(A) Required: In order to ensure that reclamation will proceed in accordance with the approved reclamation plan, the city shall require, as a condition of approval, security which will be released upon satisfactory performance. The applicant may post security in an acceptable form of a surety bond, trust fund, irrevocable letter of credit from an accredited financial institution, trust funds or other method acceptable to the city and the mining and geology board (the "board") as specified in statewide regulations adopted by the board, and which the city reasonably determines are adequate to perform reclamation in accordance with the surface mining operations approved reclamation plan. Financial assurances shall be made payable to the city and the department of conservation, Public Resources Code section 2773.1(a)(4).
(B) Compliance: Financial assurances will be required to ensure compliance with elements of the reclamation plan, including, but not limited to, revegetation and landscaping requirements; restoration of aquatic or wildlife habitat; restoration of water bodies and water quality; slope stability and erosion and drainage control; disposal of hazardous materials; and other mitigation measures. Financial assurances for such elements of the plan shall be monitored by the planning director.
(C) Amount: The amount of the financial assurances shall be based upon the estimated costs of reclamation for the years or phases stipulated in pursuant to 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 mining activities since January 1, 1976, and new lands to be disturbed by surface mining activities in the upcoming year, as provided in subsection (F) of this section. Cost estimates shall be prepared by a licensed engineer and/or other qualified professionals retained by the operator and approved by the planning director. The estimated amount of the financial assurance shall be based on an analysis of physical activities necessary to implement the approved reclamation plan, the unit costs for each of these activities, the number of units of each of these activities, and the actual administrative costs. 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 upon cost estimates that include, but may not be limited to, labor, equipment, materials, mobilization of equipment, administration and reasonable profit by a commercial operator other than the permittee.
(D) Consideration Of Abandonment: In projecting the costs of financial assurances, it shall be assumed without prejudice or insinuation that the surface mining operation could be abandoned by the operator and, consequently, the city or state may need to contract with a third party commercial company for reclamation of the site.
(E) Duration: The financial assurances shall remain in effect for the duration of the surface mining operation and any additional period until reclamation is completed, including any maintenance required, Public Resources Code section 2772.1(a)(2).
(F) Adjustments: The amount of financial assurances required of a surface mining operation for any one year shall be adjusted annually to account for new lands disturbed by surface mining operations, inflation and reclamation of lands accomplished in accordance with the approved reclamation plan, Public Resources Code section 2773.1(a)(3). The financial assurances shall include estimates to cover reclamation for existing conditions and anticipated activities during the upcoming year, excepting that the permittee may not claim credit for reclamation scheduled for completion during the coming year.
(G) Revisions: Revisions to financial assurances shall be submitted to the planning director each year prior to the anniversary date for approval of the financial assurances. The financial assurance shall cover the cost of existing disturbance and anticipated activities for the next calendar year, including any required interim reclamation. If revisions to the financial assurances are not required, the operator shall explain, in writing, why revisions are not required. (Ord. 768-08, 8-19-2008)