The administration of the financial security
shall comply with the provisions of this article, the Pennsylvania
Municipalities Planning Code, Act 247, as reenacted and amended by
Act 170 of 1988, and as subsequently amended, and other applicable
laws of the commonwealth.
A. Submission of financial security. Final plan applications
which include required improvements that have not been installed shall
include financial security and improvement guarantee agreement (see
sample agreement available at the Township Municipal Office).
(1) Type of financial security. Financial security must
comply with the following, and is subject to review by the Township
Solicitor and Board of Supervisors for adequacy:
(a)
Irrevocable letter of credit. A letter provided
by the developer from a federal or commonwealth-chartered financial
institution, which is authorized to conduct such business within the
commonwealth.
(b)
Escrow account. A deposit of cash, either with
the Township, or in escrow, with a federal or commonwealth-chartered
financial institution, which is authorized to conduct such business
within the commonwealth.
(2) General contents. The terms of any financial security
documents shall be acceptable to the Township Solicitor. In addition
to other information required by the Township, financial securities
shall include the following:
(a)
The amount of secured funds.
(b)
In case of failure on the part of the developer
to complete the specified improvements within a time period specified
in a written agreement, the funds shall be paid to the Township immediately
and without further action, upon presentation of a signed draft in
an amount necessary to finance the completion of those improvements,
up to the limit of the security.
(c)
The security is irrevocable and may not be withdrawn,
or reduced in amount by other than the Township, until released or
partially released by the Township.
(3) Amount of financial security.
(a)
The amount of financial security shall be equal
to 110% of the cost of completion estimated as of 90 days following
the date scheduled for completion by the developer. Annually, the
Township may adjust the amount of the financial security by comparing
the actual cost of the improvements which have been completed and
estimated cost for the completion of the remaining improvements, as
of the expiration of the 90th day after either the original date scheduled
for completion, or a rescheduled date of completion. Subsequent to
said adjustment, the Township may require the developer to post additional
security in order to assure that the financial security equals said
110%. Any additional security shall be posted by the developer in
accordance with this chapter.
(b)
The amount of financial security required shall
be based upon an estimate of the cost of completion (including quantities
and unit cost) of the required improvements, submitted by a developer,
and prepared and certified by an engineer to be a fair and reasonable
estimate of such cost.
(c)
If the party posting the financial security
requires more than one year from the date of posting of the financial
security to complete the required improvements, the amount of financial
security may be increased by an additional 10% for each one-year period
beyond the first anniversary date from posting of financial security,
or to an amount not exceeding 110% of the cost of completing the required
improvements, as reestablished on or about the expiration of the preceding
one-year period by using the above procedure.
B. Release of financial security.
(1) When all or part of the financially secured improvements
are completed, the developer may notify the Board of Supervisors and
request a release of the financial security. Requests for a reduction
of a portion of the financial security shall be limited to an amount
that is at least a minimum 20% of the original total financial security,
unless a smaller percentage equals at least $100,000.
(2) All requests for release of financial security shall be in writing, by certified or registered mail, to the Board of Supervisors, at the Township Municipal Office, and a copy thereof shall be sent to the Township Engineer. This notice shall include the "as-built plan," in accordance with §
194-23, and specifically identify in writing the improvements for which a reduction in the financial security is requested.
(3) After receipt of notice for release of financial security,
the Board of Supervisors shall, within 10 days, authorize the Township
Engineer to inspect all of the aforesaid improvements. The Township
Engineer shall, within 30 days of authorization, file a written report
with the Board of Supervisors, and shall promptly mail a copy of the
same to the developer by certified or registered mail. The report
shall be detailed and shall indicate approval or rejection of said
improvements, either in whole or in part, and if said improvements,
or any portion thereof, are not approved by the Township Engineer,
said report shall contain a statement of reasons for such rejection.
(4) The Board of Supervisors shall notify the developer,
within 15 days of receipt of the Township Engineer's report in writing,
by certified or registered mail, of the action of the Board of Supervisors
with relation thereto.
(5) If any portion of the said improvements shall not
be approved or shall be rejected by the Board of Supervisors, the
developer shall proceed to complete the same and, upon completion,
the same procedure of notification, as outlined herein, shall be followed.
(6) A portion of the financial security may be retained as a maintenance guarantee in accordance with §
194-21.
C. Other remedies. If proceeds of the financial security
are insufficient to pay the cost of installing or making repairs or
corrections to all the improvements covered by said security, the
Board of Supervisors may, at its option, install all or part of such
improvements and may institute appropriate legal or equitable action
to recover the funds necessary to complete the remainder of the improvements.
