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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 /> TRACT MAP 7183 <br /> SUBDIVISION IMPROVEMENT AGREEMENT (PUBLIC IMPROVEMENT) <br /> P:\TM\TM7183 \ I.AGR <br /> PAGE 11 OF 16 <br />