§ 18.70. Bid deposits.

At the sole discretion of the purchasing agent, a bid deposit may be required from all bidders on a bid. Every bidder shall present with the bid a certified check, payable to the city finance officer, or a corporate surety bond issued by a surety company authorized to transact business in the State of Minnesota, payable to the city. Such check or bond shall be in the amount of two (2) percent to ten (10) percent of the amount of the bidder's bid, as required by and in the discretion of the purchasing agent. Such surety bond shall be conditioned for the execution and delivery of a contract by the bidder with the city in accordance with the specifications and terms of the bid, in case the proposed contract is awarded to the bidder, and shall contain an express agreement by the bidder that upon his failure to execute and deliver a contract with the city in accordance with the bid and to furnish the required bond to secure the performance of such contract, if the contract is awarded to the bidder, such bond shall be forfeited and paid in full to the city as stipulated and liquidated damages to the city, and not as a penalty, by reason of the failure of the bidder to execute and deliver such contract and bond to the city in accordance with the bid. Any such certified check of a successful bidder shall be forfeited and paid to the city as stipulated as liquidated damages to the city, and not as a penalty, by reason of the failure of such bidder to execute and deliver a contract and bond to secure performance thereof to the city in accordance with the terms of the bid. (Code 1960, As Amend., § 471.070; Pet. No. 249854, § 44, 7-14-89; 90-Or-082, § 2, 3-16-90)