A.
No plan shall be finally approved unless the streets shown on such plan have been improved as may be required by this chapter and any walkways, curbs, gutters, streetlights, fire hydrants, shade trees, water mains, sanitary sewers, storm drains, stormwater management facilities or other improvements as may be required by this chapter have been installed in accordance with this chapter, except that the surface course of streets shall not be completed until such time as 90% of the lots in the subdivision or land development have been improved by the construction of a residential dwelling, commercial structure or industrial structure. For the purpose of this article, an improved lot shall be considered completed when all building construction and site improvements are finished to the point that. in the opinion of the Borough, a certificate of occupancy could be issued. In lieu of completion of the surface course of streets as well as in lieu of completion of other improvements required as a condition for final plan approval of a plan, at the discretion of the developer, such developer may deposit with the Borough a letter of credit or other financial security authorized by the Municipalities Planning Code and acceptable to the Borough Council in an amount equal to 110% of the estimated cost of the required improvements at a time 90 days following the date scheduled for completion of the respective improvements by the developer. The estimated cost of the surface course shall be computed separately from the estimated cost of completing the other improvements and shall be based upon the developer's projected timetable for completion of the development.
B.
The amount of financial security required by the Borough shall be based upon an estimate of the cost of the improvements submitted by a 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 Borough, upon the recommendation of the Borough Engineer, may refuse to accept such estimate for good cause shown. If the developer and the Borough 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 Borough and the 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 developer.
C.
Annually, the Borough may adjust the amount of required financial security by redetermining the estimated cost for completion of the uncompleted improvements as of the expiration of the 90th day after either the 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 insure that the financial security equals 110% of the estimated cost of the Borough completing the improvements at a time 90 days following the date scheduled for completion or alternatively reduce the required security so that it equals such amount. Any additional security shall be posted by the developer within 30 days after being notified of the same. The amount of financial security required by the Borough shall be computed in accordance with the Borough's rules and regulations.
D.
As the work of installing the required improvements proceeds, the party posting the financial security may request the Borough to release or authorize the release from time to time such portions of the financial security necessary for the payment to the contractor or contractors performing the work. Any such request shall be in writing addressed to the Borough Council, and the Borough Council shall have 45 days from the receipt of such request to allow the Borough Engineer to certify, in writing, to the Borough Council that such portion of the work has been completed in accordance with the approved plan. Upon such certification, the Borough Council shall authorize release from the required financial security of an amount as estimated by the Borough Engineer as representing the value of the work completed.
E.
The value of the work completed shall be determined by subtracting 110% of the estimated cost of the completion of the remaining uncompleted work from the total amount of security deposited.
F.
At such time as 90% of the lots in the subdivision have been improved as set forth above or if, at the expiration of three years from the date, all of the improvements excepting the surface course have been completed, less than 90% of the lots have been so improved, the Borough may notify the developer to complete the surface course within 60 days from the date of such notice. In computing the sixty-day requirement, the period from October 1 to April 1 shall not be counted.
G.
If at the time the surface course is completed, 90% of the lots are not improved as set forth above, the developer must:
(1)
Post with the Borough financial security in an amount equal to 15% of the reasonable cost of the surface course as security to guarantee that damages to the road or street will not occur during the completion of the improvements on the unimproved lots in such developer's subdivision or land development. The Borough shall hold such financial security and utilize it to pay for the repair of any damage occurring to the road during the period between the commencement of improvements on any particular unimproved lot and the completion of such improvements, irrespective of whether or not it can be established that the damage to the road was caused by contractors or other persons working in and about the construction of such improvements. The financial security shall be in a form acceptable to the Borough.
H.
In lieu of the developer installing the surface wearing course, at the Borough's discretion, the developer may be required to provide the Borough with 110% of the estimated cost of the surface wearing course installation. The Borough would then be responsible for purchasing and installing the surface wearing course. Prior to the Borough installing the surface wearing course, the Borough will conduct an inspection of the development and inform the developer of any defects or deficiencies which must be corrected prior to installing the surface wearing course. The responsibility and cost for all such corrections shall be borne by the developer. If the Borough's actual costs for installation of the surface wearing course exceed 110% of the estimated installation costs, the developer will be responsible to reimburse the Borough for the amount over 110% of the estimated cost. Should the actual installed costs be less than 110% of the estimated costs, the Borough shall reimburse the developer for the overage amount.