(A) Prior to acceptance by the Board of any new streets constructed pursuant to a street construction permit, the permit applicant shall provide a maintenance bond, which bond shall:
(1) Show the applicant or some other person satisfactory to the Board as principal and run jointly and severally to the City of Lawrence and the Board;
(2) Be in an amount equal to 20% of the cost, as estimated by the Board, of all improvements and installations as required by this code;
(3) Provide surety satisfactory to the Board;
(4) Warrant the workmanship and all materials used in the construction and installation of the improvements and installations to be of good quality and that they have been constructed and completed in a workmanlike manner in accordance with the requirements and specifications of this code and the plans and specifications thereof submitted and approved by the Board; and
(5) Provide that for a period of three years after the installations and improvements have been completed and accepted for public maintenance by the Board, the applicant will, at his or her own expense, make all repairs to the installations and improvements which may become necessary by reason of improper workmanship or materials, but not including any damage to the improvements or installations resulting from or occasioned by the inadequacy of the requirements and specifications of this code.
(B) Any funds received from the performance or maintenance bonds required by this chapter shall be used only for the purpose of making the improvements, installations or repairs to the improvements and installations for which the bonds were provided in accordance with the requirements of this chapter.