[Amended 7-18-2016 by Ord. No. 2016-04]
A. Completion of improvements or guarantees.
(1) No subdivision or land development plan shall be granted final approval
unless the streets, curbs, gutters, sidewalks, walkways, streetlights,
water mains, sanitary sewers, fire hydrants, storm sewers, stormwater
detention and/or retention basins, other related drainage facilities,
all required landscaping, recreational facilities, open space improvements
and other infrastructure improvements as required by this chapter
have been provided and installed in accordance with this chapter.
(2) In lieu of the completion of any improvements, which may be required
as a condition for the final approval of the subdivision or land development
plan, including improvements and fees required by this chapter, the
applicant shall deposit with the Township an amount as hereinafter
calculated to cover the costs of such required improvements or common
amenities including, but not limited to, streets, curbs, gutters,
walkways, streetlights, water mains, sanitary sewers, fire hydrants,
storm sewers, stormwater detention and/or retention basins, other
related drainage facilities, all required landscaping, recreational
facilities, open space improvements and other required improvements.
A written improvements agreement in the form required by the Township
shall be required at the time that security is posted as a requirement
of plan approval.
B. Certification of approval.
(1) When requested by the applicant, to facilitate financing, the Board
of Supervisors shall furnish the applicant with a signed copy of a
resolution indicating approval of the final plan contingent upon the
applicant obtaining satisfactory financial security and executing
a development agreement.
(2) The final plan shall not be signed nor recorded until the financial
security is tendered and a development agreement is executed. The
resolution or letter of contingent approval shall expire and be deemed
to be revoked if the financial security is not tendered and the development
agreement is not executed within 90 days of the date of the resolution
or contingent approval. The Board of Supervisors may, at its discretion,
grant a written extension which shall be placed in writing at the
request of the applicant.
C. Acceptable security.
(1) Security acceptable to the Township shall provide for, and secure
to the public, the completion of any improvements which may be required,
with completion to be on or before the date fixed in the formal action
of approval or the written improvements agreement.
(2) Acceptable security may be in the form of cash deposits or escrow
accounts established by the applicant with the Township, to be held
within Township accounts, to the extent the improvements secured are
of a limited scope and nature, making the use of other forms of institutional
security unavailable or uneconomical to the applicant.
(3) Additional acceptable security shall be federal- or commonwealth-chartered
lending institution irrevocable letters of credit, or restrictive
escrow accounts in such a lending institution, extending for a term
of one year beyond completion of all improvements. The escrow account
agreements and letters of credit shall contain automatic renewal clauses,
subject to a minimum of ninety-day advance notice by the institution
to the Township of any intent not to renew. The escrow account agreements
and the letters of credit shall also include automatic 10% annual
increases covering uncompleted improvements, for each year beyond
the initially stated completion date. The federal- or commonwealth-chartered
lending institution shall be chosen by the applicant, provided that
such institution is authorized to conduct business within the Commonwealth
of Pennsylvania and has a branch or lending office open for public
business at a location within 20 miles of Union Township. The escrow
account agreement or the letter of credit issued by the institution
shall provide unconditionally that payment to the Township, on the
escrow agreement or letter of credit, shall be made immediately by
the institution, upon written demand by the Township, without any
determination of conditions or facts pertaining to the related contractual
agreement between the applicant and the Township.
(4) To the extent a surety company, duly licensed to transact a surety
business in the Commonwealth of Pennsylvania, is prepared to write
for the applicant a subdivision performance and payment bond, in a
contractual form acceptable to the Township, which includes at a minimum
the same protections for the public as set forth above for escrow
accounts and letters of credit, a subdivision performance and payment
bond may be an acceptable form of security. To the extent, however,
that the Township determines the form of the surety bond does not
afford the same protections to the public as those provided under
the terms applicable to escrow accounts and letters of credit, the
surety bond will not be an acceptable form of security.
(5) All administrative, engineering and legal fees, costs and expenses
of the Township associated with the preparation, review, consideration,
monitoring and enforcement of the improvements security shall be reimbursed
to the Township by the applicant.
D. Amount of security.
[Amended 7-18-2016 by Ord. No. 2016-04]
(1) The amount of financial security to be posted for the completion
of the required improvements shall be equal to 110% of the cost of
completion of the improvements, estimated by the applicant and subject
to the approval by the Township, including administrative, engineering,
and legal fees, costs and expenses. The estimate shall be based on
the costs and expenses as projected to be in effect at a point in
time 90 days following the initially stated completion date for the
improvements, as provided for in the improvements agreement.
