County of San Luis Obispo County Well Driller Permit Bond

What is the Purpose of the County Well Driller Permit Bond?

The County of San Luis Obispo requires contractors performing construction on wells in the County to obtain a Well Driller Permit Bond. The bond represents a financial guarantee by the contractor and the issuing surety company to the County of San Luis Obispo 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 8.40.040, every applicant for a permit shall file or have on file with the health officer, a corporate surety bond in the sum of twenty-five thousand dollars ($25,000.00).

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 County of San Luis Obispo?

Per Municipal Code 8.40.040, applications for permits should be submitted to the County Health Officer and included the following:    

1. A plot plan indicating the exact location of the well with respect to the following items within a radius of two hundred feet of the well:
   1. Property lines.
   2. Sewage disposal systems or works carrying or containing sewage or industrial wastes.
   3. All intermittent or perennial, naturally or artificial water bodies of water courses.
   4. Drainage pattern of the property.
   5. Existing wells.
   6. Access roads.
2. Location of the property (include township, range, section, and assessor’s parcel number).
3. Name of the contractor that will build the well. 
4. Estimated or proposed depth of the well.
5. Use of the well.
6. Other information that may be necessary to determine if underground waters will be protected. 

Does CCIS File the Bond for Applicants?

County of San Luis Obispo requires wet signatures** on filed bond documents. This means both parties must physically sign the bond prior to sending it in to the County of San Luis Obispo. 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 County of San Luis Obispo.

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 County of San Luis Obispo files a claim against the Well Driller 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 County of San Luis Obispo, up to the limit of the bond. 

Unlike insurance policies that protect contractors from unforeseen events, this bond protects the County of San Luis Obispo, 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.