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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
DEP will not issue the Notice to Proceed on a reconstructed dune until the removal and restoration money is guaranteed. A surety bond on DEP's own form does that without tying up the full cost estimate in a trust fund or letter of credit, so the project can start while your cash stays in the business or the association's reserves.
Florida requires financial assurance from the responsible entity on any permitted reconstructed dune, meaning a dune built over a sand-filled geotextile container core. The bond guarantees that DEP will have the money to pull the core out, remove all fabric and debris, restore the beach and dune contours and replant native vegetation if the permit is revoked. There is no fixed amount. The penal sum equals an independent professional's cost estimate for removal and restoration plus a one-time deferred removal cost, and it must be in place before DEP issues the Notice to Proceed.
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This is the point most people miss. Rule 62B-56.090, F.A.C. sets no dollar amount. The responsible entity hires a qualified, independent professional to estimate the cost of removing the dune core and restoring the site, including topography and native beach dune vegetation, plus a one-time deferred removal cost. That estimate goes on DEP's Financial Assurance Worksheet, Form 62B-56.900(2), and the bond is written for that number. The deferred removal cost covers burying the core in sand during marine turtle nesting season and taking it out once the season ends.
The estimate is not permanent. The rule requires the responsible entity to revise and resubmit it every five years from the date of permit issuance to account for inflation and other cost changes, and the bond forms state that the amount may not be reduced without the written approval of the DEP Secretary.
Section 161.085(9)(b), Florida Statutes, requires the applicant or successive property owners to provide financial assurance in the form of surety or performance bonds or other financial responsibility mechanisms. Under Chapter 62B-56 the obligation sits with the responsible entity, which can be a property owner, a local government, a state or federal agency, or a corporation such as a homeowners association. The assurance must be delivered before DEP issues the Notice to Proceed.
DEP accepts a trust fund, a letter of credit, a standby trust, or a surety bond. For a bond, use Payment Bond Form 62B-56.900(11) or Performance Bond Form 62B-56.900(12). Both name the Florida Department of Environmental Protection as obligee and require a surety listed in U.S. Treasury Circular 570. Under the performance form, once DEP gives notice that the responsible entity has failed to comply with Rule 62B-56.160(6), the surety must either do the removal and restoration itself or pay the guaranteed amount into the standby trust fund.
Under 161.085, DEP must order removal if the core loses its required sand cover, is irreparably damaged, causes significant adverse impacts to the beach dune system, or loses its federal wildlife authorization. After a final order upholding revocation, Rule 62B-56.160(6) requires the responsible entity to remove all structural material and geotextile fabric offsite, restore beach dune contours, revegetate with native plants, and notify DEP within 14 days of finishing.
The surety can cancel only by certified mail to the responsible entity and the DEP Secretary, and cancellation cannot take effect for 120 days after both receive notice. If the responsible entity funds the standby trust or gets DEP approval of other assurance within 90 days after the cancellation notice, the bond is released. If it does not, the surety pays into the standby trust as the DEP Secretary directs.
The surety prices the bond from the penal sum, the credit and financial strength of the responsible entity, and the length of the obligation. An association or local government with clean financials is underwritten differently from an individual owner, and larger penal sums usually call for financial statements.
It equals the cost to remove the geotextile dune core and restore the site, plus a one-time deferred removal cost, as estimated by a qualified independent professional on Form 62B-56.900(2). Every project has its own number.
Before it issues the Notice to Proceed. Rule 62B-56.090 requires the financial assurance to be in place before construction is authorized to begin.
Yes. The responsible entity must revise and resubmit the cost estimate every five years from the date of permit issuance, and the bond must keep pace. It cannot be reduced without the DEP Secretary's written approval.
Yes. Chapter 62B-56 defines the responsible entity to include property owners, local governments, state or federal agencies, and corporations such as homeowners associations, as long as it has the financial and legal authority to carry out the permit.
Under the performance bond form, after DEP gives notice of noncompliance with Rule 62B-56.160(6), the surety either removes the core and restores the site under the plan or pays the guaranteed amount into the standby trust fund. The responsible entity then repays the surety.
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