(2) The estimate of the cost of completion and inspection of the required
improvements, along with associated administrative, engineering, and
legal costs and expenses, shall initially be submitted by the applicant,
prepared on behalf of the applicant by a professional engineer licensed
as such in the commonwealth, and certified by such engineer to be
a fair and reasonable estimate of all such costs, fees and expenses
as will be in effect 90 days following the initially stated completion
date.
(3) The Township, upon the recommendation of the Township Engineer, may
refuse to accept such estimate for good cause shown. If the applicant
and the Township are not able to agree upon an estimate, then the
estimate shall be recalculated and recertified by another professional
engineer, licensed as such in the commonwealth, and chosen mutually
by the Township and the applicant. The estimate certified by the third
engineer shall be presumed fair and reasonable.
(4) The Township shall monitor the amount of financial security on an
annual basis by comparing the actual costs of the improvements which
have been completed and the estimated costs for completion of the
remaining improvements, and associated fees and expenses. The amount
shall be a projection of the costs, fees and expenses as they shall
be in effect 90 days following the projected completion date of the
improvements. The Township shall require the applicant to post additional
security, as may be necessary, in order to assure that the financial
security equals 110% of the remaining improvement costs, plus administrative,
engineering, and legal costs and expenses as specified above. The
calculation of whether or not additional security is required shall
occur after the posting of the automatic 10% annual increase adjustment
has been made to the letter of credit, escrow agreement or security
instrument. To the extent the applicant believes that the financial
security, at the time of the annual review, after automatic increase,
exceeds 110%, then the applicant may submit documentation to the Township
Engineer for consideration of a reduction in the amount of security.
E. Completion in stages. In the case where development is projected
over a period of years, the Township may at its discretion authorize
approval of final plans by section, stages, or phases of development,
with the understanding that no sale of lots and no work within the
areas reserved from development may commence until the required contracts
are signed and the financial security posted with respect to those
areas reserved from development. The Township shall also have the
right to impose additional requirements and conditions in connection
with the phases as they are approved so as to assure that each section
or phase will not be dependent for access or other improvement or
common amenity upon completion of improvements in the subsequent phase
or stage.
F. Releases of escrow.
(1) As the work of installing the required improvements proceeds, the
applicant who has posted the financial security may request the Board
of Supervisors to release or authorize the release, from time to time,
of portions of the financial security.
(2) Any such request shall be in writing addressed to the Board of Supervisors,
and the Board of Supervisors shall have 45 days from receipt of such
request to have the Township Engineer certify, in writing, to the
Township, whether such portion of the improvements has been completed
in accordance with the approved plan and applicable specifications.
Upon certification of completion by the Township Engineer, the Township
shall authorize release by an amount as estimated by the Township
Engineer that fairly represents the value of the improvements completed.
The Township Engineer shall also determine whether, in order to maintain
security at the level of 110% on other uncompleted improvements, the
amount of the release needs to be reduced. Prior to final release,
the Township Engineer shall certify and require a retention of 10%
of the estimated cost.
Where the Township accepts dedication of all or some of the
required improvements following completion, the Township shall require
the posting of financial security to secure structural integrity of
said improvements as well as the functioning of said improvements
in accordance with the design standards and specifications as shown
on the final plan. The maintenance period shall be 18 months from
the date of acceptance of dedication. The financial security shall
be of the same type as described previously in this chapter. The amount
of financial security for maintenance shall be 15% of the actual cost
of the installation of said improvements. A written maintenance agreement
is required in a form acceptable to the Township, with the procedures
for inspections and release of security at the end of the maintenance
period, being the same as set forth in this section for improvements.
If water mains or sanitary sewer lines, or both, along with
apparatus or facilities related thereto, are to be installed under
the jurisdiction and pursuant to the rules and regulations of a public
utility or municipal authority separate and distinct from the Township,
financial security to assure proper completion and maintenance thereof
shall be posted in accordance with the regulations of the controlling
public utility or municipal authority and shall not be included within
the financial security as otherwise required by the Township.
All fees and contributions which may be required for transportation
improvements, recreation facilities, community facilities and/or other
infrastructure improvements shall be paid by the applicant prior to
final approval of the subdivision or land development plan.