City of Petaluma Encroachment Permit Bond
What is the Purpose of the Encroachment Permit Bond?
The City of Petaluma requires contractors performing encroachment work in the city to obtain an Encroachment Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Petaluma that all contracted work will be completed on time and the jobsite will be returned to its original condition.
How Much Does the Bond Cost?
Per Municipal Code 13.12.160, applicants should file with the city clerk a bond in an amount sufficent to cover all the work to be performed.
The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score.
| Bond Amount | Bond Cost* |
|---|---|
| 100% Estimated Cost of Work | 1%-7.5% |
*Prices shown are based on several factors. Not all available pricing tiers are shown. Rates do not constitute an offer of bonding and are subject to change at any time.
How Does the Permit Application Process Work With the City of Petaluma?
Contractors looking to perform excavation in the City of Petaluma must submit a written application to the Public Works Director containing the following information:
- The name and address of the applicant.
- The exact location of the proposed excavation, including sketch or plat thereof.
- The dimensions of the excavation, including the width, depth and length thereof.
- The purpose of the excavation.
- The dates when the work of excavation is to be commenced and to be completed.
- An agreement signed by the applicant to conform with all of the provisions in Municipal Chapter 13.12.
The Public Works Director will then review the application to determine eligibility for issuance.
Does CCIS File the Bond for Applicants?
City of Petaluma requires wet signatures** on filed bond documents. This means both parties must physically sign the bond prior to sending it in to the City of Petaluma. The original bond form issued by CCIS needs be mailed to or dropped off at the following location by the contractor once signed:
**Properly review bond forms to confirm if notarization is required. Failure to adhere to document requirements may lead to rejection of the bond form by the City of Petaluma.
Does This Bond Expire?
The permit bond expires upon the specified expiration date, typically one year from the date of issuance. A new permit bond will need to be purchased should the project take longer than one year.
Claims Information
If the City of Petaluma files a claim against the Encroachment Permit Bond, the Surety company will investigate the legitimacy of the claim and proceed accordingly. CCIS does not handle surety claims in office, however, claims contact information will be provided to the contractor, to move the claims process forward.
If the claim is found to be legitimate, the Surety company will payout to the City of Petaluma, up to the limit of the bond.
Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Petaluma, its laborers, and suppliers from the actions of a contractor. Contractors are responsible for their actions and therefore must reimburse the Surety company for any claims paid. Failure to do so will significantly inhibit a contractor’s ability to obtain a surety bond for future jobs.
