Any owner of real property or any other person interested may apply to the council to authorize an improvement referred to in paragraph d of subdivision one of section two hundred ten hereof, not included in the capital budget. The council may authorize such improvement to be made by the city or by such owner or other person interested upon compliance with the following conditions:
1. Such owner or group or other persons interested shall enter into an agreement with the city, whereby they will either authorize the city, or themselves agree, to perform such work in accordance with such plans and specifications approved by the agencies having jurisdiction thereover and under their supervision.
2. All of such work shall be done for the account of or at the sole cost and expense of the person or persons applying for permission to do the same, who shall furnish to the city such security and in such amount as may be required to secure the payment of such cost and expense or the proper performance of the said work in the time and in the manner agreed upon, and shall further secure the city, in the latter case, against latent defects in such work for a period of two years.
3. Such improvement shall be approved by the city planning commission and reviewed pursuant to sections one hundred ninety-seven-c and one hundred ninety-seven-d.
4. Any agreement providing for the performance of such work and the furnishing of such security, shall be first approved by the council before the same shall become effective.