A. 
The City Engineer is not authorized to issue a grading permit unless the applicant for the grading permit posts security with the City comprised of a cash deposit, surety bond, or a combination of cash deposit and corporate surety bond. An instrument of credit or other security satisfactory to the City Attorney, which pledges the performance of the work, may be submitted in lieu of the surety bond. Surety bonds and other instruments of credit must be issued by an entity authorized to do business in the State of California. An irrevocable standby letter of credit issued by a financial institution subject to regulation by the State or Federal government may be posted in lieu of the surety bond, instrument of credit or other security.
B. 
The security required by this section must insure installation of required structures, drains, landscaping, irrigation and other improvements shown on the grading plans. Such funds are trust funds for the purposes of satisfying the cost of correcting any deficiency, hazard or injury created by the work or lack of maintenance thereof.
C. 
The security required by this section must be in the form approved by the City Attorney. The total amount of the security must 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 for the construction of drainage structures or facilities, including standard terrace drains, slope planting, irrigation system, erosion control devices, retaining walls and similar facilities authorized by the grading permit.
D. 
The City Engineer will estimate the cost of the work after reviewing the civil engineer's estimates. If the City Engineer determines that the size, complexity and scope of the work does not justify the full amount of the security, the City Engineer may waive all or part of the amount to the extent that there is no hazard or danger. If the scope of work increases, or new conditions are discovered after grading commences, the City Engineer may increase the amount of security required.
(Ord. 564 § 3, 2019)
A cash deposit provided as security required by this chapter must meet the following requirements:
A. 
Be equal to 20% of the calculated security, as approved by the City Engineer. Interest will not be paid on cash deposits;
B. 
Not be less than $1,000.00 or more than $20,000.00. In instances where 20% of the appraised calculated security exceeds $20,000.00, that remaining portion of the security in excess of $20,000.00 must be combined with the remaining 80% of the approved security in the form of a corporate surety bond, or other security authorized by Section 11.40.400;
C. 
Be used to satisfy all of the following:
1. 
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 chapter or any other applicable law or ordinance,
2. 
For maintenance, cleanup or repair of any public or private street or easement, or for the maintenance, upkeep or installation of debris basins, erosion control devices, etc.,
3. 
Use of the cash deposit or a portion thereof does not 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 the same in safe condition. If the amount of the cash deposit is insufficient to satisfy the cost in full, the surety is 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 surety by the City and judgment is recovered, the surety must pay all costs incurred by the City in such suit, including a reasonable attorney's fee to be fixed by the court.
(Ord. 564 § 3, 2019)
When plans for an erosion control system are required as part of the grading permit pursuant to Section 11.40.140, the applicant must furnish security in connection with an agreement to perform erosion control work.
The amount of security must be 100% of the cost estimate for the work shown on the erosion control plan, subject to the approval of the City Engineer. Section 11.40.400 governs the types of securities acceptable by the City.
In addition to the required security for erosion control work, the applicant must provide a cash deposit for emergency erosion control work and emergency cleanup in the amount established by resolution of City Council, but in no case less than $5,000.00.
(Ord. 564 § 3, 2019)
Every surety bond and instrument of credit must include and every cash deposit and letter of credit must be made on the conditions that the permittee:
A. 
Complies with all provisions of this chapter, applicable laws and other ordinances;
B. 
Complies with all the terms and conditions of the grading permit to the satisfaction of the City Engineer;
C. 
Completes 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, or by any extension of time authorized by the City Engineer. Any extension authorized by the City Engineer must not release the owner or the surety on the bond or person issuing the instrument of credit;
D. 
Each security must remain in effect until the completion of the work to the satisfaction of the City Engineer.
(Ord. 564 § 3, 2019)
If a permittee fails to complete the work authorized in a grading permit or fails to comply with all conditions and terms of the grading permit, the City Engineer may complete or cause the completion of any work necessary to correct deficiencies or eliminate dangerous conditions and leave the site in safe, stable and nuisance-free condition or may order the work authorized by the permit to be completed to a safe, stable and nuisance-free condition. In such cases, the permittee, the surety executing a bond, and the person issuing the instrument of credit, letter of credit or making a cash deposit required by this chapter continue to be firmly bound under a continuing obligation to pay all necessary costs and expenses that may be incurred or expended by the City in causing any and all such work to be done.
(Ord. 564 § 3, 2019)
A. 
Cash deposits, bonds, or other security will be released on request in writing by the permittee when work is complete and approved by the City Engineer.
B. 
No security otherwise required by this chapter is required from the State, or any of its political subdivisions or any governmental agency. However, a contractor working for the State or any of its political subdivisions or any governmental agency must present a security for performance unless proof is submitted, satisfactory to the City Attorney, that the work is covered by a separate and similar security inuring to the benefit of the State or agency.
(Ord. 564 § 3, 2019)