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that when defects in design, workmanship and materials actually appear during the guarantee period, and have <br />been corrected, the guarantee period shall automatically be extended for an additional year to insure that such <br />defects have actually been corrected. <br />In the event the Subdivider shall fail to comply with the conditions of the foregoing guarantee within <br />thirty (30) days time, after being notified of the defect in writing, City shall have the right, but shall not be <br />obligated, to repair or obtain the repair of the defect, and Subdivider shall pay to City on demand all costs and <br />expense of such repair. Notwithstanding anything herein to the contrary, in the event that any defect in <br />workmanship or material covered by the foregoing guarantee results in a condition which constitutes an <br />immediate hazard to the public health, safety, or welfare, City shall have the right to immediately repair, or <br />cause to be repaired, such defect, and Subdivider shall pay to City on demand all costs and expense of such <br />repair. The foregoing statement relating to hazards to health and safety shall be deemed to include either <br />temporary or permanent repairs which may be required as determined in the sole discretion and judgment of <br />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 interest <br />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 obligations <br />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 />any extension thereof, or fails to obtain completion of said work within such time, or if Subdivider should be <br />adjudged as bankrupt, or should make a general assignment for the benefit of Subdivider's creditors, or if a <br />receiver should be appointed, or if Subdivider, or any of Subdivider's contractors, subcontractors, agents or <br />employees should violate any of the provisions of this Agreement, the City Engineer may serve written notice <br />TRACT MAP 8519 <br />SUBDIVISION IMPROVEMENT AGREEMENT <br />G:\- PROJECTS -\San Leandro - MapleLane (Manor Bowl)\City\Planning\Subdivision Improvement Agreement 903 Manor (CAO Edit <br />7.22.21)_ac AJ edit 8.11.21.docx <br />PAGE 12 OF 20 <br />