(A) Amount. At the discretion of the city, the city may require a financial security from the applicant in an amount sufficient to cover the entirety of the estimated costs of permitted and remedial work based on the final design as established in a set financial security schedule determined by the city.
(B) Release. The financial security shall not be released until all permitted and remedial work is completed.
(C) Use by city. The financial security may be used by the city to complete work not completed by the applicant.
(D) Form of security. The form of the financial security shall be 1 or a combination of the following to be determined by the city:
(1) Cash deposit. A financial security for erosion and sediment control, as determined by the city, shall be by cash deposit to the city. The cash will be held by the city in a separate account.
(2) Security deposit. Deposit, either with the city, a responsible escrow agent, or trust company, at the option of the city, either:
(a) An irrevocable letter of credit, negotiable bonds of the kind approved for securing deposits of public money, or other instruments of credit from 1 or more financial institutions, subject to regulation by the state and federal government wherein said financial institution pledges funds are on deposit and guaranteed for payment;
(b) Cash in U.S. currency; or
(c) Other forms and securities (e.g., disbursing agreement) as approved by the city.
(E) City indemnity. This financial security shall hold the city free and harmless from all suits or claims for damages resulting from the negligent grading, removal, placement or storage of rock, sand, gravel, soil or other like material within the city.
(F) Maintaining the financial security. If at any time during the course of the work the balance of the financial security falls below 50% of the total required deposit, the applicant shall make another deposit in the amount necessary to restore the cash deposit to the required amount. If the applicant does not bring the financial security back up to the required amount within 7 days after notification by the city that the amount has fallen below 50% of the required amount the city may:
(1) Withhold inspections. Withhold the scheduling of inspections and/or the issuance of a certificate of occupancy; or
(2) Revoke permits. Revoke any permit issued by the city to the applicant for the site in question or any other of the applicant's sites within the city's jurisdiction.
(G) Action against the financial security. The city may access the financial security for remediation actions if any of the conditions listed below exist. The city shall use the financial security to pay for remedial work undertaken by the city, or a private contractor under contract with the city, or to reimburse the city for all costs incurred in the process of remedial work including, but not limited to, staff time and attorney's fees.
(1) Abandonment. The applicant ceases land disturbing activities and/or filling and abandons the work site prior to completion of the grading plan.
(2) Failure to implement the SWPPP or ESC plan. The applicant fails to conform to the grading plan and/or the SWPPP as approved by the city.
(3) Failure to perform. The BMPs utilized on the project fail within 1 year of installation.
(4) Failure to reimburse city. The applicant fails to reimburse the city for corrective action taken.
(H) Proportional reduction of the financial security. When more than 1/3 of the applicant's maximum exposed soil area achieves final stabilization, the city can reduce the total required amount of the financial security by 1/3. When more than 2/3 of the applicant's maximum exposed soil area achieves final stabilization, the city can reduce the total required amount of the financial security to 2/3 of the initial amount. This reduction in financial security will be determined by the city.
(I) Returning the financial security. The security deposited with the city for faithful performance of the SWPPP or the ESC plan and any related remedial work shall be released 1 full year after the completion of the installation of all stormwater pollution control measures, including vegetation establishment, as shown on the SWPPP or ESC plan.
(J) Emergency action. If circumstances exist such that noncompliance with this chapter poses an immediate danger to the public health, safety and welfare, as determined by the city, the city may take emergency preventative action. The city shall also take every reasonable action possible to contact and direct the applicant to take any necessary action. Any cost to the city for emergency action may be recovered from the applicant's financial security.
(Ord. 7553, passed 3-15-2016)