Durham Stormwater Control Bond: A Comprehensive Guide

May 3, 2022

Durham Stormwater Control Bond

This guide provides information for insurance agents to help their customers obtain a Durham Stormwater Control bond

At a Glance:

  • Average Cost: Between 1% to 12.5% of the bond amount per year based on the applicant’s credit history
  • Bond Amount: 125% of the cost of constructing the stormwater device(s)
  • Who Needs it: Developers either developing or redeveloping land in the unincorporated areas of Durham County, North Carolina as well as the eventual owners of the land
  • Purpose: To ensure the county will receive compensation for financial harm if all stormwater devices are not properly installed and maintained
  • Who Requires the Bond: The Durham County Engineering and Environmental Services Department

Background

Durham County Stormwater Ordinance 14-157 requires developers seeking to develop or redevelop land within the unincorporated areas of Durham County to obtain a permit from the Engineering and Environmental Services Department. The Durham County Board of Commissioners enacted the permitting requirement to better monitor and control stormwater runoff in these areas. To provide financial security for the enforcement of the permit requirement, developers must purchase and maintain a surety bond to be eligible for a permit.

Additionally, the eventual landowners of the developed land must also obtain a permit and purchase a surety bond before doing so.

What is the Purpose of the Durham Stormwater Control Bond?

Durham requires developers operating in unincorporated areas of the county, as well as the eventual landowners, to purchase a surety bond as a part of the application process to obtain a stormwater permit. The bond ensures that the county will receive compensation for financial harm if the developer/landowner fails to abide by the regulations outlined in the Durham County Stormwater Ordinance. Specifically, the bond protects the county if the developer does not properly install all stormwater devices and the landowner does not correctly maintain them. In short, the bond is a type of insurance that protects the public if the developer/landowner violates the terms of their stormwater permit.

Durham Stormwater Control Bond Form

Durham Stormwater Control Bond Form

How Can an Insurance Agent Obtain a Durham Stormwater Control Surety Bond?

BondExchange makes obtaining a Durham Stormwater Control bond easy. Simply log in to your account and use our keyword search to find the “Durham” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Durham Stormwater Control Bond?

Surety companies will run a credit check on the bond applicant to determine eligibility and pricing for the Durham Stormwater Control bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.

How Much Does the Durham Stormwater Control Bond Cost?

The Durham Stormwater Control bond can cost anywhere between 1% to 12.5% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $20,000 bond requirement.

$20,000 Stormwater Control Bond Cost

Credit Score Bond Cost (1 year)
720+ $200
680 – 719 $300
650 – 679 $400
600 – 649 $800
550 – 599 $1,500
500 – 549 $2,500

Who is Required to Purchase the Durham Sedimentation and Erosion Control Bond?

Durham requires developers that are developing or redeveloping land in the unincorporated areas of Durham County to purchase a surety bond as a prerequisite to obtaining a construction stormwater permit. Additionally, persons buying the land must purchase a surety bond to obtain an operational stormwater permit.  “Unincorporated areas” refers to land within Durham County that is not governed by a local municipal authority.

Exemptions to the permit, and therefore the bond, requirements include developments that meet all of the following criteria:

  • Less than 12,000 feet is being disturbed
  • Less than 500 square feet of new impervious surface area
  • No new structural stormwater conveyance
  • Consists solely of agriculture, mining, or forestry activities

How do Developers Apply for a Stormwater Permit in Durham?

Developers and landowners in Durham must navigate several steps to obtain a stormwater permit. Below are the general guidelines, but applicants should refer to the Durham County Stormwater Ordinance for details on the process.

Developers

Step 1 – Complete the Stormwater Control Plan

Before obtaining a stormwater permit, applicants must first complete a stormwater control plan and submit it to the Stormwater and Erosion Control Division electronically here. Completed stormwater control plans will include:

    • Signed and sealed engineering documents containing information relevant to stormwater construction
    • Stormwater impact analysis
    • Construction drawing checklist  
    • Signed and sealed construction cost estimates for each SCM associated with the development as well as their maintenance costs for the next 10 years
    • All required review fees

All stormwater control plans must be prepared and signed by a registered professional engineer.

