When deemed necessary by the director of finance, bidder's security shall be required
by the notice inviting bids. All bids submitted pursuant thereto shall be accompanied
by cash or its equivalent, in an amount equal to 5 percent of the bid. If the bidder
to whom the contract is awarded shall for 15 days after the award fail or neglect
to enter into the contract and file the required bond, the city may deposit in its
treasury the bid security. When so deposited, under no circumstances shall it be returned
to the defaulting bidder. In lieu of the foregoing, any bid may be accompanied by
a surety bond in said amount furnished by a surety authorized to do a surety business
in the state guaranteeing that the bidder will enter into the contract and file the
required bond or bonds within said period. Any person may file with the city an annual
bid bond, which shall be a surety bond in the amount of 5 percent of the highest amount
bid during the period of the bond.
