The administration of the financial security shall comply with
the provisions of this article, the MPC, Act 247, current edition, and other applicable laws of the commonwealth.
A. Submission of improvement guarantee. Final plan applications that
include public improvements that have not been installed, shall include
an improvement guarantee in the form of financial security.
(1) Type of financial security. Although the Board of Supervisors may
accept an alternative type of financial security, commonly used forms
such as irrevocable letters of credit and escrow accounts will be
accepted. Such financial security shall be posted with a bonding company
or federal- or commonwealth-chartered lending institution chosen by
the party posting the financial security, providing said bonding company
or lending institution is authorized to conduct such business in the
Commonwealth of Pennsylvania, subject to review by the Township Solicitor
for adequacy.
(2) 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 Township 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 Township 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 Township,
upon the recommendation of the Township Engineer, may refuse to accept
such estimate for good cause shown. If the applicant or developer
and the Township are unable to agree upon an estimate, the estimate
shall be recalculated and recertified by another professional engineer
licensed as such in this commonwealth and chosen mutually by the Township
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 Township
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 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.
(d)
In the case where development is projected over a period of
years, the Board of Supervisors may authorize submission of final
plans by phases, sections 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.
(3) Security agreement. The developer shall declare the intent to provide
an improvement guarantee by executing the security agreement contained
in Appendix 11. The security agreement shall be submitted at the time
application is made for approval of a final plan.
B. Plan approval conditioned upon financial security. When requested
by the developer, in order to facilitate financing, the Township Board
of Supervisors shall furnish the developer with a signed copy of a
resolution indicating approval of the final plan contingent upon the
developer obtaining a satisfactory financial security. The final plan
shall not be signed nor recorded until the financial improvements
agreement is executed. The resolution or letter of contingent approval
shall expire and be deemed to be revoked if the financial security
agreement is not executed within 90 days unless a written extension
is granted by the Board of Supervisors; such extension shall not be
unreasonably withheld and shall be placed in writing at the request
of the developer. The extension must be requested by the applicant
in writing.
C. Release of financial security.
(1) As the work of installing the required improvements proceeds, the
party posting the financial security may request the Board of Supervisors
to release or authorize the release, from time to time, such portions
of the financial security necessary for payment to the contractor
or contractors performing the work. Any such requests shall be in
writing addressed to the Board of Supervisors, and the Board of Supervisors
shall have 45 days from receipt of such request within which to allow
the Township Engineer to certify, in writing, to the Board of Supervisors
that such portion of the work upon the improvements has been completed
in accordance with the approval of the plan. Upon such certification,
the Board of Supervisors shall authorize release by the bonding company
or lending institution of an amount as estimated by the Township Engineer
fairly representing the value of the improvements completed or, 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. The Board of Supervisors may, prior to final
release at the time of completion and certification by its engineer,
require retention of 10% of the estimated cost of the aforesaid improvements.
(2) When the developer has completed all of the necessary and appropriate
improvements, the developer shall notify the Board of Supervisors
in writing, by certified or registered mail, of the completion of
the aforesaid improvements and shall send a copy thereof to the Township
Engineer. The Board of Supervisors shall, within 10 days after receipt
of such notice, direct and authorize the Township Engineer to inspect
all of the aforesaid improvements. The Township Engineer shall, thereupon,
file a report, in writing, with the Board of Supervisors, and shall
promptly mail a copy of the same to the developer 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
from the Board of Supervisors; said 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, shall
not be approved or shall be rejected by the Township Engineer, said
report shall contain a statement of reasons for such nonapproval or
rejection.
(3) The Board of Supervisors shall notify the developer within 15 days
of receipt of the Engineer's report, in writing by certified
or registered mail, of the action of the Board of Supervisors with
relation thereto.
(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 developer shall be released
from all liability, pursuant to its performance guaranty bond or other
security agreements.
(5) If any portion of said improvement shall not be approved or shall
be rejected by the Board of Supervisors, the developer shall proceed
to complete the same and, upon completion, the same procedure of notification,
as outlined herein, shall be followed.
D. Remedies to effect completion of improvements. In the event that
any improvements which may be required have not been installed as
provided in this article or in accord with the approved final plan,
the Board of Supervisors is hereby granted the power to enforce any
financial security by appropriate legal and equitable 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.
E. Other effects of financial security. If financial security has been
provided in lieu of the completion of improvements required as a condition
for the final approval of the plan as set forth in this article, the
Township shall not condition the issuance of building, grading or
other permits relating to the erection or placement of improvements,
including buildings, upon the lots or land as depicted upon the final
plan upon actual completion of the improvements depicted upon the
approved final plan. Moreover, if said financial security has been
provided, occupancy permits for any building or buildings to be erected
shall not be withheld as long as the improvements of the streets providing
access to and from existing public roads to such building or building
as to a mud-free or otherwise permanently passable condition, as well
as the completion of all other improvements as depicted upon the approved
plan, either upon the lot or lots or beyond the lot or lots in question
if such improvements are necessary for the reasonable use of or occupancy
of the building or buildings.
[Amended 7-25-2004 by Ord. No. 2004-4]
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 in accordance with current Township procedures.
No responsibility of any kind with respect to improvements shown on
the final plan shall be transferred until the improvements have been
formally accepted. No improvements shall be accepted for dedication
until submission of as-built drawings, sealed by a professional surveyor,
engineer, or landscape architect in accordance with the Pennsylvania
Municipalities Planning Code, from the developer and inspection of the final construction
by the Township. As-built drawings shall be in the form of full-size
twenty-four-inch-by-thirty-six-inch reproduction Mylars which depict
conditions as constructed. In addition, the plan shall indicate that
the improvements are in substantial conformance with the previously
approved drawings and specifications. The plan shall note all deviations
from the previously approved drawings. Three copies of the plan (two
paper prints and one plastic transparency) shall be submitted to the
Township, who shall distribute the paper prints to the Township Engineer
and retain one paper print and the plastic transparency for the Township
files. A complete computer-readable file of the as-built drawings
shall also be submitted to the Township.
When the Township has accepted dedication of certain improvements,
the Board of Supervisors may, at its discretion, require the applicant
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 Board of
Supervisors. Said guarantee 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.