(A)   Financial assurances may take the form of surety bonds, irrevocable letters of credit, trust funds, or other forms specified by the State Mining and Geology Board, which the director reasonably determines are adequate to perform reclamation in accordance with the applicant's approved reclamation plan. The financial assurances shall be made payable to the city and the State Department of Conservation.
   (B)   The amount of required financial assurances shall be based upon the following criteria:
      (1)   The estimated costs of reclamation for the years or phases stipulated in the approved reclamation plan, including any maintenance of reclaimed areas as may be required, subject to adjustment for the actual amount required to reclaim lands disturbed by surface mining activities since January 1, 1976, and new lands to be disturbed by surface mining activities in the upcoming year;
      (2)   An analysis of physical activities necessary to implement the approved reclamation plan, the unit costs for these activities, the number of units of each of these activities, and the actual administrative costs of the city and of a third-party contractor retained by the city to implement the reclamation plan;
      (3)   Financial assurances to ensure compliance with revegetation, restoration of water bodies, restoration of aquatic or wildlife habitat, and any other applicable element of the approved reclamation plan shall be based on cost estimates that include, but are not limited to, labor, equipment, materials, mobilization of equipment, administration, and reasonable profit by a third-party contractor retained by the city to implement the reclamation plan; and
      (4)   A contingency factor of ten percent.
(Ord. No. 2579)