7-12-4145. Procedure for dealing with bid securities. (1) If bids are rejected, the city council shall return to the proper parties the bid securities corresponding to the rejected bids.

(2) The bid securities accompanying the accepted proposals or bids must be held by the city clerk of the city until the contract for doing the work has been entered into, either by the lowest bidder or by the owners of over 75% of the frontage, at which time the bid security must be returned to the bidder.

(3) If the bidder fails, neglects, or refuses to enter into the contract to perform the work or improvements, then the bid securities accompanying the bid must be declared to be forfeited to the city and must be collected by the city and paid into the general fund.