(A) When deemed necessary by the City Council, bid deposits shall be prescribed in the public notices inviting bids. Unsuccessful bidders shall be entitled to the return of their bid deposits upon the award of the contract by the City Council. A successful bidder shall forfeit any bid deposit required by the City Council upon failure on his/her part to enter into a contract within ten days after the award, unless an extension is granted in writing by the City Council.
(B) Such bid deposit may be in the form of a certified check, bond or letter of credit from an acceptable financial institution and in a form agreeable to the City Council in an amount specified in the advertisement for bid to insure finalization of the contract and to indemnify the city against all losses, damages and claims that may accrue against the city as a consequence of the granting of the contract.
('69 Code, § 2-220) (Ord. O-95-24, passed 4-10-95)