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Before anything else, get the bond amount for your encroachment permit from the Town of Surf City. With that figure in hand the bond is a quick filing, and it lets you open the right of way without tying up cash in a deposit.
The Town of Surf City requires a surety bond with an encroachment permit to dig, place utilities or otherwise work in a town street, sidewalk or right of way. The bond runs to the Town of Surf City and guarantees that the work follows the permit and that the street is restored. Get the required bond amount from the town before the bond is written.
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The bond amount is the one detail to settle first. Ask the Town of Surf City for the amount required on your encroachment permit, and order the bond in exactly that figure so it is not sent back for a rider.
North Carolina gives each city general authority and control over its public streets, sidewalks and alleys under N.C. Gen. Stat. 160A-296, including in subsection (a)(6) the power to regulate, license and prohibit digging in the streets, sidewalks or alleys. Surf City exercises that power in Chapter 16 of its Code of Ordinances, Streets and Sidewalks, where Article II governs excavations and embankments. The encroachment permit and its bond are how the town makes sure a contractor or owner who opens the right of way puts it back.
The Town of Surf City is the obligee. The bond guarantees that the permitted work is done according to the permit and town standards, and that pavement, sidewalks, shoulders and drainage disturbed by the work are restored. If the permit holder walks away or the restoration fails, the town can claim against the bond to pay for the repair. The surety pays a valid claim and then collects that amount back from the permit holder.
The party that holds the encroachment permit posts the bond. That is usually the contractor doing the work, a utility installer, or a property owner building within the right of way. The name on the bond should match the permit application exactly.
Premium is charged on the bond amount the town sets. The surety looks at the principal's credit, time in business and the kind of work being done in the right of way.
Confirm the bond amount, the required bond form and the filing steps with the Town of Surf City before the bond is written.
Ask the Town of Surf City for the amount required on your permit, then order the bond in that exact amount. Premium is charged on that figure.
N.C. Gen. Stat. 160A-296(a)(6) gives North Carolina cities the power to regulate, license and prohibit digging in streets, sidewalks and alleys. Surf City regulates excavations in Article II of Chapter 16 of its Code of Ordinances.
The Town of Surf City. If the work is left unfinished or the right of way is not restored, the town can claim against the bond to pay for repairs. You repay the surety for any claim it pays.
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