Borough of Edinboro, PA ASSURANCES OF COMPLETION

[Ord. 474, 4/14/1997, § 501]

The developer shall, for all major subdivisions, agree to complete all improvements in accordance with these regulations or such other improvements as the Borough may require in the public interest as a prerequisite to approval of the final plan. Such improvements include those which will be dedicated to the Borough, an appropriate municipal authority or similar designated agency.

No plan shall receive final plan approval by the Borough Council unless the developer shall have completed all improvements as required by these regulations or shall have filed with the appropriate agency or entity surety or other financial security guaranteeing the completion of such improvements. (See § 22-502.)

The Borough Council shall require the Borough Engineer to check final construction plans for their correctness and to inspect the construction of improvements. The Borough Engineer will be used for all improvements where the Borough is to assume ownership or be responsible for maintenance. The entire cost of plan review and inspection will be borne by the developer in accordance with the Pennsylvania Municipalities Planning Code. [See generally §§ 503(1) and 510(g), 53 P.S. §§ 10503(1), 10510(g).] The review and inspection of improvements to be dedicated to authorities or agencies where the Borough will not maintain same will be in accordance with such organization's practices.

Upon completion of the improvements in accordance with the specifications of this chapter and upon final inspection of the improvements by the Borough Engineer, the developer shall take the final steps to dedicate the improvements and have the same accepted by the Borough. (See Part 12.) Improvements to be dedicated to authorities or agencies where the Borough will not maintain same will be in accordance with such organization's practices.

Improvements may include, but are not necessarily limited to, the following:

Monuments or markers.

Grading, streets, curbs and walks, as required.

Sanitary sewers.

Water service, including fire hydrants.

Storm drainage improvements, as required.

Erosion and sedimentation control measures, as required.

Street lighting.

Street signs.

[Ord. 474, 4/14/1997, § 502]

The purpose of this section is to provide for the filing of financial security as allowed by § 509 of the Municipalities Planning Code, 53 P.S. § 10509. Where the improvement is to be dedicated to an authority or agency other than the Borough, the developer will follow that organization's practices. Where the authority is primarily a financing authority and the Borough will actually operate and maintain the proposed improvement, the bond will run in favor of the Borough. In any event, it is the clear intent of this chapter that all improvements required by this chapter be either installed and approved or the developer will post adequate financial security as required by § 509 of the Municipalities Planning Code, 53 P.S. § 10509, before final plan approval is granted.

An assurance of proper completion of the improvements by financial security in the subdivision shall be made by one of the following methods, or such other method as shall be satisfactory to the Borough of Edinboro:

(1)

A bond, irrevocable letter of credit, restrictive or escrow account, certified check or other security satisfactory to the Borough and in accordance with § 509 of the Municipalities Planning Code, 53 P.S. § 10509, which shall run or be made payable to the Borough.

(2)

In the case of a bond, it shall also:

(a)

Be with surety satisfactory to the Borough.

(b)

Be in form, sufficiency and execution acceptable to the Borough.

The amount of the financial security shall be in an amount determined to equal 110% of the cost of the required improvements in accordance with § 509 of the Municipalities Planning Code, 53 P.S. § 10509, and shall be approved by the Borough Engineer.

The bond, certified check or other securities shall specify the time for the completion of the required improvements. Such time shall be satisfactory to the Borough Council, but not exceed one year. When the improvements have been completed and approved by the Borough, the guarantee shall be released and returned. When a portion of the required improvements has been completed and approved by the Borough, a portion of the bond, monies or security commensurate with the cost of the improvement may be released and returned in accordance with § 509 of the Municipalities Planning Code, 53 P.S. § 10509. In no event shall the entire performance assurance be returned to the developer. At least 15% shall be retained until:

(1)

All improvements have been completed, approved by the Borough Engineer and accepted by the Borough.

(2)

The required maintenance bond (see Part 12) has been filed and accepted by the Borough.

(3)

All the requirements of Part 12, specifically including the filing of as-built drawings, have been met.

In the event that cash or its equivalent is deposited as an improvement guarantee, it shall be held in an escrow fund, which may bear interest to the credit of the developer, but the developer shall pay all costs for the maintaining of such escrow fund.

As the work of installing the required improvements proceeds, the developer posting the financial security may request the Borough Council to release of 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 Borough Council, and the Borough Council shall have 45 days from receipt of such request within which to allow the Borough Engineer to certify, in writing, that such portion of the work on the improvements has been completed in accordance with the approved plan and specifications. On such certification, the Borough Council shall authorize release by the bonding company or lending institution of an amount as estimated by the Borough fairly representing the value of the improvements completed or, if the Borough Council fails to act within said forty-five-day period, the Borough Council shall be deemed to have approved the release of funds as requested.

For circumstances relating to financial security not specifically delineated in the chapter, including the amount of same and the resolution of disagreements relative to such security, it is the intention of the Borough of Edinboro to follow the guidelines and procedures as set forth by §§ 509 and 510 of the Pennsylvania Municipalities Planning Code, 53 P.S. §§ 10509, 10510.

In the event that any improvement which may be required have not been installed as provided in the chapter or in accordance with the approved final plan, the Borough of Edinboro may enforce any corporate bond, or other security by appropriate legal and equitable remedies. It proceeds of such bond, or other security are insufficient to pay the cost of installing or making repairs or corrections to all the improvements covered by said security, the Borough of Edinboro may institute appropriate legal or equitable action to recover the monies necessary to complete the remainder of the improvements. All of the proceeds, whether resulting from the security or from or both, shall be used solely for the installation of the improvements covered by such security, and not for any other Borough purpose.