Street Opening Bond - City of Milford, CT in Connecticut

Brief Summary

In Milford the street opening bond is filed once with your right-of-way license, not with each permit. Get it in place before you apply to the Director of Public Works and every excavation permit you pull that license year rides on it. You pay a premium instead of tying up cash, and the bond form goes straight into your license application.

Under Section 20-72 of the Milford Code, only a licensed contractor or a public utility company may work in a city right-of-way. Before the Director of Public Works grants that license, the contractor files a surety bond of up to $10,000 from a company authorized to do business in Connecticut, along with a certificate of liability insurance naming the City. Licenses expire June 30 following issuance, and cancelling the bond automatically suspends the license.

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How to Apply for a Street Opening Bond:

• Confirm with Public Works the bond amount the Director requires, up to $10,000.
• Apply to the Director of Public Works for the right-of-way license under Section 20-73.
• File the surety bond from a company authorized to do business in Connecticut.
• File a certificate of liability insurance naming the City of Milford as a named insured.
• File your business address with the Director and report any change.
• Certify that one backhoe, one dump truck and two barricades are available for after-hours emergency work.
• Pay the $25 license fee, then pull a $50 permit for each opening or excavation.

Detailed Information About the Connecticut Street Opening Bond:

The bond belongs to the license, not the permit

Milford splits street work into two steps. First a contractor obtains a right-of-way license from the Director of Public Works under Chapter 20, Article III, Division 2 of the City Code. Then, for each job, the contractor pulls an opening or excavation permit under Section 20-78. The surety bond is a prerequisite to the license, under Section 20-74(2), in an amount of up to $10,000. Many contractors expect to post a new bond for each permit and are surprised to find the requirement attaches at the license stage.

Milford also lists a separate Blanket Right of Way bond. The ordinance text does not explain how the two are applied, so ask Public Works which instrument the Director wants on file before you order a bond.

Who is exempt

Public utility companies are exempt from the license bond under Section 20-74(2) because state statute already covers them. They are not exempt from the permit requirement in Section 20-78. State highways fall outside the city permit, and work in Woodmont borough streets needs a permit from the borough's Warden and Burgesses.

What else you must have

The bond is not the only money on the line. Section 20-61(12) requires a $1,500 cash deposit held at all times to cover street opening repair costs. If that account drops to 50 percent or less, no new permits issue until it is restored. Section 20-74(3) adds a certificate of liability insurance showing the City as a named insured, with minimums including $2,000,000 general aggregate, $500,000 combined single limit auto, and property damage of up to $250,000 as the Director requires.

The permittee also stays responsible for trench settlement for two years from the excavation date under Section 20-61(9), and where 65 percent or more of a paved surface is destroyed, the Director may repave the whole area and collect from the permittee or its surety.

How premium is set

Premium on a license bond like this depends on the bond amount the Director sets within the $10,000 cap and on the owner's credit and work history. Confirm the current bond form and filing steps with the Milford Department of Public Works before the bond is issued.

Eligibility and Requirements for a Connecticut Street Opening Bond:

• Surety company authorized to do business in Connecticut.
• Bond amount of up to $10,000 under Milford Code Section 20-74(2).
• A $1,500 cash deposit maintained for street opening repairs under Section 20-61(12).
• Insurance meeting the Section 20-74(3) minimums.
• License renewal by June 30 each year under Section 20-77.

Connecticut Street Opening Bond FAQs:

Official and Additional Resources for the Connecticut Street Opening Bond: