No subdivision or land development shall be approved for recording until
the municipality has been assured by means of a proper contract containing,
among other items, performance and maintenance guaranties, that the required
improvements will subsequently be installed by the owner and/or applicant,
hereinafter referred to as the "developer."
In all cases where the necessary grading, paving and other subdivision
improvements (including both public and private improvements) required herein
shall not have been installed in strict accordance with the standards and
specifications of the municipality prior to the municipality approving any
subdivision or land development plan for recording, the developer shall enter
into a written agreement with the municipality in the manner and form approved
by the Borough Solicitor wherein the developer shall agree, to the extent
applicable:
A.
To construct or cause to be constructed at his own expense
all streets, roadways, cartways, driveways, monuments, street signs and street
names, off-street parking/parking lots, curbs, sidewalks, street tree and
buffer plantings, lighting, fire hydrants, water mains, sanitary sewers (including
capped sewers), storm sewers, drainage and erosion control improvements, including
but not limited to stormwater detention and/or retention basins and other
related facilities, recreation facilities, open space improvements and other
improvements shown on the approved subdivision or land development plan, all
in strict accordance with the standards and specifications of the municipality
and within the time specified in said agreement.
B.
To deposit with the municipality financial security in
an amount sufficient to cover the cost of all required subdivision improvements
(including both public and private improvements); provided, however, that
said financial security shall not include improvements which are part of financial
security provided to PennDOT. The financial security shall be posted contemporaneously
with the execution of the agreement, in the form of either a bond from bonding
company authorized to do business within the commonwealth or such other type
of financial security that the governing body may approve in an amount to
be approved by the Planning Commission engineer. The bonding company may be
chosen by the developer, provided that the bonding company shall stipulate
that it submits to Pennsylvania jurisdiction and Lackawanna County venue in
the event of legal action. The financial security shall provide for, and secure
to the public, the completion of all site improvements for which the security
is being posted within one year of the date fixed in the subdivision plan
or subdivision agreement for completion of the cost of the required improvements
for which financial security is to be posted. The cost of the improvements
shall be established by submission to the governing body of bona fide bid
or bids from the contractor or contractors chosen by the developer to complete
the improvements or, in the absence of such bona fide bids, the cost shall
be established by an estimate prepared by the Planning Commission engineer.
If the developer requires more than one year from the date of the posting
of the financial security to complete the required improvements, the amount
of financial security shall be increased by an additional 6% 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 bidding procedure. The municipality shall
be identified on such security as a party to be notified in the event that
said security is canceled, revoked or redeemed by the holder thereof.
C.
In the case where a development is projected over a period
of years, the governing body may authorize submission of final plans by sections
or stages of development, subject to such requirements or guaranties as to
improvements in future sections or stages of development as it finds essential
for the protection of any finally approved section of the development.
D.
If water mains or sanitary sewer lines, or both, along
with apparatus or facilities related thereto, are to be installed under the
jurisdiction and pursuant to the rules and regulations of a public utility
or municipal authority separate and distinct from the municipality, financial
security to assure proper completion and maintenance thereof shall be posted
in accordance with the regulations of the controlling public utility or municipal
authority and shall not be included with the financial security as otherwise
required by this section.
E.
As the work of installing the required improvements proceeds,
the developer may request the governing body to release or authorize a reduction,
from time to time, of the financial security consistent with the completion
and acceptance of portions of the required site improvements. Any such request
shall be in writing addressed to the governing body, and the governing body
shall have 30 days from receipt of such request within which to allow the
Planning Commission engineer to certify, in writing, that such portion of
the work upon the improvements has been completed in accordance with the approved
plans. Upon such certification, the governing body shall authorize the bonding
company or lending institution to reduce the financial security in an amount
as estimated by the Planning Commission engineer fairly representing the value
of the improvements completed. The governing body may, prior to final approval
of the reduction at the time of completion and certification by the Planning
Commission engineer, require retention of 10% of the estimated cost of the
aforesaid improvements. The Planning Commission engineer, in certifying the
completion of work for a partial reduction, shall not be bound to the amount
requested by the developer, but shall certify to the governing body his independent
evaluation of the proper amount of partial reduction.
F.
To make adequate provisions with the Planning Commission
engineer for the inspection of the construction of the aforesaid improvements
to assure strict compliance with municipal standards and specifications.
G.
To pay all costs, charges or rates of the utility furnishing
fire hydrant and electric service for the fire hydrants and street lighting
facilities installed by the developer until such time as the streets shown
on the subdivision and/or land development plans shall have been accepted
or condemned by the municipality for public use, and to indemnify and save
harmless the municipality from and against all suits, actions, claims and
demands for electric service and fire hydrant service as aforesaid, or any
part thereof, to the time that said streets shall be accepted or condemned
as public streets in the manner hereinabove set forth.
H.
To reimburse the municipality promptly for:
I.
The developer shall, when the improvements are completed
to the satisfaction of the governing body, offer for dedication, and the municipality
may accept said streets and/or other parcels, together with any improvements
thereunder or thereupon by a deed in a form approved by the Borough Solicitor.
Such deed shall include a reference to a plan of the streets and/or other
parcels dedicated; title thereto shall be clear title and be such as will
be insurable by a reputable title insurance company of Pennsylvania at regular
rates; all in connection therewith to be borne by the developer.
J.
Where the governing body accepts dedication of all or some of the required improvements following completion (whether such dedication is of the fee-simple form or of an easement), the developer shall post financial security to secure the structural integrity of the improvements and the functioning of the improvements in accordance with the design and specifications as depicted on the final plan. The security shall be in the form as authorized in Subsection B above and shall be for a term of 18 months from the date of the acceptance of dedications and shall be in an amount equal to 15% of the actual cost of installation of the improvements so dedicated. The percentage used to determine the amount of the maintenance guaranty may be increased if all lots in the subdivision or land development do not have dwellings or other principal buildings erected thereon prior to acceptance of dedication.
