(A) At the time the plans of the public improvement are approved as provided in this chapter, a performance bond shall be furnished, with corporate surety licensed to do business in the state, in a sum equal to 100% of the estimated construction cost of the improvement in favor of the city and conditioned as follows:
(1) Providing that the improvement shall be made according to the approved plans and without unnecessary delay;
(2) Providing the payment of all labor and material going into the improvement shall be fully paid; and
(3) Holding the city harmless against all claims for injuries of persons and damaged property arising from or growing out of the construction work.
(B) In addition to the performance bond, there shall be filed with the city a good and sufficient maintenance bond, with corporate surety licensed to do business in the state, in a sum equal to 100% of the cost of construction of the improvement for the first year and 15% of the cost of construction of the improvement for each subsequent year, in order to guarantee the proper maintenance and operation of the improvement, for the following periods of time.
(1) For the construction of any addition or extension to water or sewer systems to the city, the bond shall be for a period of two years from and after acceptance of the improvement by the City Council.
(2) For the construction of any pavements in the city, the bond shall be for a period of five years from and after the date of acceptance of the improvement by the City Council.
(C) All bonds required in this section shall be approved by the City Attorney.
(Prior Code, § 15-209) (Ord. 1292, passed 6-19-84; Am. Ord. 1974, passed 8-6-19)