Surety Bond Encyclopedia

Road Commission Permit Bond - Manistee County, MI in Michigan

Brief Summary

The Manistee County Road Commission does not use one bond amount for every permit. A utility installation calls for $25,000, a small private line such as a septic connection calls for $3,000, and the annual utility permit calls for $5,000. Getting the right tier on the Road Commission's own form the first time keeps the permit from stalling at the counter.

The Manistee County Road Commission requires a bond with most permits to work in a county road right of way, and the amount depends on the permit. Its fee schedule effective October 15, 2024 lists a $25,000 bond for utility and private installations, $3,000 for small private installations such as a septic line, $25,000 for seismographic and monitoring well permits, and $5,000 for the annual utility permit. The Manistee County Road Commission is the obligee.

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How to Apply for a Road Commission Permit Bond:

  • Identify the permit type first, since the bond amount depends on it.
  • Download the Road Commission's bond form from its permits page and fill in the permit holder's legal name exactly as it appears on the permit application.
  • Complete the bond application, pay the premium and receive the executed bond.
  • Gather a certificate of insurance naming the Manistee County Road Commission as additional insured.
  • Prepare the sketch or drawing required for utility and private installations.
  • File the bond, insurance certificate and permit application with the Road Commission and pay the permit fee.

Detailed Information About the Michigan Road Commission Permit Bond:

Match the bond to the permit

The Road Commission's permit fee schedule, adopted October 2, 2024 and effective October 15, 2024, ties a bond amount to each kind of permit:

  • Utility and private installations: $25,000 bond, certificate of insurance, and a sketch or drawing.
  • Small private installations, such as a septic line: $3,000 bond, certificate of insurance, and a sketch or drawing.
  • Seismographic permit: $25,000 bond.
  • Monitoring well permit: $25,000 bond and insurance.
  • Annual utility permit: $5,000 bond and certificate of insurance, or a letter of indemnification.
  • Transportation moves: $10,000 bond on file, waived for mobile homes.

The most common mistake is buying the $25,000 construction bond for a utility that only needs the annual maintenance permit, or the reverse.

The annual utility permit

The 2026 Annual Utilities Permit runs from January 1, 2026 through December 31, 2026 and carries a $275 fee. It covers maintenance of a facility, including tree trimming, and clearing trees from the road right of way. The permit holder must hold the Road Commission harmless for claims arising from the work, carry insurance for the term of the permit, and remove debris within 30 days or pay for the Road Commission to remove it. Subcontractors need their own permits.

The $25,000 construction bond form

The Road Commission's form, titled Bond to Accompany Application for Permit, binds the principal and surety to the Manistee County Road Commission in the penal sum of $25,000 for construction or maintenance of facilities within the county road right of way. The principal promises to carry out the permit as written, pay for damage to the highway surface or any highway structure, pay fines and penalties it becomes liable for, and hold the Road Commission and the County of Manistee harmless. The bond can be continued by a continuation certificate signed by the surety, and the surety can cancel with thirty days written notice to the Road Commission.

Insurance goes with the bond

The right of way permit application requires general liability insurance of at least $2,000,000 each occurrence and general aggregate, automobile liability of at least $2,000,000 combined single limit, and a certificate naming the Road Commission as an additional insured. The application also lets the Road Commission accept a cash deposit or irrevocable letter of credit in place of a bond, in a form and amount it finds acceptable.

Telecom and video providers

MCL 224.19b(9) caps the security bond or right of way bond a county road commission can require from a telecommunication or video service provider at $20,000, or $40,000 in a county with more than 250,000 residents, and limits a provider to one bond for all of its permits. Providers should raise this with the Road Commission before the bond is written.

Eligibility and Requirements for a Michigan Road Commission Permit Bond:

  • Manistee County Road Commission named as obligee.
  • $25,000 bond for utility and private installations, seismographic permits and monitoring well permits.
  • $3,000 bond for small private installations such as a septic line.
  • $5,000 bond and certificate of insurance, or a letter of indemnification, for the annual utility permit.
  • General liability of at least $2,000,000 each occurrence and aggregate, and automobile liability of at least $2,000,000 combined single limit.

Michigan Road Commission Permit Bond FAQs:

Which bond amount applies to my permit?

It depends on the permit. The Road Commission's fee schedule effective October 15, 2024 lists $25,000 for utility and private installations, $3,000 for small private installations such as a septic line, $25,000 for seismographic and monitoring well permits, $5,000 for the annual utility permit, and $10,000 for transportation moves.

Can a utility use a letter of indemnification instead of the $5,000 bond?

Yes, for the annual utility permit. The fee schedule lists a $5,000 bond and certificate of insurance, or a letter of indemnification.

How long does the annual utility permit last?

The 2026 Annual Utilities Permit runs from January 1, 2026 through December 31, 2026. The fee is $275 per year, and a new permit is taken out each calendar year.

Does the bond renew or do I need a new one?

The Road Commission's $25,000 form has an expiration date filled in by the parties and can be continued with a continuation certificate signed by the surety. The surety can cancel it with thirty days written notice to the Road Commission.

We are a telecom provider. Is the $25,000 figure binding on us?

MCL 224.19b(9) caps the bond a county road commission can require from a telecommunication or video service provider at $20,000, or $40,000 in a county with more than 250,000 residents, and allows only one bond for all permits. Raise this with the Road Commission before the bond is written.

Road Commission Permit in Other Michigan Locations

Kent County, MIWashtenaw County, MI

All Manistee County, MI bonds · All Michigan surety bonds