A.
Prior to Final Plan approval, the Supervisors shall require the applicant to install all improvements, both public and private, or to furnish the Township financial security to cover the costs and guarantee the installation of all improvements. Improvements shall be developed in conformance with the Final Plan and all applicable Township ordinances and regulations, and in accordance with applicable state and federal laws. The applicant shall not be released from all or portions of the guarantee until all improvements or portions thereof are inspected and found to be properly installed and properly functioning in compliance with Township, state and federal laws and ordinances as determined by the Township Engineer.
B.
Financial security required to cover the cost of all improvements shall be in the form of a restrictive or escrow account with a federal or commonwealth chartered lending institution or such other type of financial security authorized by the Pennsylvania Municipalities Planning Code, Act 247 as amended and revised.
C.
The financial security shall provide for, and secure to the public, the completion of all improvements for which the security is being posted on or before the date of the formal action of Township approval or accompanying agreements for completion of the improvements. Any financial security agreement shall require that, where the Township Board of Supervisors has not determined the completion of all improvements, as of the required completion date, the Township shall immediately receive in cash the full amounts guaranteed by the escrow account or other financial security, unless the Township Board of Supervisors, in its discretion, agrees in writing to an extension or other amendment to the financial security agreement.
D.
The amount of financial security to be posted for the completion of the required improvements shall be equal to 110% of the cost of completion estimated as of 90 days following the date scheduled for completion by the applicant.
(1)
The amount of financial security required shall be based on an estimate of the cost of completion of the required improvements. This estimate shall be prepared by a professional engineer licensed as such in the Commonwealth of Pennsylvania and determined to be a fair and reasonable estimate of such costs. The Township, upon recommendation of the Township Engineer, may refuse to accept the estimate for good cause.
(2)
If the applicant or the applicant's agent, and the Township, are unable to agree upon an estimate, then the estimate shall be recalculated and recertified by another professional engineer licensed in the Commonwealth of Pennsylvania and chosen mutually by the Township and the applicant or applicant's agent. The estimate certified by the third engineer shall be presumed fair and reasonable and shall be the final estimate. In the event that a third engineer is so chosen, fees for the services shall be paid equally by the Township and the applicant or applicant's agent.
E.
The Township may adjust the amount of financial security on an annual basis by comparing the actual cost of the improvements which have been completed to date, and the estimated cost of completing the remaining improvements as of the expiration date or a rescheduled completion date.
(1)
Any adjustment of the amount of financial security shall consider, among other things, the cost of completing unfinished improvements, and the cost of correcting foreseen and unforeseen problems that have arisen during development. Subsequent to said adjustment, the Township may require the developer to post additional security in order to ensure that the financial security equals 110% of the remaining improvements. Any additional security shall be posted by the developer in accordance with this subsection.
(2)
If the applicant or applicant's agent requires more than one year from the date of the posting of the financial security to complete the required improvements, the amount of the financial security may be increased by an additional 10% for each one-year period, or portion thereof, beyond the first anniversary date from the posting, or to an amount not exceeding 110% of the cost of completing the remaining improvements.
F.
When requested by the applicant or applicant's agent, in order to facilitate financing, the Township Board of Supervisors shall furnish a signed copy of a resolution indicating approval of the Final Plan contingent upon the applicant or applicant's agent obtaining a satisfactory financial security. The Final Plan shall not be signed or recorded until the financial improvements agreement is executed. The resolution or letter of contingent approval shall expire and be deemed to be revoked if the financial security agreement is not executed within 90 days unless a written extension is granted by the Board of Supervisors; such extension shall not be unreasonably withheld and shall be placed in writing at the request of the applicant.
G.
In a case where development is projected over a period of years, the Township may authorize submission of Final Plans by section or stages of development, subject to such requirements or guarantees as to improvements in future sections or stages of development it finds essential for the protection of any finally approved section of the development.
H.
If any utility systems 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 Township, financial security to ensure 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 within the financial security as otherwise required by the Township.
I.
As the work of installing the required improvements proceeds, the applicant or applicant's agent may request the Board of Supervisors to release or authorize the release from time to time, such portions of the financial security necessary for payment to the contractor or contractors performing the work.
(1)
Any such request shall be in writing addressed to the Board of Supervisors. The Board shall have 45 days from receipt of such request within which to allow the Township Engineer to determine, in writing, that such portion of the work on the improvements has been completed in accordance with the approved plans and agreements.
(2)
Upon such determination, the Board of Supervisors shall authorize release by the bonding company or lending institution of an amount as estimated by the Township Engineer as fairly representing the value of the improvements completed.
(3)
The Township Engineer, in determining the completion of the work for a partial release, shall not be bound to the amount requested by the applicant, but shall convey to the Board his independent evaluation of the proper amount of releases. The Board of Supervisors may, prior to final release at the time of completion and certification by the Township Engineer, require retention of 10% of the estimated cost of the aforesaid improvements.