Knowledgebase-Right-of-Way Bond


Information Product

Title:Right-of-Way Bond
Summary:The municipal codes of six cities were surveyed to identify how the cities handle the right-of-way excavation bond and surety.
Original Author:Darden, Ron
Co-Author:
Product Create Date:07/09/2004
Last Reviewed on::05/11/2010
Subject:Right of way; Liability; Fines and court costs; Streets--Cuts and excavation
Type:Survey
Original Document: Right-of-Way Bond.pdf

Reference Documents:

Text of Document: Right-of-Way Bond.doc

July 9,2004

Ms. Alexis J. Crawford, City Court Clerk
City of Farragut
11408 Municipal Center Drive
Farragut, Tennessee 37922

Re: Right-of-way Bond

Dear Ms. Crawford

Following is the right-of-way excavation bond and surety survey results taken from the municipal codes of each listed city:

Knoxville-a permit is required to perform work in the right-of-way. The department of engineering may require a bond or certificate of insurance with good and sufficient sureties, conditioned to secure the city and third parties against all loss, damage or injury of any kind. The permit fee is $5.00. A deposit is required in the amount of $15.00 per each 20 sq. yds. or less for work in pavement or sidewalks. If it exceeds 20 sq. yds. an additional 50 cents per sq. yd. is added. A deposit is required in the amount of $5.00 per each 20 sq. yds. or less for work in dirt or gravel. If it exceeds 20 sq. yds. an additional 15 cents per sq. yd. is added.

Oak Ridge-a permit is required from the city manager to perform work in the right-of-way. The ordinance provides that the city manager shall require bond or a corporate surety bond in the amount of the total cost of the work to be done.

Johnson City-a written permit is required from the city manager to perform work in the right-of-way. The city manager shall impose restrictions and limitations as he shall see fit. If the repair requires maintenance within 6 months, the city gives a notice. If the repair has not been made the city repairs and bills the contractor. A bond is required in the amount of not less than $1,000 nor more than $10,000.

Kingsport-a written permit from the director of public works is required to perform work in the right-of-way. A bond in the amount of $1,000 is required to save the city harmless or the deposit of a sufficient amount of cash with the city recorder as will, in the opinion of the director, cover the cost of repairing the street to its condition prior to the excavation.

Athens-a permit is required to perform work within the right-of-way. The permit fee is set by resolution. The city requires proof of liability insurance and a deposit is required in an amount determined by the city manager or his designee.

Maryville-a permit is required to perform work within the right-of-way. The permit fee is set by resolution. A deposit is required in an amount determined by the city manager or his designee.

While most cities in Tennessee require permits and surety deposits for work performed in the rights-of-ways, it is important that they be properly insured while performing the work with the city’s permission. There are lots of expensive infrastructure installed within the city right-of-way. What would be the city’s liability if a contractor working with city permission on the right-of-way accidentally cut a fiber optics cable or a telephone main trunk line?

I hope this information is helpful. Thank you for consulting with MTAS.

Sincerely

Ron Darden
Municipal Management Consultant