Step 2 – Pass Inspection

Once the applicant’s stormwater control plan is approved, the County will conduct an inspection of the job site to determine whether it complies with all requirements. The county will contact the applicant to schedule an inspection time.

Step 3 – Purchase a Surety Bond

Applicants must purchase and maintain a surety bond in an amount that is equal to 125% of the cost of constructing the stormwater device(s).

Step 4 – Apply for a Construction Stormwater Permit

Developers are eligible to apply for a construction stormwater permit after submitting their stormwater control plans, passing a site inspection, and purchasing a surety bond. Developers should mail or deliver their completed permit applications to the following address:

COUNTY OF DURHAM
Durham County Engineering Department
c/o Stormwater Administrator
120 East Parrish St., 1st floor
Durham, NC 27701

Construction stormwater permit applications must contain the following items:

    • Financial Responsibility Form with landowner consent
    • Approved stormwater construction drawing plans and calculations
    • Proof of approval from the North Carolina Department of the Environment and Natural Resource’s Division of Water Quality if the development is affecting riparian buffer areas

Landowners

Once the development is constructed, the person buying the land must obtain an operational stormwater permit before being granted ownership over the land. These permits are issued in perpetuity and must be maintained annually with the county engineer. To obtain an operational stormwater permit, landowners must complete the following steps:

Step 1 – Purchase a Surety Bond

Landowners must purchase and maintain a surety bond in an amount equal to 125% of the cost of constructing the stormwater device(s) (same amount as the developer’s bond).

Step 2 – Complete the Application

Landowners should submit their completed permit applications to the following address:

COUNTY OF DURHAM
Durham County Engineering Department
c/o Stormwater Administrator
120 East Parrish St., 1st floor
Durham, NC 27701

Operational stormwater permit applications must contain the following items:

    • Financial Responsibility Form with landowner consent
    • As-built plans and certifications comprised of:
      • The name and address of the landowner
      • Certified survey of stormwater control measure
      • Statement verifying all inspected stormwater control facilities meet all applicable standards
      • The original signature and seal of the engineer, surveyor or landscape architect performing the certification
    • Operations and Maintenance Agreement and Manual

What are the Liability Insurance Requirements for Stormwater Permits in Durham?

Durham does not require developers and landowners to purchase any form of liability insurance as a prerequisite to obtaining a stormwater permit. However, developers may be required to purchase insurance before obtaining a building permit or business license.

How Do Durham Stormwater Permit Holders File Their Bonds?

Stormwater permit holders in Durham should submit their completed bond forms, including the power of attorney, to the following address:

COUNTY OF DURHAM
Durham County Engineering Department
c/o Stormwater Administrator
120 East Parrish St., 1st floor
Durham, NC 27701

The surety bond requires signatures from both the surety company that issues the bond and from the permit applicant. The surety company should include the following information on the bond form:

  • Legal name, address, and phone number of entity/individual(s) buying the bond
  • Surety company’s name, address, and phone number
  • Bond amount
  • Project’s name
  • Durham County job control number

What Can Durham Developers and Landowners Do to Avoid Claims Against Their Stormwater Control Bonds?

To avoid claims on their Stormwater Control bonds, developers in Durham must ensure that they properly install all stormwater devices and landowners must ensure that they correctly maintain them.

What Other Insurance Products Can Agents Offer Stormwater Permit Holders in Durham?

Durham does not require developers and landowners to purchase any form of liability insurance as a prerequisite to obtaining a stormwater permit. However, most permit holders will obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Durham Stormwater Permit Holder Customers?

Durham unfortunately does not provide the public with a list of active stormwater permits in the county. We suggest contacting the Stormwater and Erosion Control Division to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-06-02T17:22:48-04:00