a larger development, unless the permittee shall first file a bond for the benefit of the city; provided that if the proposed grading or stockpiling is to be performed under an approved subdivision final map and a subdivision agreement, or bond or other security has been approved and accepted by the city under the subdivision rules of the city, or a contractor’s performance bond accepted by the city, then the chief engineer shall not require a bond for grading or stockpiling. A copy of the approved and accepted subdivision bond or other security shall be presented as evidence by the applicant for a grading or stockpiling permit. At the option of the applicant, the applicant may either file a bond guaranteed by a surety company duly authorized to transact business within the State of Hawaii, or the applicant may deposit cash or letter of credit in lieu of a bond. No interest shall be paid by the city on such cash deposit. The provisions herein relating to a surety bond shall be equally applicable to a cash deposit pledged as a bond.
(b) Amount of bond. The amount of the bond shall be based upon the number of cubic yards of material in either excavation, fill, or stockpiling, whichever is the greatest volume. The amount of the bond shall be computed as set forth in the following schedule:
Volume of Material | Permit Bond |
10,000 cubic yards or less | $8 per cubic yard |
Over 10,000 to 100,000 cubic yards | $80,000 plus $3 per cubic yard for each additional cubic yard in excess of 10,000 |
Over 100,000 cubic yards | $350,000 plus $1 per cubic yard in excess of 100,000 |
At the option of the applicant, the applicant may file a bond in an amount equal to the cost of all work and services required to complete all of the work under the grading or stockpiling permit as approved by the chief engineer. Cost estimates prepared by the permittee shall be subject to approval of the chief engineer to determine the exact amount of the bond.
(c) Conditions. The bond shall be conditioned to be payable to the chief engineer, and upon failure of the permittee to complete all of the required work within the specified time, the chief engineer shall collect the moneys from the bond and complete the necessary work to control soil erosion and sedimentation or all unfinished work required by the permit. The parties executing the bond shall be firmly bound to pay for this entire cost.
(d) Additional conditions. Each bond shall provide that the surety shall be held and firmly bound unto the city for so long as the following conditions have not been met:
(1) The permittee shall comply with all of the terms and conditions of the permit to the satisfaction of the chief engineer;
(2) The permittee shall complete all of the work authorized under the permit within the time limit specified in the permit; and
(3) The surety company shall not terminate or cancel the bond until notified in writing by the chief engineer of any termination or cancellation.
(e) Period and termination of bond. The term of each bond shall begin upon the date of issuance of the permit and shall remain in effect for a period of one year after the date of completion of the work to the satisfaction of the chief engineer. Such completion shall be evidenced by a certificate signed by the chief engineer. In the event of failure to complete the work or failure to comply with all of the conditions and terms of the permit, the chief engineer may order the work to be completed as required by the permit and to the satisfaction of the chief engineer. The surety executing such bond or the cash depositor, shall continue to be firmly bound under a continuing obligation for the payment of all necessary costs and expenses that may be incurred or expended by the city, in causing any and all of such required work to be done, and the surety and the permittee assents to the completion of the work even though it is performed after the time allowed in the permit. Upon completion of such work by the city, the bond shall be terminated. In the case of a cash deposit, such a deposit or any unused portion thereof not required to complete the work authorized by the permit shall be refunded to the permittee.
(Sec. 23-2.8, R.O. 1978 (1983 Ed.)) (1990 Code, Ch. 14, Art. 14, § 14-14.8) (Am. Ord. 96-34)