(A) Security to be posted.
(1) No grading permit shall be issued for grading involving the movement of more than 50 cubic yards of soil unless the applicant shall first post a security with the city comprised of a cash deposit or a combination cash deposit and a corporate surety bond of a surety authorized to do business in the State of California, instrument of credit or other security all as satisfactory to the City Attorney, pledging the performance of the work, installation of required structures, drains, erosion control, landscaping, irrigation, and the like and agreeing such funds are trust funds for the purposes of satisfying the cost of correcting any deficiency or any hazard or injury created by the work or its lack of maintenance. An irrevocable standby letter of credit issued by a financial institution chartered by the State of California or federal government may be posted in lieu of the surety bond, instrument of credit or other security. If the Director of Public Works determines that the size, complexity, and scope of the work do not justify the full amount of the security, he or she may waive all or part of the amount to the extent that there is no hazard or danger.
(2) The total security shall be in the form approved by the City Attorney. The total amount of the security shall be equal to 30% of the estimated cost of the grading work authorized by the permit, plus an additional sum equal to 100% of the estimated cost of the construction of retaining walls and sprinkler irrigation systems, landscaping and drainage structures or facilities (including standard terrace drains, slope planting, erosion control facilities, and similar facilities) authorized by the permit. The estimated cost of the work shall be determined by the Director of Public Works after reviewing the civil engineer's estimates.
(3) The cash deposit shall be equal to 30% of the total security required for projects where the total security required is $75,000 or less, plus an additional 5% of the total security required when the security is over $75,000. In no instance shall the cash deposit be less than $1,000. This cash deposit shall be used to satisfy the cost of correcting any deficiency, hazard, or injury created by the work in violation of the terms and conditions of the grading permit and in violation of the provisions of this code or any other applicable law or ordinance; or for the maintenance cleanup or repair of any public or private street or easement, or for the maintenance, cleanup or repair of any maintenance, upkeep, or installation of debris basins, erosion control devices, etc. Use of the cash deposit or a portion thereof shall in no way limit or release the obligation of the permittee or surety to satisfy the cost of correcting any deficiency, hazard or injury created by the work or to maintain same in a safe condition. If the amount of the cash deposit is insufficient to satisfy the cost in full, the surety shall be liable to satisfy the remainder of the cost in excess of the cash deposit to the extent that the remainder does not exceed the full penalty amount of the bond. In addition, if suit is brought upon the bond by the city and judgment is revoked, the surety shall pay all cost incurred by the city in such suit, including a reasonable attorney's fee to be fixed by the court.
(B) Every bond and instrument of credit shall include and every cash deposit and letter of credit shall be made on the conditions that the permittee shall:
(1) Comply with all the provisions of this code, applicable laws and ordinances;
(2) Comply with all the terms and conditions of the grading permit to the satisfaction of the Director of Public Works;
(3) Complete all of the work contemplated under the grading permit within the time limit specified in the grading permit, or if no time limit is so specified, the time limit specified in this chapter. The Director of Public Works may, for sufficient cause, extend the time specified in the permit, but no such extension shall release the owner or the surety on the bond or person issuing the instrument of credit.
(C) Each bond shall remain in effect until the completion of the work to the satisfaction of the Director of Public Works.
(D) In the event of failure to complete the work or failure to comply with all of the conditions and terms of the grading permit, the Director of Public Works may order such work as in his or her opinion is necessary to correct any deficiencies or eliminate any dangerous condition and leave the site in a safe condition or may order the work authorized by the permit to be completed to a safe and stable condition to this satisfaction. The permittee and the surety executing such bond or person issuing the instrument of credit, letter of credit or making the cash deposit 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 such work to be done. In the case of a cash deposit, any unused portion thereof shall be refunded to the permittee.
(E) Posted security for a grading permit issued pursuant to this chapter shall only be released to owner in conformance with § 162.670.
(Ord. 1449, passed 10-19-05)