A. 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 of reclaiming mined land. The applicant may pose security in the form of a surety bond, trust fund, an irrevocable letter of credit from an accredited financial institution, or other method acceptable to the city and the State Department of Mining and Geology Board as specified in regulation, and which the city reasonably determines is adequate to perform reclamation in accordance with the reclamation plan. Financial assurance shall be made payable to both the city and the State Department of Conservation.
B. Financial assurance shall 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 habitats, restoration of water bodies and water quality, slope stability and erosion and drainage control, disposal of hazardous materials and other measures as may be appropriate by the planning commission.
C. Cost estimates for the financial assurance shall be submitted to the planning director as part of the initial application for the surface mining operation. The planning director shall forward a copy of the cost estimates, together with any documentation received supporting the amount of the cost estimates, to the State Department of Conservation for review. If the state does not comment within the required review period, it shall be assumed that the cost estimates are adequate. The planning commission shall have the discretion to approve the financial assurance if it meets the requirements of this chapter, SMARA and related state regulations.
D. The amount of the financial assurance shall be based upon the estimated costs of reclamation for the years or phases stipulated in the reclamation plan, including any maintenance of reclaimed areas as may be required. Cost estimates shall be prepared by a qualified professional retained by the operator that has been 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 reclamation plan, including administrative costs. Financial assurance 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. A contingency factor of ten percent shall be added to the cost of financial assurances.
E. In projecting the costs of financial assurance, it shall be assumed without prejudice or insinuation that the surface mining operation could be abandoned by the operator and, consequently, the city may need to contract with a third party commercial company for reclamation of the site.
F. The financial assurance shall remain in effect for the duration of the surface mining operation.