As used in this chapter, unless otherwise expressly stated or
clearly indicated by the context, the following terms shall have the
meanings indicated:
GUARANTEE
One prepared by the developer in the form required by the
City of Harrisburg, which will accept the improvements. The following
are acceptable forms of guarantees. All other forms of guarantees
must be individually approved by the City Solicitor of the City of
Harrisburg.
A.
SURETY PERFORMANCE BONDA security bond from a surety bonding company authorized to do business in the Commonwealth of Pennsylvania. The bond shall be payable to the City of Harrisburg.
B.
ESCROW ACCOUNTA deposit of cash either with the City or in escrow with a financial institution. The use of a financial institution for establishing an escrow account shall be subject to approval by the City Solicitor. In the case of an escrow account with a financial institution, the developer shall file with the City an agreement between the financial institution and the developer guaranteeing the following:
(1)
The funds of said escrow account shall be held in trust until
released by the City and may not be used or pledged by the developer
as security in any other matter during that period.
(2)
In the case of a failure on the part of the developer to complete
said improvements, then the financial institution shall immediately
make the funds in said account available to the City of Harrisburg
for use in the completion of those improvements.
C.
LETTER OF CREDITA letter of credit provided by the developer from a financial institution or other reputable institution subject to the approval of the City. This letter shall be deposited with the City and shall certify the following:
(2)
In case of failure on the part of the developer to complete
the specified improvements within the required time period, the creditor
shall pay to the City of Harrisburg immediately, and without further
action, such funds as are necessary to finance the completion of those
improvements, up to the limit of credit stated in the letter.
(3)
The letter of credit is irrevocable and may not be withdrawn,
or reduced in amount, until released by the City of Harrisburg.
After final plan approval and upon completion of all required
improvements, the developer shall submit as-constructed drawings showing
the location, dimension, and elevation of all improvements. Such drawings
shall indicate that the required grading, drainage structures, and/or
drainage systems and erosion and sediment control practices have been
installed in substantial conformance with the previously approved
final plan. The as-constructed drawings shall specify all deviations
from the previously approved plans. Five copies of the drawings shall
be submitted to the City of Harrisburg.
As the work of installing the required improvements proceeds,
the party posting the financial security may request that the City
of Harrisburg release or authorize the release, from time to time,
of such portions of the financial security necessary for payment to
the contractor or contractors performing the work. Any such request
shall be in writing, addressed to the City, and shall be accompanied
by as-constructed drawings. The City shall have 45 days from receipt
of such request within which to allow the City Engineer to certify
in writing that such portion of the work upon the improvements has
been completed in accordance with the approved final plan. Upon such
certification, the City shall authorize release by the bonding company
or lending institution of an amount fairly representing the value
of the improvements completed. If the City fails to act within said
forty-five-day period, the City shall be deemed to have approved the
release of funds as required. Prior to final release at the time of
completion and certification by the City Engineer, the City shall
require retention of 10% of the estimated cost of the aforesaid improvements.
The developer shall furnish to the City, at the time of the
City's acceptance of the deed of dedication, a twenty-four-month
maintenance bond, with corporate surety acceptable to the City Solicitor,
to secure the structural integrity of said improvements in accordance
with the design and specifications. The amount of the maintenance
bond or other financial security shall be 15% of the actual cost of
construction.
Prior to the expiration of the twenty-four-month period and
at such other times as are necessary, the developer's engineer,
in conjunction with personnel from the Bureau of Engineering, will
conduct inspections. These inspections will be for the purpose of
determining the existence of any maintenance deficiencies and required
remedial action prior to the release of surety. No sureties will be
released without approval from the Bureau of Engineering.