All of the proceeds, whether resulting from the security or from any
legal or equitable action brought against the applicant, or both,
shall be used solely for the installation of the improvements covered
by such security, and not for any other municipal purpose.
The procedure is available for the installation
of required improvements in lieu of placing financial security with
the Township.
A. Authorization for construction.
(1) The applicant may receive approval to construct only
the improvements required as part of this chapter, upon receipt of
conditional final plan approval, with the only outstanding condition
being the guarantee of public improvements, and the recording of the
plan. However, the approvals/permits from other agencies with jurisdiction
shall be obtained.
(2) The construction of improvements is limited to streets,
street signs, street trees, sidewalks, curbs, survey monuments and
markers, landscaping required by this chapter, storm drainage for
dedication or which affects adjacent properties or streets, sanitary
sewer facilities for multiple use, water supply facilities for multiple
use, fire hydrants, and other such improvements.
(3) The application (see Appendix No. 10) shall be submitted to the Township Manager, or designate,
at the Township Municipal Office, on any business day. The Township
Manager, or designate, shall review the application and notify the
applicant in writing if all conditions are met and the construction
of public improvements is authorized.
B. Completion of public improvement.
(1) When all or part of the required improvements are complete, the developer shall notify the Board of Supervisors. Except for mandatory inspection during construction, notification of completion of a portion of the required improvements is only necessary should the developer elect to financially secure the remaining improvements in accordance with §
194-18.
(2) Notification of completion of improvements shall be in writing, by certified or registered mail, and a copy thereof shall be sent to the Township Engineer. This notice shall include the "as-built plan," in accordance with §
194-23.
(3) After receipt of notice that improvements are completed,
the Board of Supervisors, within 10 days, shall authorize the Township
Engineer to inspect all of the previously mentioned improvements.
The Township Engineer, within 30 days of authorization, shall file
a report, in writing, with the Board of Supervisors, and shall promptly
mail a copy of the same to the developer, by certified or registered
mail. The report shall be detailed and shall indicate approval or
rejection of said improvements, either in whole or in part, and if
said improvements or any portion thereof are not approved by the Township
Engineer, said report shall contain a statement of reasons for such
rejection.
(4) The Board of Supervisors shall notify the developer,
within 15 days of receipt of the Township Engineer's report in writing,
by certified or registered mail, of the action of the Board of Supervisors
with relation thereto.
(5) If any portion of the said improvements shall not
be approved by the Board of Supervisors, the developer shall proceed
to complete the same and, upon completion, the same procedure of notification,
as outlined herein, shall be followed.
(6) Nothing herein, however, shall be construed in limitation
of the developer's right to contest or question, by legal proceedings
or otherwise, any determination of the Board of Supervisors or the
Township Engineer.
All improvements shall be deemed to be private
improvements and only for the benefit of the specific project, until
such time as the same have been offered for dedication, and formally
accepted by the Board of Supervisors. No responsibility of any kind
with respect to improvements shown on the plan shall be transferred
until the improvements have been formally accepted. All requests for
dedication shall be made in accordance with Township rules and regulations,
shall include all information required by the Township for processing
such a request, and shall be accompanied by a required filing fee.
The Board of Supervisors may, at its discretion, require the developer to submit a maintenance guarantee or other approved guarantee as specified herein, guaranteeing the structural integrity, as well as function, of any improvement shown on the final plan, for a term not to exceed 18 months from the date of acceptance of dedication by the Board of Supervisors. Said guarantee shall be 15% of the actual cost of installation of said improvements and be of the same type of financial security as required in this article. Maintenance guarantee shall not start until as-built plans are approved by the Township (see §
194-23).
Upon completion of all required improvements, and prior to final observation of improvements, the developer shall submit an "as-built plan," according to the specification of §
194-16, showing the actual location, dimension and elevation of all existing improvements. The as-built plan submission shall also include, when necessary, a revised deed for all lands that are fully improved and offered for dedication. The as-built plan shall include a plan note that specifically identifies all deviations from the previously approved drawings. The applicant's engineer shall certify that the construction of all facilities were completed in accordance with the as-built plan. Six paper copies of the plan and five copies of the application (see Appendix No. 6) shall be submitted to the Township Manager, or designate,
at the Township office. The Township Manager, or designate, shall
distribute the plan to the Township Engineer (two copies), Township
Authority, engineer for the Authority (two copies), and retain a copy
for the Township files.