A.Â
Before approving any subdivision or land development
plan for recording, the Board of Commissioners shall require that
the Township be assured (by means of a proper development agreement
and performance guarantee) that the improvements required by this
chapter and the improvements appearing on the plan will be installed
in strict accordance with the standards and specifications of this
chapter.
B.Â
Purpose of bond. The bond and other surety agreements
shall stand as security for compliance with all Township ordinances,
other laws, covenants, stipulations, conditions and rules applicable
to the subdivision for which it is filed.
C.Â
No construction of buildings or paving or sales of
any individual lot or condominium unit within a subdivision shall
take place in any subdivision unless:
(1)Â
There
is on file, with the Township, a current duly executed performance
bond (and security escrow agreement if necessary); or
(2)Â
Unless
all required public improvements, utilities, streets, drainage improvements
and easements, sewers and streetlights and all grading necessary to
support these public improvements have been completed and accepted
by the Board of Commissioners.
D.Â
If a developer chooses to install all required improvements
prior to any building, in place of using performance guarantees, the
Township shall as deemed necessary require the developer to have adequate
insurance, hold harmless agreements and an escrow account to cover
the costs of inspections.
E.Â
Required
improvements for performance guarantee. For the purposes of this chapter,
and for use in determining the amount of performance guarantee that
a developer is required to post with the Township, the term "required
improvements" shall mean:
[Added 7-6-2009 by Ord.
No. 07-09]
(1)Â
All
those improvements to be constructed by the developer to be dedicated
to the Township as public improvements; and
(2)Â
Such
other improvements that are determined by the Township to be common
amenities of a public interest, including but not limited to roads,
stormwater detention and/or retention basins and other related drainage
facilities, recreational facilities, open space improvements or buffer
or screen plantings.
A.Â
In all cases, the subdivider or land developer shall
be responsible for the installation of all improvements required by
this chapter.
B.Â
Inspection.
(1)Â
The Township Engineer or the Township's designee shall
make such inspections of the required improvements at such intervals
as may be reasonably necessary to assure compliance with this chapter.
(2)Â
The reasonable costs of such inspection shall be borne
by the subdivider or land developer, and held in an escrow account.
A.Â
Development agreement required.
(1)Â
All applicants proposing any subdivision or land development
which provides for the installation of improvements required by this
chapter or any improvements or amenities which appear on the plan
shall be required to enter into a legally binding development agreement
with the Township prior to recording of the approved final plan.
(2)Â
The development agreement shall guarantee the installation
of said improvements in strict accordance with all Township requirements.
(3)Â
The final plan shall not be recorded nor signed by
representatives of the Commission or the Board of Commissioners until
the development agreement is executed and the performance guarantee
is in place.
B.Â
Terms of development agreement. The development agreement
shall be in the manner and form approved by the Township Solicitor
and it shall consist of the following terms, where applicable:
(3)Â
(4)Â
Safeguards:
(a)Â
Developer's responsibilities for damage to other
property.
(b)Â
Developer shall secure or maintain public liability
insurance for the duration of improvements construction. A copy (of
other evidence of coverage) shall be submitted to the Township.
(c)Â
A save harmless clause to protect the Township
from liability.
(d)Â
Prevention of erosion, sedimentation and water
damage to the subject and adjacent properties.
(5)Â
Provisions for any future dedication or transfer of
streets, water and sewer lines and easements.
(6)Â
The developer shall provide the Township with a set
of reproducible record plans prepared by and certified to by a professional
engineer.
(7)Â
The developer shall be responsible for all reasonable
engineering and legal costs and expenses for review, inspection, consultations
and preparation of agreements.
(8)Â
Provisions for violation of the development agreement.
(9)Â
Any other lawful terms which the Board of Commissioners
may require to carry out the provisions of this chapter.
(10)Â
Signatures. The development agreement shall
be signed by all landowners and/or developers.
C.Â
Ownership of land and guarantee.
(1)Â
A certificate of ownership in the form of Appendix
C.2[2] shall be executed in the exact name in which title is
held. If the developer(s) of a subdivision is someone other than the
landowner(s) of the subdivision, the developer shall also execute
the affidavit given above, along with a performance bond and security
agreements.
[2]
Editor's Note: Appendix C is on file in the Township offices.
(2)Â
Change in ownership or developer. Any conveyance of
all or substantially all of the unimproved lots or public improvements
or roads of any subdivision or change in developers, whether voluntary
or by action of law or otherwise, shall require the prior approval
of the Board of Commissioners. In giving or denying said approval,
the Commissioners shall determine whether the proposed new landowner
and/or developer will be financially able to fully carry out the subdivision
with all required public improvements, and before giving final approval,
the Board shall require the posting of appropriate bonds and security
agreements.
