Street Opening Permit ($3,000) Bond - Borough of Medford Lakes, NJ in New Jersey

Brief Summary

Medford Lakes asks for cash up front on every street opening. This bond is the way around that. Once the Borough Attorney approves it, a single $3,000 bond can stand in for the Class A deposit on any number of your opening permits for at least 18 months, so your money is not sitting with the Borough Clerk waiting for each restoration to pass inspection.

Under Chapter 206 of the Medford Lakes Borough Code, anyone excavating in or breaking up a Borough street needs a written permit and a deposit set by the Section 112-5 fee schedule. Section 206-7 allows a surety bond in lieu of that deposit at twice the deposit amount. The fee schedule lists $1,500 for a Class A street opening, so the bond for a paved Class A street is $3,000, written by a surety authorized in New Jersey and conditioned on proper restoration of the street.

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How to Apply for a Street Opening Permit ($3,000) Bond:

• Identify the street class at the opening location, since the Class A, B and C and unimproved deposits differ.
• File a request with the governing body for permission to post a bond in lieu of the cash deposit.
• Obtain a bond for twice the deposit, which is $3,000 for a Class A street, from a surety authorized in New Jersey.
• Submit the bond for Borough Attorney approval as to form, sufficiency and execution.
• File the street opening permit application with the Borough Clerk or designee and pay the $250 nonrefundable permit fee.
• Provide proof of the liability insurance required by Section 206-8.

Detailed Information About the New Jersey Street Opening Permit ($3,000) Bond:

The $3,000 figure is a doubled deposit

Most people assume $3,000 is a flat bond amount. It is not. Section 206-6 of the Borough Code sends the deposit amount to the fee schedule in Section 112-5, and Section 206-7 says a bond filed in lieu of cash or certified check "shall be twice the amount of the specified deposit." The fee schedule lists these street opening amounts:

• Class A street opening: $1,500, so a bond of $3,000
• Class B street opening: $1,000, so a bond of $2,000
• Class C street opening: $500, so a bond of $1,000
• Unimproved street: $200, so a bond of $400

Section 206-2 defines Class A as any street surfaced with asphalt, concrete, bituminous concrete or similar hard surfaced pavement. Class B is stone or slag compacted by power roller or bound with bituminous or asphalt binder. Class C is a light coat of stone or oil, untreated macadam, or oil treated gravel or cinder. Unimproved covers cinder, dirt or gravel streets without oil treatment. The $3,000 bond on this page matches the Class A amount for asphalt or concrete paved streets.

How the bond works

A bond is not automatic. The applicant files a request with the governing body for permission to post a bond instead of cash. The bond must come from a bonding or surety company authorized to do business in New Jersey, it is conditioned on restoring the surface and foundation of the street in the manner the article requires, and it must remain in force for not less than 18 months. One bond may cover any number of separate applications by the same applicant. Permits can issue without the cash deposit once the Borough Attorney approves the bond as to form, sufficiency and execution.

The rest of the permit

The permit itself carries a $250 nonrefundable fee under Section 112-5 and is valid for 30 calendar days from issuance, with extensions on written request. No deposit is charged for tunneling that does not injure the street surface. The applicant must also show liability insurance of at least $300,000 for injury to one person, $1,000,000 for injuries to more than one person in the same incident, and $100,000 aggregate property damage for a single incident.

Eligibility and Requirements for a New Jersey Street Opening Permit ($3,000) Bond:

• Borough of Medford Lakes named as obligee.
• Bond conditioned on restoration of the surface and foundation of the opened street.
• Bond term of not less than 18 months.
• One bond may cover multiple applications by the same applicant.
• Insurance of $300,000 per person, $1,000,000 per incident and $100,000 aggregate property damage, including completed operations.
• Permit valid for 30 calendar days from issuance unless extended on written request.

New Jersey Street Opening Permit ($3,000) Bond FAQs:

Official and Additional Resources for the New Jersey Street Opening Permit ($3,000) Bond: