Surety Bond Encyclopedia

Mobile Car Washing License ($10,000) Bond - Calabasas, CA in California

Brief Summary

Calabasas will not issue or renew a mobile washing permit until the $10,000 bond is in place. A surety bond meets that requirement for an annual premium, so you are not leaving $10,000 in cash on deposit with the city.

Calabasas Municipal Code Chapter 8.30 requires anyone who washes vehicles for pay at customers' homes or workplaces, including fundraising car washes, to hold a mobile commercial washing permit from the Director of Public Works. Before the permit is issued or renewed, the applicant must deliver a $10,000 performance or cash bond under Section 8.30.080, in a form acceptable to the city attorney.

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How to Apply for a Mobile Car Washing License ($10,000) Bond:

  • Get the current mobile commercial washing permit application from Calabasas Public Works.
  • Complete the application, signed under penalty of perjury, with a full description of your washing operation.
  • Explain how wash water will be handled to comply with Chapter 8.28.
  • Obtain the $10,000 bond naming the City of Calabasas as obligee.
  • Sign the city's indemnification agreement.
  • Submit the application, bond and fee, then renew the permit and keep the bond in force each year.

Detailed Information About the California Mobile Car Washing License ($10,000) Bond:

This is a storm water permit, not a business license

Calabasas adopted Chapter 8.30 in 2008 to keep detergents and other pollutants out of the city's storm drains. The permit is issued by the Director of Public Works, and every permittee must comply with the city's storm water rules in Chapter 8.28. That is what the bond backs. It is not a consumer protection bond for your customers.

The chapter covers any vehicle washing done for compensation that moves from one location to another, such as serving customers at their residences or places of work. It also expressly covers temporary car wash events held for fundraising.

What Section 8.30.080 requires

Before the permit is issued or renewed, the applicant delivers a performance or cash bond of $10,000 to the satisfaction of the director. The bond secures faithful performance of the chapter and the permit, must be acceptable in form to the city attorney, and must stay in force for the life of the permit and every renewal. It runs in favor of the city only, and third parties have no right to recover against the surety. If the city makes a recovery against the bond, the amount must be restored to the full $10,000.

Other requirements that come with the permit

The permit is valid for one year from issuance and must be renewed annually. It cannot be transferred. Applicants also sign an indemnification agreement with the city under Section 8.30.090, report any change in their application details within 10 calendar days, and display the permit as the director requires. Operators using wash water recycling units must notify the director in writing of any change in disposal sites.

Customers have a stake too. Section 8.30.110 makes it an infraction to hire a mobile washing service that does not hold a valid Calabasas permit.

Application and renewal fees are set by city council resolution. Confirm the current fee, application form and bond form with the Calabasas Public Works Department before the bond is issued.

Eligibility and Requirements for a California Mobile Car Washing License ($10,000) Bond:

  • Bond amount of $10,000 under Calabasas Municipal Code 8.30.080.
  • City of Calabasas named as obligee.
  • Bond form acceptable to the city attorney.
  • Bond kept in force for the life of the permit and all renewals.
  • Bond restored to $10,000 after any recovery by the city.

California Mobile Car Washing License ($10,000) Bond FAQs:

Does a charity or school fundraising car wash need this permit?

Chapter 8.30 defines mobile commercial washing to include any temporary car wash event conducted for fund raising, so those events fall under the permit requirement.

Can I post cash instead of a surety bond?

Yes. Section 8.30.080 allows a performance or cash bond of $10,000. A surety bond lets you meet the requirement without tying up that cash.

Who can make a claim on the bond?

Only the City of Calabasas. The code states the bond is in favor of the city and does not extend a right of recovery to third persons.

How long is the permit good for?

One year from the date it is issued. It must be renewed annually, and the bond must remain in force through every renewal.

How is the premium set?

The surety prices the $10,000 bond based mainly on the owner's credit and business history. You get a quote after completing the application.

Official and Additional Resources for the California Mobile Car Washing License ($10,000) Bond:

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