[Amended 3-6-1995 by Ord. No. 1-95]
The performance guarantee for completion of
required improvements shall meet the following requirements:
A.Â
Security.
(1)Â
The guarantee shall be secured by the credit of any
of the following:
(a)Â
An irrevocable and unconditional letter of credit
of a federal- or state-chartered lending institution,
(b)Â
A restrictive or escrow account in a federal-
or state-chartered lending institution, or
(c)Â
Such other financial security approved by the
Board of Commissioners (which approval shall not be unreasonably withheld).
(2)Â
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 development schedule
for the completion of such improvements.[1]
(3)Â
Such financial security shall be posted with a bonding
company or federal- or state-chartered lending institution the party
posting the financial security, provided said company or lending institution
is authorized to conduct such business within the state.
(a)Â
The Board of Commissioners may require that
evidence be provided that such institution or company has sufficiently
adequate and secure assets to cover the security.
(b)Â
The Township shall be an authorized signatory
on any account in which the escrow funds are held and all escrow funds
from sales of lots shall be paid directly to such fund, and a monthly
statement shall be furnished to the Township.
B.Â
Amount.
(1)Â
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 developer in the official development
schedule, and within the process for increases to cover inflation
as permitted by the State Planning Code.[2],[3]
(2)Â
The cost of the improvements shall be established
by an estimate prepared by a Pennsylvania registered professional
engineer, within the arbitration process permitted by the State Planning
Code.
(3)Â
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
shall 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 bidding procedure.
(4)Â
The basis of the cost of improvements shall be the
estimated cost of improvement installed in accordance with the approved
plan. In the case of streetlights, the developer shall estimate the
cost of constructing the streetlighting, and the annual cost of lighting
based upon the electric utility's fee schedule. The security shall
include the cost of construction of streetlighting, and the cost of
electricity for streetlighting for a period of two years. The developer
shall be responsible for the cost of electricity for streetlighting
until the date of acceptance of the improvements by the Township.
Upon acceptance of the improvements by the Township, the developer
shall pay to the Township the cost of electricity for streetlighting
for the two-year period following the date of acceptance.
C.Â
Multiyear or multistage development. In the case where
development is projected over a period of years, the Board of Commissioners
may authorize submission of final plats by section or stages of development
subject to such requirements or guarantees 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.
A.Â
In general. As the work of installing the required
improvements proceeds, the party posting the financial security may
request the Board of Commissioners to release or authorize the release,
from time to time, such portions of the financial security necessary
for payment to the contractor(s) performing the work.
B.Â
Notice of completion. When the developer has completed
an improvement, the developer shall notify the Board of Commissioners
in writing by certified or registered mail of such completion and
request for release and shall send a copy thereof to the Township
Engineer.
C.Â
Engineer's report.
(1)Â
Within 30 days of the receipt of such request, the
Township Engineer shall submit a written report certifying which improvements
have been completed in accordance with the approved plan to the Board
of Commissioners and mail a copy of such report by certified or registered
mail to the developer at his last known address.
(2)Â
This report shall be based on the inspections made
according to the approved inspection schedule included in the development
agreement and shall recommend approval or rejection of the improvements,
either in whole or in part.
(3)Â
If the Engineer finds any or all of the improvements
to be not as required, he shall include a statement of the reasons
for recommending their rejection in the report.
D.Â
Decision by Board of Commissioners.
(1)Â
At its first regularly scheduled meeting after receiving
the Engineer's report (but not later than 45 days of the receipt of
the request) the Board of Commissioners shall review the Engineer's
report and shall authorize release of an amount as estimated by the
Township Engineer fairly representing the value of the improvements
completed.
(2)Â
The Board of Commissioners shall be deemed to have
approved the release of funds as requested if the Board of Commissioners
fails to act within 45 days of receipt of the developer's request.
(3)Â
Until final release (completion of all improvements),
the Board of Commissioners may require retention of 10% of the cost
of each completed improvement.
(4)Â
The Board of Commissioners shall notify the developer
in writing by certified or registered mail of the decision.
E.Â
Completion of unapproved improvements. The developer shall proceed to complete any improvements not approved by the Board of Commissioners and, upon completion, request approval in conformance with the procedures specified in this § 230-47.
F.Â
Final release.
(1)Â
When the developer has completed all of the necessary and appropriate improvements, the developer shall request final release in conformance with the procedures specified in this § 230-47. See time limitations and procedures in Section 510 of the Municipalities Planning Code.[1]
[1]
Editor's Note: See 53 P.S. § 10510.
G.Â
Appeal. 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 Commissioners
or the Township Engineer.
H.Â
Building permits and paving of street.
