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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
The Bay County Road Commission can require security before it issues a permit for work in a county road right of way, and it publishes its own Bond for Work in the Right-of-Way form for that purpose. A surety bond meets that requirement without tying up cash, and it is written on the Road Commission's form so it matches what the permit agent expects to see.
Anyone who will construct, operate, maintain or remove a facility inside a Bay County road right of way needs a permit from the Bay County Road Commission under MCL 224.19b. This bond is the security behind permits for operation and maintenance work on facilities already in place. The Bay County Road Commission is the obligee. Confirm the current amount and form with the Road Commission's permit agent before the bond is issued.
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MCL 224.19b(1) says no person, partnership, association, corporation or governmental entity may construct, operate, maintain or remove a facility, or do any other work, inside the right of way of a county road without first getting a permit from the county road commission. Crews servicing lines, pipes and other facilities that are already in the ground are covered, not just new installations. The statute carves out two things: sidewalk installation and repair, and work by the adjacent property owner that is incidental to maintaining the right of way outside the shoulder and roadway.
If the permit holder is a telecommunication provider or video service provider, MCL 224.19b limits what the Road Commission can ask for. It may not require more than one security bond or right of way bond to cover all of the provider's permits, it may not insist that the bond be a cash bond, and the bond amount may not exceed $20,000, or $40,000 in a county with more than 250,000 residents. An irrevocable letter of credit from a state or federally regulated financial institution licensed to do business in Michigan can be used instead of the bond. On the provider's request, the Road Commission must return the bond within 120 days after the provider completes construction. A provider also cannot be required to get a permit for routine maintenance or repair more than once a year.
Those caps are written for telecommunication and video service providers only. For every other permit holder, the amount on the Road Commission's bond form controls.
Since May 3, 2021 the Bay County Road Commission has processed utility, residential driveway, commercial driveway and land division permits only through the Oxcart online permit system. Once a permit is approved, the applicant receives an emailed invoice that must be paid by charge card before the permit can be viewed, and Oxcart adds its own convenience and card processing charges. The Road Commission's permits page also posts its General Permit Rules and Policies, the Right of Way Permit Fee Schedule, the Right of Way Insurance Requirements and the Bond for Work in the Right-of-Way form. Questions go to the permit agent at permitagent@baycountyroadmi.gov or 989-686-4610, option 3.
The bond backs your promise to the Bay County Road Commission that work in the right of way will follow the permit and the Road Commission's rules, and that the road and right of way will be restored if your work disturbs them. If you do not hold up your end, the Road Commission can make a claim on the bond, and the surety will look to you to repay anything it pays out.
Yes. MCL 224.19b(1) requires a permit to operate or maintain a facility in a county road right of way, not only to build one. The only carve outs are sidewalk installation and repair, and incidental maintenance by the adjacent property owner outside the shoulder and roadway.
The Bay County Road Commission sets the amount on its Bond for Work in the Right-of-Way form. If you are a telecommunication or video service provider, state law caps the bond at $20,000, or $40,000 in a county with more than 250,000 residents. Confirm the current amount with the permit agent before the bond is issued.
No. Under MCL 224.19b a county road commission may not require a provider to have more than one security bond or right of way bond to secure all of the permits it issues to that provider.
For telecommunication and video service providers, yes. The statute allows an irrevocable letter of credit from a state or federally regulated financial institution licensed to do business in Michigan. Other permit holders should ask the Road Commission what alternatives it accepts.
Yes. MCL 224.19b(4) says the Road Commission may not refuse a government entity's permit for its own facility if security is given by the permittee or its contractor sufficient to restore the road and adjacent right of way to a condition reasonably equal to or better than before.
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