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materials for a period of one year after initial acceptance of the entire work by City. Subdivider shall repair <br />or replace any or all such work or material, together with all or any other work or materials which may be <br />displaced or damaged in so doing, that may prove defective in workmanship or material within said one year <br />guarantee period without expense or charge of any nature whatsoever to City. Subdivider further covenants <br />and agrees that when defects in design, workmanship and materials actually appear during the guarantee <br />period, and have been corrected, the guarantee period shall automatically be extended for an additional year <br />to insure that such defects have actually been corrected. <br />In the event the Subdivider shall fail to comply with the conditions of the foregoing guarantee <br />within thirty (30) days time, after being notified of the defect in writing, City shall have the right, but shall <br />not be obligated, to repair or obtain the repair of the defect, and Subdivider shall pay to City on demand all <br />costs and expense of such repair. Notwithstanding anything herein to the contrary, in the event that any <br />defect in workmanship or material covered by the foregoing guarantee results in a condition which <br />constitutes an immediate hazard to the public health, safety, or welfare, City shall have the right to <br />immediately repair, or cause to be repaired, such defect, and Subdivider shall pay to City on demand all <br />costs and expense of such repair. The foregoing statement relating to hazards to health and safety shall be <br />deemed to include either temporary or permanent repairs which may be required as determined in the sole <br />discretion and judgment of City. <br />If City, at its sole option, makes or causes to be made the necessary repairs or replacements or <br />performs the necessary work, Subdivider shall pay, in addition to actual costs and expenses of such repair or <br />work, fifty percent (50%) of such costs and expenses for overhead and interest at the maximum rate of <br />interest permitted by law accruing thirty (30) days from the date of billing for such work or repairs. <br />19. Subdivider Not Agent of City. Neither Subdivider nor any of Subdivider's agents or contractors <br />are or shall be considered to be agents of City in connection with the performance of Subdivider's <br />obligations under this Agreement. <br />20. Notice of Breach and Default. If Subdivider refuses or fails to obtain prosecution of the work, <br />or any severable part thereof, with such diligence as will insure its completion within the time specified, or <br />TRACT MAP 7053 RYLAND WOODCREEK <br />SUBDNISION IMPROVEMENT AGREEMENT (PRIVATE IMPROVEMENT) <br />G:\ LD\ Maps\TM 7053\SUBIMPAGRprivate.doc <br />Page 11 of 16 <br />