(1)Â
At any point in time, a maximum of 10 building permits
may have been issued for dwellings within all stages of a subdivision
or land development for building locations that do not have acceptable
vehicular access by a street, access drive or driveway as approved
in the official plan to and from an existing public street. Acceptable
vehicular access shall mean a cartways that is in a mud-free and permanently
passable condition and with at least a binder base course and curbing
(if required) in place.
I.Â
Certificates of occupancy and completion of improvements.
(1)Â
No temporary certificate of occupancy shall be issued
for any structure on a lot adjoining a dedicated road in a subdivision
until the structure is safe and substantially completed in conformity
to all applicable ordinances, laws and plans with service by electricity
end telephone service and any required water, fire hydrants and sewage
service and access to the structure to a public clearly permanently
passable street with at least a paving base course and any required
curbing installed.
(2)Â
No final certificate of occupancy shall be issued
until the structure is completed as aforesaid with service by all
utilities and access on a street completed to required standards.
A.Â
Enforcement of security.
(1)Â
In the event that any improvements which may be required
have not been installed as provided in this chapter or in accord with
the approved final plan, or in the event of the bankruptcy of the
owner or developer, the Board of Commissioners is hereby granted the
power to elect to enforce any corporate bond (or other security) by
appropriate legal and equitable remedies.
(2)Â
This may include taking all actions necessary to obtain
moneys under said bond, including but not limited to seizure of undeveloped
lots, confession of judgment, suit on the bond, seizure of escrow
funds, revocation of building permits and prosecution under this chapter.
(3)Â
Rate of construction. Failure of a developer to construct
streets and other public improvements reasonably at the same time
or prior to the construction of the buildings served by those streets
or public improvements, and at the same rate in time at which buildings
are completed, shall be a violation of this chapter and a cause for
default.
B.Â
Completion by Township. If the proceeds of such bond
or other 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 Commissioners may, at its option, install part
of such improvements in all or part of the subdivision or land development
and may institute appropriate legal or equitable action to recover
the moneys necessary to complete the remainder of the improvements.
C.Â
Proceeds for installation of improvements. All of
the proceeds, whether resulting from the security or from any legal
or equitable action brought against the developer, or both, shall
be used solely for the installation of the improvements covered by
such security, and not for any other Township purpose.
A.Â
Maintenance agreement required.
(1)Â
All applicants proposing any subdivision or land development
which provides for the dedication of improvements required by this
chapter or any improvements or amenities which appear on the plan
shall be required to enter into a legally binding maintenance agreement
with the Township prior to acceptance of dedication by the Township.
(2)Â
The dedication of any improvement shall not be accepted
by the Township prior to the execution of a maintenance agreement
and the delivery of the maintenance guarantee.
B.Â
Terms of maintenance agreement.
(1)Â
The maintenance agreement shall be in the manner and
form approved by the Township Solicitor.
(2)Â
The maintenance agreement shall require the applicant
to make any repair or reconstruction of any improvement stipulated
in the maintenance agreement which is specified by the Board of Commissioners
as necessary by reason of faulty construction, workmanship, or materials
prior to acceptance of such improvement by the Township.
(3)Â
The maintenance agreement shall require the applicant
to maintain at his own cost all improvements stipulated in the maintenance
agreement. This period shall not exceed 18 months from the date of
acceptance or dedication by the Township, except for any special purpose
escrow or maintenance agreement required by the Township.
(4)Â
The maintenance agreement shall require the posting
of financial security to secure structural integrity of said improvements
as well as the functioning of said improvements in accordance with
the design and specifications as depicted on the final plat for a
term not to exceed 18 months from the date of acceptance of dedication.
(5)Â
Snowplowing. It shall be the responsibility of the
developer to plow snow and maintain all streets until such time as
the Township may accept such streets.
C.Â
Public utilities and authorities. 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 Township, 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 within the financial security
as otherwise required by this section.
A.Â
Security. The maintenance guarantee shall be secured
by the credit of any of the following:
(1)Â
An irrevocable and unconditional letter of credit
of a federal- or state-chartered lending institution,
(2)Â
A restrictive or escrow account in a federal- or state-chartered
lending institution, or
(3)Â
Such other financial security approved by the Board
of Commissioners (which approval shall not be unreasonably withheld).
B.Â
Terms. Such maintenance guarantee shall be in the
form approved by the Township Solicitor and Commissioners, payable
to the Township, to guarantee the maintenance and repair of the streets
and other improvements in the subdivision for 18 months from the date
of acceptance thereof by the Township.
C.Â
Amount. The amount of the maintenance guarantee shall
be determined by the Township, but shall not exceed 15% of the actual
cost of installation of such improvements.
D.Â
Release. After the expiration of 18 months from the
date of acceptance of said improvements, the Township shall release
said maintenance guarantee to the developer (or party posting said
maintenance guarantee) if all improvements are in satisfactory condition.