In lieu of the completion of any improvements required as a condition for the final approval of a plat, the Township Council shall grant final approval prior to completion, provided that:
A. The developer enters into an agreement with the Township and a security agency guaranteeing that the improvements will be installed in accordance with the plans and specifications approved by the Township prior to plat approval. This agreement should set forth the responsibilities of each party, the construction schedule, conditions for partial release of security, inspection of work, definition of default and the developer's right to appeal a default decision. This agreement shall also guarantee that no lot will be sold or building constructed in any flood-prone area prior to completion of all protective works or measures planned for such lot and necessary access facilities.
B. Simultaneous with the execution of the agreement specified above, the developer shall provide the Township with a financial security in an amount sufficient to guarantee the performance of this agreement and to cover the costs of any improvements or common amenities, including but not limited to stormwater detention and/or retention basins and other related drainage facilities, recreational facilities, open space improvements or buffer and screen plantings which may be required.
(1) Without limitation as to other reasonable types of financial security which the Township may approve, corporate bonds, surety performance bonds, subdivision bonds, irrevocable letters of credit and restrictive or escrow accounts shall be deemed acceptable financial security for the purposes of this section. Such financial security shall be posted with a bonding company or federal or commonwealth chartered lending institution chose by the party posting the financial security, provided that said bonding company or lending institution is authorized to conduct such business within the commonwealth.
(2) Such bond or other security shall provide for, and secure to the public, the completion of any improvements which may be required within one year of the date fixed in the plat for completion of such improvements.
(3) The amount of financial security shall be equal to 110% 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 Township of a bona fide bid or bids from the contractor or contractors chosen by the party posting the financial security to complete the improvements, or, in the absence of such bona fide bids, the cost shall be established by estimate prepared by the Township Engineer. 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.
(a) To help the Township to determine a bona fide bid, the Township Engineer may be asked to review all cost figures for accuracy.
(b) The engineer may consider the potential of increased costs to the Township due to the Pennsylvania Prevailing Wage Act (Act 422 of 1961).
C. In the case where development is projected over a period of years, the Township may authorize submission of final plats by section 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 the Township Water and Sewer Authority, financial security to assure proper completion and maintenance thereof shall be posted in accordance with its regulations and shall not be included within the financial security as otherwise required by this section.