Minnesota Administrative Rules

7819.3000 CONSTRUCTION PERFORMANCE BOND.

Subpart 1.

Authority to require performance bond.

At the time of application for an excavation permit, the local government unit may require a right-of-way user who elects to restore the right-of-way to post a construction performance bond, as defined in part 7819.0100, subpart 6.

A local government unit does not need to provide a construction performance bond to ensure the restoration of streets following its own excavation.

Subp. 2.

Amount.

The security provided by a construction performance bond must cover an amount reasonably estimated to restore the right-of-way to the condition that existed before the excavation, and may also include reasonable, directly related costs that the local government unit estimates will be incurred if the right-of-way user fails to perform under the bond. Litigation costs and attorney fees are not direct costs to be included in calculating the amount of the bond.

Subp. 3.

Term.

If, 24 months after completion of the restoration of the right-of-way, the representative of the local government unit determines that the right-of-way has been properly restored, the surety on the construction performance bond must be released.

Statutory Authority:

MS s 237.163

History:

23 SR 2004

Published Electronically:

November 14, 2003