In article IUhDe.35561$Tx1.6639@trnddc03, says...
In a shrub area, I found about ten sand mounds about 1-inch diameter with a
hole in the center about 5-mm. I also notice bee-like insects with black and
yellow stripes flying into the holes. They are about 1-cm long, smaller than
an average bee. Plus, the nest looks nothing like a bee nest (on high places
buzzing with activities).

Any idea what this insect is?

http://www.smugmug.com/gallery/672644
The arrows point to the mounds and in the middle of the red circle is one of
those bugs hovering in the air -- please click on "original" to see it; it's
kind of blurry.

They are called "Digger Bees" each hole is a separate nest. Mostly
harmless, but if they are stepped on the female will sting...males will
be buzzing about fighting each other to mate but have no stinger.
Keeping the area wet is supposed to be a way to chase them away.

--
Lar

to email....get rid of the BUGS