San Luis Obispo County, CA – Water Well Driller Bond

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San Luis Obispo County, CA – Water Well Driller Bond

In order to obtain a well drilling permit and activate their business licenses, the County of San Luis Obispo requires local businesses to post the San Luis Obispo County, CA – Water Well Driller Bond. These standards are necessary to guarantee that the public will be compensated in the event that licensed enterprises commit any licensing breaches, such as causing damage to public grounds, while working on the project.

That means before any public activity that has the potential to impair public property or safety, such as well drilling, the firms participating are required to post a bond with the California Department of Insurance to guarantee that they will pay for any damages that may occur. The San Luis Obispo County, CA – Water Well Driller Bond ensures that permittees and developers will follow all of the engineering requirements, as well as comply with the county’s rules, and provide the desired results at the expected level of quality.

How It Works

A surety bond provider that is approved by the California Department of Insurance is required to be able to issue the San Luis Obispo County, CA – Water Well Driller Bond. The principal, also known as the permit applicant or firm, the obligee, also known as the County of San Luis Obispo, and the surety/bond company, also known as the obligor are the parties to the agreement.

In the event that the principal fails to provide the agreed-upon services or violates any license requirements, the surety company will stand behind the payments that the obligee is entitled to receive (the performance bond). The surety company is responsible for collecting and evaluating the legitimacy of all public claims, which may only add up to the whole amount of the punitive sum that was stipulated in the bond form. The principal is responsible for reimbursing the surety company for any and all costs incurred.

An indemnification agreement ensures that the permit application or licensed company will be responsible for the full repayment of any claims, which includes the payment of any associated legal expenses and premiums. This keeps the bond company protected. This understanding needs to be reached prior to the issuance of the San Luis Obispo County, CA – Water Well Driller Bond.

Applications for permits must be filed to the County Health Officer in accordance with Section 8.40.040 of the Municipal Code and must contain the following information:

A plot layout that pinpoints the precise position of the well in relation to the following landmarks and structures that are located within a radius of two hundred feet of it:
- Boundaries of a property.
- Systems or works for the disposal of sewage, including those that transport or hold sewage or industrial waste.
- All water bodies and water streams, whether they are temporary or permanent, naturally occurring or man-made.
- The property’s drainage arrangement and layout.
- Existing wells.
- Roads that provide access.
Description of the property’s location, including the township, range, and section numbers, as well as the assessor’s parcel number.
The name of the general contractor who will be responsible for building the well.
The depth of the well as estimated or hypothesized.
Any additional information that may be required in order to assess whether or not subsurface waters will be protected.

Purpose

Contractors that want to work on wells in San Luis Obispo County are required to get a San Luis Obispo County, CA – Water Well Driller Bond from the county. This requirement is imposed by the county. The bond is a financial assurance given to the County of San Luis Obispo by the contractor and the issuing surety business that all contractual work will be finished on schedule and that the worksite will be restored to its original state. The County of San Luis Obispo is entitled to receive the bond after it has been paid in full.

Bond Amount

Every applicant for a permit is required to submit or already have on file with the health officer a corporate surety bond in the amount of twenty-five thousand dollars ($25,000.00), as stipulated by Section 8.40.040 of the Municipal Code.

The cost of the bond for the contractor ranges from 1% to 7.5% of the total project cost on average, depending on the contractor’s personal credit score.

Frequently Asked Questions

Does This Bond Have a Term Limit?

When the San Luis Obispo County, CA – Water Well Driller Bond reaches its expiry date, which is normally one year from the day it was issued, it is considered null and void. In the event that the project takes more than a year to complete, you will be required to acquire a new permission bond.

What Happens if a Claim Is Made?

In the event that the County of San Luis Obispo submits a claim against the Well Driller Permit Bond, the surety firm will evaluate the validity of the claim and act in accordance with the results of their findings. Claims against surety companies are not processed at the CCIS office. Nevertheless, the contractor will be given information on how to contact claims administrators in order to move the claims process forward. In the event that the claim is validated, the surety firm will make a payment to the County of San Luis Obispo in the amount that is equal to the maximum payout of the bond.