[Amended 3-6-1995 by Ord. No. 1-95]
The performance guarantee for completion of
required improvements shall meet the following requirements:
A. Security.
(1) The guarantee shall be secured by the credit of any
of the following:
(a)
An irrevocable and unconditional letter of credit
of a federal- or state-chartered lending institution,
(b)
A restrictive or escrow account in a federal-
or state-chartered lending institution, or
(c)
Such other financial security approved by the
Board of Commissioners (which approval shall not be unreasonably withheld).
(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 development schedule
for the completion of such improvements.
(3) 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)
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)
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. Amount.
(1) 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) 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) 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) 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. 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.