Encroachment Permit Bond - City of Newark, CA in California

Brief Summary

Newark will not issue an encroachment permit for work in a public street until the city engineer has a bond or cash deposit in hand. A surety bond keeps your cash free for the job itself, and contractors who pull Newark permits all year can ask to file one annual bond instead of a new bond for every permit.

Newark Municipal Code Section 12.08.180 requires an encroachment permit applicant to file a bond with the city engineer equal to the estimated cost of the work plus 20 percent, unless the bond is waived in the permit. The City of Newark is the obligee, the surety must be authorized in California, and cash may be deposited instead. Public utilities and public agencies with a legal right to place facilities in the street are excluded.

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How to Apply for a Encroachment Permit Bond:

• Submit the encroachment permit application to the Newark Engineering Division with plans or sketches showing the location and scope of work.
• Get the approved cost estimate from the city engineer, since the bond amount is based on it.
• Order a bond for the estimated cost plus 20 percent, naming the City of Newark as obligee.
• Have the applicant or the contractor performing the work sign as principal.
• File the executed bond with the city engineer before the permit is issued and pay the permit, plan check and inspection fees.
• Notify the city engineer when work begins and again when it is complete so the bond can be released.

Detailed Information About the California Encroachment Permit Bond:

When the bond applies

Chapter 12.08 of the Newark Municipal Code requires a written permit from the city engineer before anyone excavates, builds, plants, places materials or installs pipe, conduit, cable or small cell wireless equipment in a public right of way. Driveway approaches, sidewalk and curb work, utility laterals and street cuts all fall under it. Work done under contract with the city and work by city employees is exempt from the chapter.

How the amount is set

The bond is not a fixed figure. Under Section 12.08.180 it equals the cost of the work needed to meet every permit condition, as estimated by the city engineer, plus 20 percent. The Engineering Division sets a minimum on its encroachment permit page, so confirm the current floor before you order the bond. The city engineer can also demand a larger bond or deposit at any time if the one on file looks too small (Section 12.08.220).

Annual bond for repeat permittees

Section 12.08.200 lets an applicant, with the city engineer's approval, file one bond each year that covers the estimated cost plus 20 percent of the work under all permits issued that year. Contractors who do frequent right of way work in Newark should ask about this option.

What the bond guarantees

The bond must be signed by the applicant or the contractor doing the work as principal and by a surety company authorized in California, with the city named as obligee. It guarantees that every permit condition is met to the city engineer's satisfaction and that Chapter 12.08 is followed. If the work stalls, the city can finish it and recover its actual cost plus 20 percent from the principal and the surety. A written time extension does not release the surety.

After the work is done

The bond is released once all permitted work is completed and accepted. The permittee still owes one year of repairs for any street damage caused by the work under Section 12.08.310, so expect the city to hold some security through that period. Permits for encroachments that stay in the street after construction need their own cash deposit or bond under Section 12.08.210.

Eligibility and Requirements for a California Encroachment Permit Bond:

• A surety company authorized to do business in California.
• Bond amount equal to the city engineer's cost estimate plus 20 percent, or more if the city engineer requires it.
• City of Newark named as obligee.
• Work performed by a contractor licensed by the State of California.
• Credit review of the principal, which drives the premium rate.

California Encroachment Permit Bond FAQs:

Official and Additional Resources for the California Encroachment Permit Bond: