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 financial
security in accordance with the following:
(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 reputable 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.
[Amended 6-14-1990 by Ord. No. 90-07]
(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 Board of Supervisors
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 of either the original date schedule for completion
or a rescheduled date of completion. Subsequent to said adjustment,
the Board of Supervisors 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 Board
of Supervisors, upon the recommendation of the Township Engineer,
may refuse to accept such estimate for good cause shown. If the applicant
or developer and the Board of Supervisors 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 Board of Supervisors 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 Board of Supervisors and
the applicant or developer.
(c)
If the party posting the financial security required 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) As the work of installing the required improvements proceeds, the
applicant may request the Board of Supervisors to release or authorize
the release of portions of the financial security. Any such requests
shall be in writing addressed to the Board of Supervisors who shall
have 45 days from receipt of such request for the Township Engineer
to certify, in writing, to the Board of Supervisors that such portion
of the work has been completed in accordance with the approved plan.
Upon such certification, the Board of Supervisors shall authorize
release of the amount estimated by the Township Engineer to represent
the value of the improvements completed. If the Board of Supervisors
fails to act within said forty-five-day period, the Board of Supervisors
shall be deemed to have approved the release of funds as requested.
(2) When the applicant has completed all the required improvements, he
shall notify the Board of Supervisors, in writing, by certified or
registered mail, and shall send a copy of such notice to the Township
Engineer. The Board of Supervisors shall, within 10 days after receipt
of such notice, authorize the Township Engineer to inspect the required
improvements. The Township Engineer shall promptly file a report,
in writing, with the Board of Supervisors, and shall mail a copy of
the report to the applicant by certified or registered mail. The report
shall be made and mailed within 30 days after receipt by the Township
Engineer of the aforesaid authorization by the Board of Supervisors.
The report of the Township Engineer shall be detailed and shall indicate
approval or rejection of said improvements, either in whole or in
part. If improvements, or any portion thereof, are not approved by
the Township Engineer, said report shall contain a statement of reasons
for such nonapproval.
(3) Based on the report of the Township Engineer, the Board of Supervisors
shall indicate approval or rejection of the improvements, either in
whole or in part, and if not approved, state reasons for the rejection.
The Board of Supervisors shall, within 15 days of receipt of the Township
Engineer's report, notify the applicant, in writing, by certified
or registered mail, of its actions.
[Amended 6-14-1990 by Ord. No. 90-07]
(4) 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 applicant shall be released
from all liability, pursuant to his security agreement.
(5) If any portion of said improvements is not approved or is 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.
(6) In all cases where the public improvements have been certified to have been properly completed, the Board of Supervisors shall release all of the posted financial security except for an amount equal to 10% of the cost of actual installation of the public improvements. The unreleased financial security will be held until the required maintenance guaranty is posted in accordance with §
121-19 of this chapter.
[Added 6-11-1992 by Ord. No. 92-08]
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.
D. Construction of improvements. Upon approval by the Board of Supervisors of a final plan, the applicant, in addition to all bonds or other security required, shall deliver to the Township a check payable to the Township in an amount equal to 3.5% of the bond or other security. The amount deposited by the applicant shall be used by the Township to cover the costs of assuring the proper construction and completion of improvements, including inspection during installation, inspection upon completion, administrative costs and other related costs. If the amount deposited by the applicant is not sufficient to cover such costs, the applicant shall furnish additional amounts, from time to time, when notified to do so. All amounts furnished by the applicant shall be held in a separate fund and applied by the Township to inspection and administrative costs. The funds deposited by the applicant shall be governed by the provisions of Subsection
E of this section. No lot shall be sold and no permit to erect, alter or repair any building shall be issued with respect to the land included in the final plan until all costs of assuring the proper construction and completion of improvements have been deposited by the applicant.
[Added 8-24-1989 by Ord. No. 89-10]
E. Escrow accounts. Deposits shall be credited to each fund as they
are made, and costs shall be charged against each fund as they are
incurred. The applicant shall be furnished with an accounting thereof
upon request. When the fund is terminated, any excess amount remaining
therein after all costs have been paid shall be refunded to the applicant.
[Added 8-24-1989 by Ord. No. 89-10]
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 Manchester.
The Board of Supervisors shall require the applicant to submit
a maintenance guaranty or other approved guaranty 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
guaranty 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 this
issuance of occupancy permits, the applicant shall submit an as-built
plan showing the location, dimension and elevation of all public 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 shall be submitted to the Township, which shall
distribute one copy to the Township Engineer and retain one copy for
the Township files.