The administration of the financial security shall comply with the provisions of this Article
V, 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 the land development agreement or the developer's
letter agreement (see Appendix Nos. 10 and 11).
(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:
[2]
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The security is irrevocable and may not be withdrawn or reduced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 the estimated cost
for the completion of the remaining improvements as of the expiration
of the 90th day after either the original date scheduled 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 licensed and registered in the Commonwealth
of Pennsylvania to perform such duties 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 recertified 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
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 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 office, and a copy thereof shall be sent to the Borough Engineer. This notice shall include the "as-built plan" in accordance with Article
V of this chapter relating to as-built plans.
(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 the 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 Article
V of this chapter relating to maintenance guarantees.
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 installation of public improvements shall comply with the provisions of this Article
V, the most recent version of the MPC, and other applicable laws of the commonwealth. 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 land development
agreement or the developer's letter agreement (see Appendix Nos.
10 and 11) and approvals/permits from other agencies with jurisdiction
to grant the authority to install. Required improvements are limited
to streets, roadways, 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, recreational facilities, open space improvements, and buffer
yards, 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 Article
V of this chapter relating to financial security.
(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 Article
V of this chapter relating to as-built plans.
(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 the 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 administration of maintenance guarantees shall comply with the provisions of this Article
V, the most recent version of the MPC, and other applicable laws of the commonwealth.
A. 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
V.