(a) Prior to the commencement of construction within a tract or block of a residential planned unit development, the developer shall file with the city the following contracts and bonds:
(1) A performance, labor and material payment bond for the completion of the construction within one year from the date of commencement of construction of all public improvements specified in the final development plan.
(2) A performance, labor and material payment bond for the completion of the construction within one year from the date of commencement of construction of all common open areas designated in the final development plan.
(3) A maintenance warranty bond in the amount of ten percent of the total cost of the construction of all public improvements to be in force for a period of two years following acceptance by the city of the final construction of public improvements.
(4) In lieu of any bond, the developer may use an escrow account to ensure the performance of the construction as planned if such account and the administration thereof is approved by the city council.
(b) Performance bonds may only be accepted for public improvements or for the following private improvements: streets, drainage and common usable open space. All such bonds shall be from a company licensed as a surety in the state, listed by the U.S. Treasury Department and rated A:AAA in Best's Insurance Guide. Upon acceptance of all improvements described in subsections (a)(1) and (2) of this section, the performance and payment bonds shall be released.
(c) All of the sections relating to bonding contained in chapter 98 of this code pertaining to subdivisions shall be fully applicable to the bonds required under this section.