Dana Point Municipal Code Art. 7 Bonds

(a) Grading Permit Bonds Required. A grading permit shall not be issued unless the permittee shall first post with the Director a grading permit bond executed by the owner and a corporate surety authorized to do business in the State of California as a surety in an amount specified in Subarticle 7 of the Grading Manual. The grading permit bond is required to assure that the work, if not completed in accordance with approved plans and specifications, will be corrected to eliminate hazardous conditions and/or threats to environmental conditions, including but not limited to a threat to water quality. This requirement may be waived at the discretion of the Director if the Director determines that:

(1) No hazardous situation is likely to occur as a result of incomplete or improper grading; or

(2) No adverse effect is likely to occur to subject property, adjacent property or an existing or proposed structure thereon as a result of incomplete or improper grading; or

(3) No significant drainage, erosion, flooding or siltation problems will exist as a result of incomplete or improper grading; or

(4) No water quality threat to human or environmental health will occur as a result of incomplete or improper grading; or

(5) No adverse geological or environmental impacts will occur as a result of incomplete or improper grading; or

(6) No conditions of the permit warrant a financial guarantee to assure their satisfactory completion.

(b) An additional cash grading permit bond in an amount determined by the Director may be required to ensure the completion of finish grading under the grading permit as a condition of occupancy and energizing utilities. A grading permit bond in an amount determined by the Director may be required for permits involving temporary earthen stockpiles to ensure their timely removal. A grading permit bond in an amount determined by the Director may be required to protect City streets during hauling operations.

(c) Failure to Complete Work. In the event of failure to comply with all of the conditions and terms of the grading permit, the Director may order the work authorized by the grading permit to be completed or put in a safe condition to the Director's satisfaction. The surety executing such grading permit bond or deposit shall continue to be firmly bound under a continuing obligation for the payment of all necessary costs and expenses that may be incurred or expended in causing any and all such work to be done. In the case of a cash deposit, said deposit or any unused portion thereof, shall be refunded to the permittee.

(d) Default in Performance of Conditions. Whenever the Director finds or determines that a default has occurred in the performance of any requirement of a condition of a grading permit, written notice thereof shall be given to the principal and, when applicable, to the surety on the grading permit bond. Such notice shall specify the work to be done, the estimated cost thereof and the period of time deemed by the Director to be reasonably necessary for the completion.

After receipt of such notice, the surety shall, within the time specified, cause or require the work to be performed, or failing therein, shall pay over to the Director the estimated cost of doing the work as set forth in the notice. Upon receipt of such monies the Director may cause the required work to be performed and completed. The surety shall pay the Director actual costs in excess of the estimate amount plus a mobilization charge specified in Section 8.01.310, Emergency Work; Cost Recovery Fees, of this Code.

(e) Grading Permit Bond or Cash Deposit Required for Return of the Property to "Natural State." Whenever the Director determines that the property shall be returned to its "natural state" in accordance with the provisions of this Code, a grading permit bond or cash deposit, in an amount determined by the Director, will be required for faithful performance, labor and materials, grading, installation of landscaping and maintenance until the property is returned to the "natural state," which completion date shall be determined by the Director.

(Added by Ord. 98-03, 3/10/98; amended by Ord. 03-04, 2/12/03; Ord. 03-18, 12/10/03; Ord. 10-09, 10/25/10)