17.52.090 Permit—Conditions—Financial assurances.
As a condition of each permit, financial assurances to ensure reclamation is performed in accordance with the approved reclamation plan shall be required of the operator as follows:
A. Prior to the commencement of the surface-mining operation, the operator shall post with the city clerk a financial assurance. The financial assurance shall be: (1) a bond or bonds by one or more duly authorized corporate securities; (2) an irrevocable letter of credit from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the approved reclamation plan are on deposit and guaranteed for payment; (3) a cash deposit to be deposited into a trust fund; or (4) any other financial assurance specified by the State Mining and Geology Board pursuant to Section 2773.1 (e) of the Public Resources Code. The amount of the financial assurance shall be adequate to perform reclamation in accordance with the surface-mining operation's approved reclamation plan and shall be adjusted annually to account for new lands disturbed, inflation, and reclamation of lands accomplished in accordance with the approved reclamation plan. Said adjustment shall be based upon an independent estimate derived from a survey by a qualified professional paid for by the operator. In addition, all financial assurances shall be made to the city and the Department of Conservation and shall remain in effect for the duration of the surface-mining operation and any additional period until reclamation is completed.
B. If the city council, following a public hearing in accordance with the procedures set forth in Section 17.52.070 of this chapter, determines that the permittee is financially incapable of performing reclamation in accordance with its approved reclamation plan or has abandoned its surface-mining operation without commencing reclamation, the maintenance supervisor shall:
1. Notify the operator by personal service or certified mail that the city intends to take appropriate action to forfeit the financial assurance and specify the reasons for so doing;
2. Call the operator sixty days after notification to commence or cause the commencement of reclamation plan and require the reclamation be completed within the time limits specified in the approved reclamation plan or some other time mutually agreed upon by the maintenance supervisor and the operator;
3. Proceed to take appropriate action to require forfeiture of the financial assurance if the operator does not substantially comply with the provisions of subsection (B)(2) of this section;
4. Use the proceeds from the forfeited financial assurance to conduct and complete reclamation in accordance with the approved reclamation plan. The operator shall be responsible for the costs of conducting and completing reclamation in accordance with the approved reclamation plan which are in excess of the proceeds from the forfeited financial assurance.
C. Upon completion of reclamation in accordance with the approved reclamation plan, the financial assurance shall be released. Written notification of the release shall be provided to the operator and director of the Department of Conservation. (Ord. 95-01 § 9, 1995)