The administration of the financial security shall comply with
the provisions of this article, the most recent version of the MPC,
and other applicable laws of the Commonwealth.
A. Submission of financial security. Final plan applications which include
required improvements that have not been installed shall include a
financial security and memorandum of understanding. (See sample memorandum
available at the Borough Municipal Building.)
(1) Type of financial security. Financial security must comply with the
following and is subject to review by the Borough Solicitor and Borough
Council for adequacy.
(a)
Irrevocable letter of credit. A letter provided by the developer
from a federally chartered financial institution.
(b)
Escrow account. A deposit of cash either with the Borough or
in escrow with a federally chartered financial institution.
(2) General contents. The terms of any financial security documents shall
be acceptable to the Borough Solicitor. In addition to other information
required by the Borough, financial securities shall include the following:
(a)
The amount of secured funds.
(b)
In case of failure on the part of the developer to complete
the specified improvements within a time period specified in a written
agreement, the funds shall be paid to the Borough immediately and
without further action, upon presentation of a signed draft in an
amount necessary to finance the completion of those improvements,
up to the limit of the security.
(c)
The security is irrevocable and may not be withdrawn or reduced
in amount by other than the Borough until released or partially released
by the Borough.
(3) Amount of financial security.
(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 Borough 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 after either the original date schedule for completion
or a rescheduled date of completion. Subsequent to said adjustment,
the Borough 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 (including quantities and unit
cost) of the required improvements, submitted by a developer and prepared
and certified by an engineer to be a fair and reasonable estimate
of such cost. The Borough Council, upon recommendation of the Borough
Engineer, may refuse to accept such estimate for good cause shown.
If the applicant or developer and the Borough Council are unable to
agree on an estimate, then the estimate shall be recalculated and
rectified by another professional engineer licensed and registered
as such in the commonwealth and chosen mutually by the Borough Council
and the applicant or developer. The estimate certified by the third
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 Borough and the applicant
or developer.
(c)
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 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) When all or part of the financially secured improvements are completed,
the developer may notify the Borough Council and request a release
of the financial security. Requests for a reduction of a portion of
the financial security shall be limited to an amount that is at least
a minimum 20% of the original total financial security, unless a smaller
percentage equals at least $100,000.
(2) All requests for release of financial security shall be in writing, by certified or registered mail to the Borough Council, at the Borough Municipal Center, and a copy thereof shall be sent to the Borough Engineer. This notice shall include the as-built plan in accordance with §
318-24.
(3) After receipt of notice for release of financial security, the Borough
Council shall, within 10 days, authorize the Borough Engineer to inspect
all of the aforesaid improvements. The Borough Engineer shall, within
30 days of authorization, file a written report with the Borough Council,
and shall promptly mail a copy of the same to the developer by certified
or registered mail. The report shall be detailed and shall indicate
approval or rejection of said improvements, either in whole or in
part, and if said improvements, or any portion thereof, are not approved
by the Borough Engineer, said report shall contain a statement of
reasons for such rejection.
(4) The Borough Council shall notify the developer, within 15 days of
receipt of the Borough Engineer's report, in writing, by certified
or registered mail, of the action of the Borough Council with relation
thereto.
(5) If any portion of said improvements shall not be approved or shall
be rejected by the Borough Council, the developer shall proceed to
complete the same and, upon completion, the same procedure of notification,
as outlined herein, shall be followed.
(6) A portion of the financial security may be retained as a maintenance guarantee in accordance with §
318-22.
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 Borough Council
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.
The procedure is available for the installation of required
improvements in lieu of placing financial security with the Borough.
A. Authorization for construction. The applicant may receive approval
to construct only the improvements required as part of this chapter
upon receipt of conditional final plan approval with the only outstanding
condition being the guarantee of public improvements, the memorandum
of understanding (See sample memorandum available at the Borough Municipal
Center.) and approvals/permits from other agencies with jurisdiction
grants the authority to install. Required improvements are limited
to streets, street signs, sidewalks, curbs, landscaping required by
this chapter, storm drainage for dedication or which affects adjacent
properties or streets, sanitary sewer facilities for multiple use,
water supply facilities for multiple use, fire hydrants, survey monuments
and other such public improvements.
B. Completion of public improvements.
(1) When all or part of the required improvements are complete, the developer shall notify the Borough Council. Notification of completion of a portion of the required improvements is only necessary should the developer elect to financially secure the remaining improvements in accordance with §
318-19.
