Grading and Erosion Control Performance Bond Bond - City of Oakland, CA in California

Brief Summary

Oakland requires performance security on every grading permit it issues, and the floor is the full engineer's estimate of the grading cost. A surety bond lets you meet that requirement without tying up cash or a letter of credit for the life of the project, which on hillside sites can run well past one wet season.

Under Oakland's grading rules in Municipal Code Section 15.04.3.2075 (Chapter 18B of the Oakland Building Code), every grading permit needs a performance security of at least 100 percent of the civil engineer's estimated cost of the grading work. The Building Official can set it higher and can require a separate or combined security for erosion and sedimentation control that stays in force through the wet season. A surety bond is one of the accepted forms.

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How to Apply for a Grading and Erosion Control Performance Bond Bond:

• Confirm the project meets a grading permit trigger under Oakland's Chapter 18B.
• Have a civil engineer prepare the itemized estimate of grading cost for the permit application.
• Get the security amount set by the Building Official, which is at least 100 percent of that estimate.
• Ask whether erosion and sedimentation control will be secured separately or within the grading bond.
• Obtain a bond for an indefinite duration naming the City of Oakland and file it before the permit is issued.
• Keep the bond in force until the Building Official accepts the Statement of Completion.

Detailed Information About the California Grading and Erosion Control Performance Bond Bond:

Every grading permit carries security

Section 18118.1 of Oakland's grading chapter says a performance security is required for every grading permit issued. There is no small project exemption once a permit is needed. The Building Official sets the amount after looking at the estimated cost of the work, what could happen if it is left unfinished, especially to neighboring property, and public safety. The minimum is 100 percent of the civil engineer's estimate of the grading cost. The permit application must include an itemized cost estimate from a civil engineer for exactly this purpose.

The erosion control piece

Where the approved grading plan includes erosion and sedimentation control work, Section 18118.2 lets the Building Official require security for it separately or as part of the grading security. That portion stays in force during the wet season, which the chapter defines as October 15 through April 15, or another period the Building Official sets.

When a grading permit is required

A permit is triggered by, among other things, more than 50 cubic yards of cut or fill on slopes over 20 percent or with more than five feet of vertical difference, more than 500 cubic yards of combined cut and fill on a parcel, steep cuts or fills near a property line, and clearing or land disturbance of one acre or more.

Form and term

The security can be cash, a cashier's check, an approved surety bond for an indefinite duration, an irrevocable letter of credit, or another liquid instrument the Building Official approves. The bond benefits the City of Oakland and any person harmed by the owner's failure to meet the permit conditions. It runs from the date it is posted until the Building Official accepts the Statement of Completion.

If the work defaults

The Building Official issues a Notice of Default and the owner has 14 calendar days to comply or appeal. After that the surety must finish the work or pay the city the estimated cost to complete it, up to the bond amount. In an emergency the city can act three calendar days after notice.

Eligibility and Requirements for a California Grading and Erosion Control Performance Bond Bond:

• Surety bond written for an indefinite duration, as Section 18118.1 requires.
• Amount of at least 100 percent of the civil engineer's estimate of grading cost.
• City of Oakland as obligee, with the bond also benefiting anyone harmed by noncompliance.
• Owner or applicant as principal, bound jointly and severally with the surety.
• Credit and financial review of the principal, which sets the premium.

California Grading and Erosion Control Performance Bond Bond FAQs:

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