(a) The bid bond, certified or cashier’s check shall be forfeited and the principal amount of the bid bond shall be paid to the City, or the check shall be surrendered to the City as the agreed amount of liquidated damages in case of failure to enter into contract for the work bid upon. The bid bond or check shall be released or returned to the bidder in case his or her bid is rejected.
(b) In case his or her bid is accepted, the bid bond or certified or cashier’s check shall be returned after the contract has been signed and the performance bond has been furnished to and approved by the City. The bid bond or certified or cashier’s check of the next lowest responsible bidder shall be retained until the lowest responsible bidder has signed and secured the performance of his or her contract, or if he or she fails to do so, the bid bond or check shall be further retained until the second lowest responsible bidder has signed and properly secured the contract awarded to him or her. In default thereof, the bid bond or certified or cashier’s check shall be forfeited to the City as liquidated damages.
(Ord. No. 1236-60. Passed 6-20-60, eff. 6-22-60)