A. Authority. The Public Works Director or the Purchasing Agent shall have authority to require a bid, performance, payment, or other bond as deemed necessary to protect the best interest of the city. The form and the amount of any required bond shall be described in the solicitation.
B. Return or forfeiture of bid bond. Offerors shall be entitled to return of bid security; provided that a successful offeror shall forfeit its bid bond upon refusal or failure to execute the contract within ten (10) days after the notice of award has been issued. If the purchase is awarded to another offeror, then the amount of the lowest offeror’s bid bond shall be applied by the city to the contract price differential between the lowest offer and the awarded offer, and any surplus shall be returned to the lowest offeror. If all offers are rejected and the solicitation is reissued, then the amount of the lowest offeror’s bid bond may be used to offset the cost of receiving new offers, and any surplus shall be returned to the lowest offeror.
(Ord. 1198, passed 11-21-17)