Appropriate security or guarantees shall be provided by the applicant to ensure proper implementation of the reclamation plan as required by the Public Resources Code, as a condition of issuance of a permit and/or approval of a reclamation plan. The guarantee may be in the form of a surety bond, trust fund, irrevocable letter of credit, or other financial assurance mechanisms acceptable and payable to the county and the State Department of Conservation (beneficiaries must be stated as "County of San Luis Obispo or Department of Conservation") and consistent with the procedure described in Section 23.02.060 (guarantees of performance). The amount of financial assurances shall be determined and processed as follows:
(1) The applicant shall provide estimated total costs of reclamation and maintenance for each year or phase as approved in the reclamation plan. Cost estimates shall be prepared by a licensed civil engineer, licensed landscape architect, state-registered forester, mining operator, or other qualified professionals retained by the operator and approved by the director of planning and building. In estimating the costs, it shall be assumed without prejudice or insinuation that the operation could be abandoned by the operator and, consequently, the county or state may need to contract with a third party to complete reclamation of the site. Cost estimates shall include, but not be limited to, labor, equipment, materials, mobilization of equipment, administration and reasonable profit by a third party.
(2) Two copies of the cost estimates, including documentation of the calculations, shall be submitted to the director of planning and building for concurrent review by the county and the state. One copy will be transmitted to the State Department of Conservation for their review. The state shall have forty-five days to prepare written comments regarding consistency with statutory requirements prior to any final action taken by the county. When the director’s position is different from the recommendations and/or objections raised in the state’s comments, the county will prepare a written response describing in detail why specific comments and suggestions were not accepted. Upon notification of approval of the financial assurances, the applicant will have thirty days to return a completed performance agreement and valid financial assurance mechanism to the director of planning and building.
(3) The amount of the financial assurance will be reviewed as part of the annual review of the operation by the county to determine if any changes are necessary. Where reclamation is phased in annual increments, the amount shall be adjusted annually to cover the full estimated costs for reclamation of any land projected to be in a disturbed condition from mining operations by the end of the following year. The estimated costs shall be the amount required to complete the reclamation on all areas that will not be subject to further disturbance, and to provide interim reclamation, as necessary, for any partially excavated areas in accordance with the approved reclamation plan. Financial assurances for each year shall be reviewed upon successful completion of reclamation (including maintenance) of all areas that will not be subject to further disturbance and adjusted as necessary to provide adequate assurances for the following year. Prior to county approval, any amendments or changes to an existing financial assurance will be submitted to the state for its review.
(4) If a mining operation is sold or ownership is transferred to another person, the existing financial assurances shall remain in force and shall not be released by the lead agency until new financial assurances are secured from the new owner and have been approved by the lead agency. Financial assurances shall no longer be required of a surface mining operation, and shall be released, upon written notification by the lead agency, which shall be forwarded to the operator and the state, that reclamation has been completed in accordance with the approved reclamation plan. (Ord. 2715 § 141 (part), 1995: Ord. 2592 § 9 (part), 1992)