Surety

Garden City Surety Application

This guide outlines the process for submitting a surety to Garden City for outstanding development improvements. Sureties are required to guarantee completion of certain improvements and are subject to review and approval by the city.

  • Applicable Improvements: Only non-life safety improvements qualify for surety.
  • Departments: Sureties may be required by either Development Services or Public Works, depending on the nature of the improvements.  They are required to be separate sureties.

You must submit the following:

  1. Surety Form: Complete the city's Surety Agreement form.
  2. Improvement List: Provide a detailed list of all outstanding applicable improvements. Include:
    • Type of work
    • Quantity (e.g., square feet, lineal feet)
    • Reference to approved plan pages and dates
  3. Cost Estimates: Submit three complete bids or a signed contract for the work.
    • Bids must be from verifiable businesses.
    • Must state how long the bid is valid (minimum 90 days beyond the surety completion date).
    • Must reference approved plans.

The city will review your submission to:

  • Determine the required surety amount (minimum 125% of the estimated cost).
  • Review your financial guarantee, which must be one of the following:

    • Option A: Cash in Trust

      • Submit directly to the city.

      Option B: Irrevocable Letter of Credit*

      • Must name Garden City as the grantee.
      • Must be from an FDIC-backed bank with a local branch.
      • Must be irrevocable and expire no less than 45 days after the surety agreement.

      Option C: Surety Bond*

       Name Garden City as Grantee;

      • Be duly authorized to conduct the business of insurance in Idaho;
      • Have an A.M. Best minimum Financial Strength Rating of Excellent;
      • Have an A.M. Best Financial size category of no lower than Category VIII ($100-$250 million policyholder surplus);
      • Be on the U.S. Department of the Treasury’s list of acceptable surety companies on federal bonds under 31 U.S.C. 9304-9308; and
      • Expire not less than 45 days after the Surety Agreement.

       

*Original documents must be submitted to the city.

  • Once the fee and financial guarantee are approved, the city will draft a Surety Agreement.
  • You will need to sign and return the agreement.

  • Once improvements are installed, request an inspection from the city.
  • Upon successful inspection, the surety will be released.

  • If only some improvements are completed, you may request a one-time reduction in the surety amount.
  • This is subject to city approval and inspection.