When deemed necessary by the purchasing officer, bidder's security may be prescribed in the public notices inviting bids.  The security shall be returned upon rejection of a bid; provided, that the successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay.  The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder.  If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
('83 Code, § 3.08.090) (Am. Ord. 1101, passed 5-17-95)