City of Larkspur Encroachment Permit Bond

What is the Purpose of the Encroachment Permit Bond?

The City of Larkspur requires contractors performing construction involving encroachment work to obtain an Encroachment Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the City of Larkspur 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 15.32.055, the Superintendent of Public Works will determine an amount necessary to cover such costs for proper compliance by permittee with the provisions of Chapter 15.32 of the City of Larkspur Municipal Code. 

The bond cost for the contractor is typically between 1%-7.5% depending on the contractor’s personal credit score.

*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 Larkspur?

Before starting work on any encroachment projects in Larkspur, contractors are required to apply for an encroachment permit. Prior to the issuance of any encroachment permit, the following insurance requirements must be met:

1. Comprehensive General Liability insurance in amounts no less than $1,000,000 combined single limit applying to bodily injury, personal injury and property damage are required.
2. The City of Larkspur must be named as an additionally insured on a separate certificate/endorsement sheet that modifies the general liability policy.

Does CCIS File the Bond for Applicants?

City of Larkspur 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 Larkspur. 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 Larkspur.

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 Larkspur 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 Larkspur, up to the limit of the bond. 

Unlike insurance policies that protect contractors from unforeseen events, this bond protects the City of Larkspur, 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.