City of Dixon Grading Permit Bond

What is the Purpose of the Grading Permit Bond?

The City of Dixon requires contractors performing construction involving grading to obtain a Grading Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Dixon that all contracted work will be completed on time and the jobsite will be returned to its original condition. 

How Much Does the Bond Cost?

The amount of the bond shall be designated by the Director of Public Works for the City of Dixon at the time of approval of the permit, and shall be in an amount which is determined to be sufficient for removal of the encroachment in the event the permittee fails to comply with the conditions of the encroachment permit. Municipal Code 16.04.100. 

The City Engineer may require a 10% maintenance bond for a period of one year from substantial completion of the project. 

The cost estimate shall include, but is not limited to:

1. The cost of cubic yards moved based on the volume of mass grading
2. The cost of grading individual lots just prior to occupancy based on the volume of finished grading.
3. The cost of any drainage structure designed to protect slope stability.
4. The cost of all materials and labor associated with the installation and maintenance of the erosion control plan.
5. The cost of any construction required by the soils or geologic report. 

The bond may be waived where it is determined that any injury to the city from the existence of the encroachment is minimal. Any security bond required by this section may be cash, or cash equivalent security approved by the city attorney and the risk manager, or a bond.

The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score.

*Prices shown are based on several factors. Not all available pricing tiers are shown. Rates do not constitute an offer of bonding and are subject to change at any time.

How Does the Permit Application Process Work With the City of Dixon?

A grading permit is required for all projects where 350 cubic yards or more of soil is moved, imported and/or exported or where clearing and grubbing is to occur on one or more acres of land. A permit is not required for projects where public improvement plans, which include the grading activities, have been submitted and approved by the Engineering Department.

An application for a grading permit must be submitted to the Building Official or City Engineer, and shall include, but not be limited to, the following:

1. The name, address and other contact information for the applicant, and the location of the site on which grading is to occur.
2. The name, address and other contact information for the owner of the site on which grading is to occur, if different from the applicant, and written authorization by the owner for the applicant to submit the application and perform the grading.
3. Payment of the grading permit fee as specified by resolution of the City Council.
4. Plans and specifications for the proposed grading as required by the Building Official or City Engineer
5. A soils engineering report or engineering geology report if required by the Building Office or City Engineer. 

For more application requirements, review municipal code 16.04.040.

Before a permit can be issued, a certificate of insurance, along with endorsement, with a minimum $1 million general liability policy and $1 million automobile liability coverage naming the City of Dixon as an additional insured on the policy must be on file with the Engineering Department. 

Permit applications must be submitted to the Engineering Department along with the Grading Permit Bond. 

Does CCIS File the Bond for Applicants?

City of Dixon requires wet signatures** on filed bond documents. This means both parties must physically sign the bond prior to sending it in to the City of Dixon. The original bond form issued by CCIS needs be mailed to or dropped off at the following location by the contractor once signed:

**Properly review bond forms to confirm if notarization is required. Failure to adhere to document requirements may lead to rejection of the bond form by the City of Dixon.

Does This Bond Expire?

The permit bond expires upon the specified expiration date, typically one year from the date of issuance. A new permit bond will need to be purchased should the project take longer than one year.

Claims Information

If the City of Dixon files a claim against the Grading Permit Bond, the Surety company will investigate the legitimacy of the claim and proceed accordingly. CCIS does not handle surety claims in office, however, claims contact information will be provided to the contractor, to move the claims process forward.

If the claim is found to be legitimate, the Surety company will payout to the City of Dixon, up to the limit of the bond. 

Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Dixon, its laborers, and suppliers from the actions of a contractor. Contractors are responsible for their actions and therefore must reimburse the Surety company for any claims paid. Failure to do so will significantly inhibit a contractor’s ability to obtain a surety bond for future jobs.