MCWD: Rule K: Performance Bond or Letter of Credit

As Amended May 25, 2000

1. FINDINGS. The Board finds that:

(a) It is the policy of the Board of Managers to conserve the water resources of the District by assuring compliance with the District’s rules in the performance of activities within the District.

(b) Requiring a bond or other surety to be submitted with a permit application and conditioned on adequate performance of the authorized activities and compliance with District rules is an effective way to conserve the water resources of the District.

2. SURETY REQUIREMENT.

(a) A performance bond, letter of credit or other surety in a form approved by the District shall be submitted to the District with each application for a permit for an activity regulated under Rule B - Erosion Control, Rule E - Dredging, Rule F - Shoreline and Streambank Improvement, or Rule N - Stormwater Management, with the exception that a surety is not required for installation of a sandblanket.

(b) The District may require a surety to be submitted to the District for other permit applications in an amount set by the Board of Managers.

(c) The surety shall be submitted by the permit applicant but the surety principal may be either the landowner or the individual or entity undertaking the proposed activity.

3. SURETY AMOUNT.

The amount of the surety shall be set by the Board of Managers by resolution as the amount the Board deems necessary to cover the following potential liabilities to the District:

(a) Post-permit field inspection, monitoring and related fees authorized under Minn. Stat. § 103D.345;

(b) The cost of maintaining and implementing protective measures set forth in or incorporated into the permit; and

(c) The cost of remedying damage resulting from permit noncompliance or for which the permittee otherwise is responsible.

4. SURETY FORM AND CONDITIONS.

(a) The surety shall be in a form acceptable to the District and, if a commercial surety, from a surety licensed and doing business in Minnesota.

(b) The surety shall be in favor of the District and conditioned upon the applicant’s performance of the activities authorized in the permit in compliance with all applicable laws, including the District’s rules, the terms and conditions of the permit and payment when due of any fees or other charges authorized by law, including the District’s rules. The surety shall state that in the event the conditions of the surety are not met, the District may make a claim against it.

(c) The surety must be good for at least a one-year period and shall contain a provision that it may not be canceled without at least thirty (30) days prior written notice to the District by the surety.

5. SURETY RELEASE.

(a) For a surety covering a single project, on written notification of project completion, the District may inspect the project to determine if it is constructed in accordance with the terms of the permit and District rules. If the project is completed in accordance with the terms of the permit and District rules and there is no outstanding balance of money owed to the District for the project, including but not limited to unpaid Rule J fees, the District will release the surety. If the District has not inspected the project and made a determination of the project’s compliance with the above criteria within 45 days of District receipt of written notification of project completion, the surety is deemed released.

(b) A surety covering more that one permit application will be released by the District on written request of the principal if the conditions listed in either of the following subdivisions are met:

(1) Pursuant to an inspection by the District of the final project covered by the surety, the District determines that the project is completed in accordance with the terms of the permit and District rules and there is no outstanding balance of money owed to the District for the project, including but not limited to unpaid Rule J fees. If the District has not inspected the project and made a determination of the project’s compliance with the above criteria within forty-five days of District receipt of written notification of final project completion, the surety is deemed released.

(2) The applicant submits a new surety in a form and amount satisfactory to the District.


		Rule K: Performance Bond or Letter of Credit As Amended May 25, 2000 1. FINDINGS. The Board finds that: (a) It is the policy of the Board of Managers to conserve the water resources of the District by assuring compliance with the District’s rules in the performance of activities within the District. (b) Requiring a bond or other surety to be submitted with a permit application and conditioned on adequate performance of the authorized activities and compliance with District rules is an effective way to conserve the water resources of the District. 2. SURETY REQUIREMENT. (a) A performance bond, letter of credit or other surety in a form approved by the District shall be submitted to the District with each application for a permit for an activity regulated under Rule B - Erosion Control, Rule E - Dredging, Rule F - Shoreline and Streambank Improvement, or Rule N - Stormwater Management, with the exception that a surety is not required for installation of a sandblanket. (b) The District may require a surety to be submitted to the District for other permit applications in an amount set by the Board of Managers. (c) The surety shall be submitted by the permit applicant but the surety principal may be either the landowner or the individual or entity undertaking the proposed activity. 3. SURETY AMOUNT. The amount of the surety shall be set by the Board of Managers by resolution as the amount the Board deems necessary to cover the following potential liabilities to the District: (a) Post-permit field inspection, monitoring and related fees authorized under Minn. Stat. § 103D.345; (b) The cost of maintaining and implementing protective measures set forth in or incorporated into the permit; and (c) The cost of remedying damage resulting from permit noncompliance or for which the permittee otherwise is responsible. 4. SURETY FORM AND CONDITIONS. (a) The surety shall be in a form acceptable to the District and, if a commercial surety, from a surety licensed and doing business in Minnesota. (b) The surety shall be in favor of the District and conditioned upon the applicant’s performance of the activities authorized in the permit in compliance with all applicable laws, including the District’s rules, the terms and conditions of the permit and payment when due of any fees or other charges authorized by law, including the District’s rules. The surety shall state that in the event the conditions of the surety are not met, the District may make a claim against it. (c) The surety must be good for at least a one-year period and shall contain a provision that it may not be canceled without at least thirty (30) days prior written notice to the District by the surety. 5. SURETY RELEASE. (a) For a surety covering a single project, on written notification of project completion, the District may inspect the project to determine if it is constructed in accordance with the terms of the permit and District rules. If the project is completed in accordance with the terms of the permit and District rules and there is no outstanding balance of money owed to the District for the project, including but not limited to unpaid Rule J fees, the District will release the surety. If the District has not inspected the project and made a determination of the project’s compliance with the above criteria within 45 days of District receipt of written notification of project completion, the surety is deemed released. (b) A surety covering more that one permit application will be released by the District on written request of the principal if the conditions listed in either of the following subdivisions are met: (1) Pursuant to an inspection by the District of the final project covered by the surety, the District determines that the project is completed in accordance with the terms of the permit and District rules and there is no outstanding balance of money owed to the District for the project, including but not limited to unpaid Rule J fees. If the District has not inspected the project and made a determination of the project’s compliance with the above criteria within forty-five days of District receipt of written notification of final project completion, the surety is deemed released. (2) The applicant submits a new surety in a form and amount satisfactory to the District. © Copyright 2003-2006, Minnehaha Creek Watershed District. All rights reserved. This site hosted by Real Time Enterprises. Optimal Settings: 800x600 res, 16-bit color JavaScript-enabled Browsers: MSIE 5+, Netscape 6+/Firefox 0.9+, Opera 7+