(2) Notification of completion of improvements shall be in writing, by certified or registered mail, and a copy thereof shall be sent to the Borough Engineer. This notice shall include the as-built plan in accordance with §
318-24.
(3) After receipt of notice that improvements are completed, the Borough
Council shall, within 10 days, authorize the Borough Engineer to inspect
all of the aforesaid improvements. The Borough Engineer shall, thereupon,
within 30 days of authorization, file a report, in writing, with the
Borough Council, and shall promptly mail a copy of the same to the
developer by certified or registered mail. The report shall be detailed
and shall indicate approval or rejection of said improvements, either
in whole or in part, and if said improvements, or any portion thereof,
are not approved by the Borough Engineer, said report shall contain
a statement of reasons for such rejection.
(4) The Borough Council shall notify the developer, within 15 days of
receipt of the Borough Engineer's report, in writing, by certified
or registered mail, of the action of the Borough Council with relation
thereto.
(5) If any portion of said improvements shall not be approved by the
Borough Council, the developer shall proceed to complete the same
and, upon completion, the same procedure of notification, as outlined
herein, shall be followed.
(6) 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 Borough Council or the Borough
Engineer.
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 Borough Council. No responsibility of any kind with respect to
improvements shown on the plan shall be transferred until the improvements
have been formally accepted. All requests for dedication shall be
made in accordance with Borough rules and regulations, shall include
all information required by the Borough for processing such a request,
and shall be accompanied by any required filing fee.
The Borough Council may, at its discretion, require the developer
to submit a maintenance guarantee or other approved guarantee 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 Borough
Council. Said guarantee shall be 15% of the actual cost of installation
of said improvements and be of the same type of financial security
as required in this article.
Inspections shall be required prior to the start of construction,
during installation of materials and structures, and upon the completion
of all improvements. Prior to the initiation of construction, the
developer shall arrange a pre-construction meeting with the Borough
Engineer or designee so that an inspection schedule can be coordinated
with the construction schedule. The Borough Engineer or designee shall
be notified two working days in advance of any intended date of construction.
The provisions stated herein shall not be construed as mandating periodic
inspections, and the undertaking of periodic inspections shall not
be construed as an acceptance of the work during construction or as
a final inspection of the construction. The Borough, at the expense
of the developer, reserves the right for the Borough Engineer to require
drawing detail or shop drawing, and/or tests by an approved testing
facility to determine whether the improvement complies in all respects
with the requirements of the Borough. A specific schedule and procedure
for information will be established for each project. The following
is intended to describe the format of inspections:
A. Subsoil system: inspection and testing to determine subsoil compaction
to required density, and inspection of subsoil elevation to insure
grade and profile compatibility.
B. Subgrade structure: inspection and testing of subgrade type and required
density.
C. Underground utilities and storm drainage system: inspection and testing
of pipe installation, including service laterals, inlets, manholes,
endwalls, and bridges prior to backfilling. Air testing of water distribution
system to required standards.
D. Concrete curb structure: inspection prior to installation of string
line to show type of curb, grade, and alignment. Material inspection,
including the submittal of all certified material delivery slips.
E. Street subbase course: inspection of materials placed as subbase
prior to installation of base course, including the submittal of all
certified material delivery slips.
F. Street base course: inspection of materials placed as base, including
the submittal of all certified material weight slips.
G. Street wearing course structure: inspection of materials placed as
wearing surface, including the submittal of all certified material
weight slips.
H. Sidewalk structures: inspection of subbase grade and form grade and
alignment prior to any pour.
I. Right-of-way profile: inspection of required finish grade elevations
to limits of street right-of-way.
J. Storm drainage easement structures: inspection of required finish
grade elevations, alignments and profiles to limits of easement.
K. Seeding, sodding and erosion controls: inspection as required to
assure compliance with storm drainage regulations.
Upon completion of all required improvements and prior to final
inspections of improvements, the developer shall submit a plan labeled
"as-built plan," showing the actual location, dimension and elevation
of all existing improvements. In addition, the plan shall demonstrate
that the existing 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 specifically identify all deviations
from the previously approved drawings. The applicant's engineer
shall certify that the construction of the stormwater management facility
was completed in accordance with the plans and specifications as originally
submitted and approved by the Borough. Three paper copies of the plan
shall be submitted to the Borough Manager, or his or her designee,
who shall distribute a paper copy to the Borough Engineer and retain
two copies for the Borough files. The applicant shall also submit
a computer-readable as-built plan in the form specified by the Borough
which includes all of the information contained on the paper copy
of the as-built plan.