[Amended 1-24-2013 by Res. No. 13-01-002]
Performance security shall be required to assure completion of construction of sewer lines and appurtenances and other facilities that are constructed pursuant to an approved land development or subdivision plat as defined by the Pennsylvania Municipalities Planning Code.[1] The purpose of the security is to assure completion of construction of the sewer lines and appurtenances and other facilities and to guarantee the timely delivery by the developer to the Authority of as-built plans of the sewer system and the timely dedication of the system the by the developer to the Authority (if applicable) and the timely payment of all deposits and expenses related thereto.
A. 
Amount of performance security.
(1) 
The amount of the performance security shall be equal to 110% of the cost of the improvements to be completed within one year, as established by submitting to the Authority a bona fide bid from a contractor chosen by the party posting the performance security. In the absence of a bona fide bid, the cost shall be established by an estimate prepared by the Authority's engineer. An additional 10% shall be required for each one-year period beyond the first anniversary date of the posting of financial security. For purposes of determining financial security for the construction of sewer facilities, the estimated cost of the improvement shall not include any portion of the extension to be paid for by the Authority.
(2) 
If the developer disputes the Authority's estimated cost of the sewer improvements, then the Authority shall confirm and recalculate said estimate. If the developer still disputes the estimated cost, then the estimate shall be recalculated and certified by an independent professional engineer licensed as such in the state and chosen mutually by the Authority and the developer. The estimate certified by the independent engineer shall be presumed fair and reasonable and shall be the final estimate. In the event that an independent engineer is so chosen, fees for the services of said engineer shall be paid equally by the Authority and the developer.
B. 
Duration of performance security. The minimum time period of the performance security shall be one year, which security must be reissued before expiration if completion will be beyond one year. Commencement of construction shall not be a condition precedent to applicability and enforceability of the security.
C. 
Form of performance security. All performance security shall be of a type and a form that is permitted by law and acceptable to the Authority and shall include but not be limited to security through federally chartered or commonwealth-chartered lending institution's irrevocable letters of credit or restrictive or escrow accounts in these lending institutions.
D. 
Release of performance security.
(1) 
As work progresses on the sewer system, the developer may request the release of portions of the performance security. The request shall be in writing, addressed to the Authority, and the Authority shall have 45 days after receiving a request to ascertain that the portion of the work has been completed in accordance with the terms of the builder's agreement (Appendix SF). The Authority shall act to approve or disapprove the developer's request for the Authority to release portions of the performance security within 45 days after receiving such request. If the Authority fails to act within the forty-five-day period, it shall be deemed to have approved the requested release of funds.
(2) 
If, however, the developer fails to comply with all requirements necessary for the release of the performance security, and said requirements cannot be met to the satisfaction of the Authority, then the Authority may, at its discretion, either extend the period during which the Authority will keep the performance security until such time as the problems are resolved, or the Authority may take any necessary action to complete the construction, or to provide the "as-builts," or to execute the deed of dedication, as may be necessary, and deduct the necessary money from the performance security. Only after all such requirements are met to the Authority's satisfaction shall the Authority release any remaining performance security.
E. 
Minimum amount required for performance security. At no time prior to final completion of the sewer system and final acceptance by the Authority through the proper deed of dedication shall the performance security posted by the developer hereunder be reduced below an amount equal to 10% of the total amount of performance security originally posted by the developer.
[1]
Editor's Note: See 53 P.S. § 10101 et seq.
A. 
General. After final acceptance of the system by the Authority through a deed of dedication, maintenance security shall be required to assure the proper maintenance of sewer lines and appurtenances and timely payment of all expenses related thereto. All security shall be of a type and in a form acceptable to the Authority. The purpose of this security is to guarantee the repair or replacement of faulty workmanship or materials.
B. 
Amount. The amount of the maintenance security shall be 15% of the actual construction cost of the sewer improvements, including any Authority contribution. The developer shall submit documentation of actual cost that is acceptable to Authority.
C. 
Duration. The time period of the maintenance security shall be 18 months from the date of deed of dedication to the Authority. If after 18 months there are problems with the sewer improvements that have not been resolved to the satisfaction of the Authority, then the Authority may, at its discretion, either extend the period during which the Authority will keep the maintenance security until such time as the problems are resolved, or the Authority may make any necessary repairs and deduct the cost from the maintenance security.
D. 
Form of security. Maintenance security shall be in a form that is permitted by law and is acceptable to the Authority.
E. 
Release of security.
(1) 
After 18 months from the date of deed of dedication to the Authority, if there are no outstanding problems with the sewer system then the maintenance security will be released by the Authority.
(2) 
If, however, after 18 months from the deed of dedication there remain problems with the sewer improvements that have not been resolved to the satisfaction of the Authority, then the Authority may, at its discretion, either extend the period during which the Authority will keep the maintenance security until such time at the problems are resolved, or the Authority may make any necessary repairs and deduct the necessary money from the maintenance security. Only after all repairs are made to the sewer system to the satisfaction of the Authority shall the Authority release any remaining maintenance security.
[1]
Editor's Note: Former § 125-19, Applicability, was repealed 10-22-2015 by Res. No. 15-10-003.