Surety Bond Encyclopedia

Grading Permit Bond - City of Lake Forest, CA in California

Brief Summary

Lake Forest will not issue a grading permit until security is posted with the City Engineer, and the grading bond is one of the last items on the final submittal list. Sized from your approved cost estimate, a surety bond lets you meet that requirement for a premium instead of leaving cash on deposit for the life of the job.

Under Lake Forest Municipal Code 8.30.090, a grading permit is not issued until the permittee posts security with the City Engineer in the form and amount set in the city Grading Manual. The city's grading plan submittal checklist bases the grading bond on the approved cost estimate. The City Engineer can waive the security when incomplete grading would pose no hazard, drainage, geologic or environmental risk, and can require added security for finish grading or temporary stockpiles.

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How to Apply for a Grading Permit Bond:

  • Get the city's approval of your engineer's grading cost estimate.
  • Confirm the bond amount and acceptable form with Lake Forest Public Works before ordering the bond.
  • Have the owner name, job address and permit number exactly as shown on the grading permit.
  • Complete the bond application and owner credit review.
  • Deliver the grading bond with the inspection deposit, insurance certificate and other final submittal items.
  • Keep the bond in force until the City Engineer accepts the completed grading.

Detailed Information About the California Grading Permit Bond:

When you need it

Lake Forest Municipal Code 8.30.030 requires a grading permit from the City Engineer for grading, clearing, excavating or other land disturbance of one acre or more, and for smaller disturbances that could cause a pollutant discharge or water quality violation. Small cuts and fills under 50 cubic yards, footing excavations under a building permit, utility trenching and work by public agencies can be excepted.

Section 8.30.090 then says the grading permit will not issue until the permittee posts security with the City Engineer. The purpose is to make sure that work not finished to the approved plans can be corrected so it does not leave hazards or threaten water quality.

How much

The code sends you to the Grading Manual for the form and amount. The city's Grading Plan Submittal checklist lists the grading bond as part of the final submittal, based on the approved cost estimate. In practice your engineer's cost estimate, once the city approves it, sets the bond figure. The city permit form records the bond type, amount and bond company.

When the City Engineer can waive it

The City Engineer may waive security if incomplete or improper grading would create no hazard, no harm to the site, neighboring property or structures, no significant drainage, erosion, flooding or siltation problem, no adverse geologic or environmental impact, or if nothing in the permit conditions calls for a financial guarantee.

Blanket and added security

An owner running several grading projects at once, or in phases, may be allowed one continuing blanket security covering all of them in an amount the City Engineer sets. Separately, the Building Official or City Engineer can require extra security to guarantee finish grading before occupancy and utility release, and the City Engineer can require security for temporary earthen stockpiles.

If the work is not finished

On a default, the City Engineer gives written notice to the permittee and the surety listing the work, the estimated cost and the deadline. If the work is not done, the estimated cost is demanded from the surety and the city completes the work, including a mobilization charge under Section 8.30.084.

What else goes with the bond

The final submittal also calls for an inspection deposit, an insurance certificate and endorsement, letters of authorization, any encroachment permits, a copy of the contractor's license and the approved WQMP.

Eligibility and Requirements for a California Grading Permit Bond:

  • City of Lake Forest named as obligee.
  • Surety authorized to write bonds in California.
  • Bond amount based on the city approved grading cost estimate.
  • Separate insurance certificate and endorsement filed with the final submittal.
  • Possible added security for finish grading or temporary stockpiles.

California Grading Permit Bond FAQs:

How is the bond amount set?

The code points to the city Grading Manual, and the city's submittal checklist bases the grading bond on the approved cost estimate. Confirm the figure with Public Works before the bond is issued.

Can the bond be waived?

Yes. The City Engineer can waive security under LFMC 8.30.090 when incomplete grading would not create hazards, drainage or erosion problems, or geologic or environmental harm.

We have several grading permits going. Do we need a bond for each?

Not necessarily. For one owner with phased or concurrent projects, the city may accept a single blanket security in an amount the City Engineer sets.

Could the city ask for more security later?

Yes. Extra security can be required to guarantee finish grading before occupancy and utility release, and for temporary earthen stockpiles.

What drives the premium?

The surety prices it from the bond amount and the credit and financial strength of the owner or company applying.

Grading Permit in Other California Locations

City of Beverly Hills, CACity of Chino Hills, CACity of Glendale, CACity of Hemet, CACity of Los Angeles, CACity of Poway, CACity of Santa Clarita, CACity of Tustin, CAOrange County, CASausalito, CA

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