Improvement guarantee. The subdivider shall include in said contract,
with approval of the City Attorney, an instrument of public improvement
guarantee by irrevocable letter of credit, certified check, cash escrow
deposit, or performance bond whereby a bonding company (with assets
exceeding $10,000,000 and authorized to do business in the State of
Wisconsin) guarantees maintenance, repair, and replacement by the
developer of said public improvements which deteriorate or fail to
meet performance or operating standards during the bond term, or any
penalties which may be incurred as a result thereof, equal to 15%
of the City Engineer's estimate of the cost of the public improvements.
If within one year after the date of final acceptance of any public
improvement by the Common Council (or such longer period of time as
may be prescribed by laws or regulations or by the terms of any special
guarantee required by the terms of said contract as may be necessary
due to the phasing of the construction of public improvements) any
work on any public improvement is found to be defective, the subdivider
shall remove it and replace it with nondefective work in accordance
with written instructions given by the City Engineer. If the subdivider
does not promptly comply with the terms of such instructions, or in
an emergency where delay would cause serious risk of loss or damage,
the City may cause the removal and replacement of said defective work
and charge all direct, indirect and consequential costs of such removal
and replacement to the performance bond or improvement guarantee instrument.