The administration of the financial security
shall comply with the provisions of this article, the Pennsylvania
Municipalities Planning Code, Act 247, as amended, and other applicable laws of the commonwealth.
A. Submission of financial security. Final plan applications
that include public improvements that have not been installed shall
include a financial security.
(1) Type of financial security. Although the Board of
Supervisors may accept an alternative type of financial security,
commonly used forms are irrevocable letters of credit and escrow accounts.
Such financial security shall be posted by a chartered lending institution
or bonding company authorized to do business in the Commonwealth of
Pennsylvania and is subject to review by the Township Solicitor for
adequacy.
(2) 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 schedule for completion
or a rescheduled date of completion. Subsequent to said adjustment,
the municipality 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 of the required
improvements, submitted by an applicant or developer and prepared
by a professional engineer licensed as such in this commonwealth and
certified by such engineer to be a fair and reasonable estimate of
such cost. The municipality, upon the recommendation of the municipal
engineer, may refuse to accept such estimate for good cause shown.
If the applicant or developer and the municipality are unable to agree
upon an estimate, then the estimate shall be recalculated and recertified
by another professional engineer licensed as such in this commonwealth
and chosen mutually by the municipality and the applicant or developer.
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 of said engineer
shall be paid equally by the municipality and the applicant or developer.
(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 the developer has completed all of the necessary
and appropriate improvements, the developer shall notify the Board
of Supervisors in writing, by certified or registered mail, of the
completion of the aforesaid improvements and shall send a copy thereof
to the Township Engineer. The Board of Supervisors shall, within 10
days after receipt of such notice, direct and authorize Township Engineer
to inspect all of the aforesaid improvements. The Township Engineer
shall, thereupon, 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 made and mailed within 30
days after receipt by the Township Engineers of the aforesaid authorization
from the Board of Supervisors; said 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, shall
not be approved or shall be rejected by the Township Engineers, said
report shall contain a statement of reasons for such nonapproval or
rejection.
(2) The Board of Supervisors shall notify the developer,
within 15 days of receipt of the Engineer's report, in writing by
certified or registered mail of the action of the Board of Supervisors
with relation thereto.
(3) If the Board of Supervisors or the Township Engineer
fails to comply with the time limitation provisions contained herein,
all improvements will be deemed to have been approved and the developer
shall be released from all liability, pursuant to its performance
guaranty bond or other security agreement.
(4) 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.
(5) 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.
(6) If any portion of said improvements are not approved
or are rejected by the Board of Supervisors, the applicant shall proceed
to complete the same and, upon completion, the same procedure of notification
outlined herein shall be followed.
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.
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 final plan shall be transferred
until the improvements have been formally accepted. All requests for
dedication shall follow the current procedures of the Township of
West Lampeter.
The Board of Supervisors may, at its discretion,
require the applicant 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 not exceed 15% of
the actual cost of installation of said improvements and be of the
same type of financial security as required in this article.
Upon completion of all required improvements
and prior to final inspections of improvements, the applicant shall
submit a plan labeled "as-built plan," showing the location, dimension
and elevation of all improvements. In addition, the plan shall indicate
that the resultant grading, drainage structures and/or drainage systems
and erosion and sediment control practices, including vegetative measures,
are in substantial conformance with the previously approved drawings
and specifications. The plan shall note all deviation from the previously
approved drawings. Two copies of the plan (one paper transparency
and one plastic transparency) shall be submitted to the Township,
which shall distribute the paper transparency to the Township Engineer
and retain the plastic transparency for the Township files.