A. Warranty Guarantee Required. A warranty guarantee is required prior to City acceptance for ownership and operation of public improvements installed or constructed by the developer. The warranty guarantee may be provided in the same manner as performance guarantees or by continuing the performance guarantee required under Section 16.12.070.

B. Determination of Sum. The warranty guarantee shall be for ten percent (10%) of the actual construction cost for the public improvements to which this provision applies. The warranty guarantee shall be in effect from the date of written acceptance by the City for ownership and operation for a period of two (2) years. The City Engineer may require longer periods for guarantees with respect to public improvements constructed under contract with the City.

C. Repairs and Replacements. Repairs or replacements required during the warranty period shall be guaranteed for two years from the date of completion of the repair or replacement. The City Engineer may require a separate two (2) year warranty guarantee for any repairs done pursuant to the warranty obligation. The form shall conform to subsection (A) above.

D. Notice of Warranty Work Required. The City Engineer shall provide written notice to the developer of the need to perform warranty work unless the City Engineer determines that an emergency exists, that delay would cause serious additional loss or damage, or if any delay in performing the work might cause injury to any member of the public. In cases of emergency or if the developer, after written notice, fails within fourteen days to perform the work required, the City may perform the warranty work and recover the costs of the warranty work, including any additional damages suffered by the City, from the warranty guarantee. The developer shall reimburse the City for the costs of any warranty work that exceeds the amount of the warranty guarantee, including interest at the legal rate if not paid within thirty (30) days of the date reimbursement is requested.

E. Termination of Warranty Guarantee. At the end of the warranty period, including any extensions, the warranty guarantee shall be released and any unused deposit money returned.

F. Procedures. The City Engineer shall establish standard forms and procedures for the warranty guarantee.