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)