WHY IS A SEDIMENT CONTROL BOND NECESSARY?

The purpose of requiring bonds for erosion and sediment control permits/stormwater management facility construction is to indemnify the County for the costs of completing unfinished or abandoned work. All Engineered Sediment Control Plans require a bond posted for an amount based on the extent of the area to be disturbed and the full cost of any required stormwater structures.

What is the application process?

After receipt and approval of the Sediment Control Permit Application package, the applicant will be mailed a billing memorandum which specifies the fee and bond amounts.

For Sediment Control plans, the bond amount is $300.00, plus $.02 per sq. ft. of disturbed area, for a maximum amount of $10,000.00. If Stormwater Management is to be provided on-site, the consulting engineer must provide a construction cost estimate with the application package, and a bond will be required for the construction cost of the facility, plus the sediment control amount. Samples of County Attorney approved instruments for posting bonds are included with the billing memorandum.

There are four types of bonds currently in use:

• Letters of Credit issued by banks on their letterhead; must be issued for a minimum of two years.



• Performance Bonds available through insurance brokers.



• Certificates of Guaranty issued by the Development Guaranty Corporation of Montgomery County (a membership organization).



• Cash Bonds payable by personal or corporate check to Montgomery County Department of Permitting Services.

Replacement of Bonds Fee.........................$121.00
Reduction of Bonds Fee..............................$242.00

The above fees include a 10% automation enhancement fee. Filing fees and permit fees are based on fees in effect on the date the application was filed. All other fees are based on fees in effect at the time the service is requested (revision fee, extension fee, etc.).

After the Sediment Control Plans have been approved and the bond (other than cash or Certificate of Guaranty) has been approved by the County Attorney's Office, the Sediment Control Permit will be issued.

Other Agencies involved:

The County Attorney's Office must approve the format and content of all Letters of Credit.

When will my bond be released?

After work has been completed and a "final inspection" approved, the bond release will be processed.

Processing Time

The sediment control inspector prepares a completion certificate and delivers the file and certificate to a Permit Technician, who then closes the file and releases any bond posted. A copy of the signed completion certificate and original bond will be mailed to the applicant. If a cash bond had been posted, the Department will release the escrowed monies and authorize the Finance Department to issue a check. Processing time for Cash Bonds can take from two to four weeks, or longer, depending on workload factors/project complexity.