A. Receive And Open Bids: The Public Services Director, or designee, and the City Clerk shall preside at the public meeting convened to receive, open and announce the amount of the bids. The Public Services Director shall reject any and all bidders who have been deemed irresponsible and unreliable under section 1-10-16 of this chapter, based on the bidder's past work performance with the City. Each bidder shall accompany the bid with a bid security amounting to not less than ten percent (10%) of the estimated total contract cost of the public improvement, or the amount of each bid. The bid security shall be submitted in a separate sealed envelope and shall be opened by the City Clerk before the bid is disclosed. The bidder's security shall be in the form of a cashier's or certified check drawn on a bank in Iowa or a bank chartered under the laws of the United States, or a certified share draft drawn on a credit union in Iowa or chartered under the law of the United States, or a corporate surety which is satisfactory to the City.
B. Bid Security: The City Clerk shall determine the legal sufficiency of the bid security before the bidder's proposal is opened. The bid security shall contain no condition except as provided by law. All bids that are submitted with legally insufficient bid security shall be rejected and returned to the bidder by the City Clerk. Notwithstanding the foregoing, in the event the bidder fails to execute the contract as provided in the plans and specifications, or by this chapter, the full amount of the bid security shall be forfeited to the City in liquidation of damages for such failure. (Ord. 94-3, 2-15-1994)