If any Offeror to whom a contract is awarded under the provisions of this Charter shall fail to file any required bond within 10 working days after receiving notice to file such bond, the Purchaser may deposit any security required to be filed under the provisions of Section 21.11 of this Chapter in the treasury for collection. The amount thereof shall be retained by the City as liquidated damages for failure of the Offeror to file such bond. Neither the deposit nor the proceeds thereof shall be returned to such defaulting Offeror; provided, however, that upon the recommendation of the department utilizing the Commodities or Services to be provided under the contract, the Purchaser may approve the return of the amount of the Bid security to excuse a forfeiture under such Bid security.
Demand upon an Offeror to file a bond, as hereinbefore set forth, may, at the option of the Purchaser, be made by mail or by facsimile, addressed to the Offeror on whom it is to be served, at his or her mailing address or facsimile number, as set forth by the Offeror in the Offer. The service is complete at the time of deposit in the mail or machine confirmation of the facsimile, and the 10-day period shall commence on the first day following such deposit in the mail.
The Purchaser shall have the authority to extend the period for the deposit of any required bond, except a Bid bond, whenever in the Purchaser’s judgment, circumstances warrant an extension.
In all cases of forfeiture hereunder, the amount of the forfeiture after collection by the City shall be entered as a credit to the General Fund.
(Added by Ord. 156-99, File No. 990743, App. 6/2/99)