Before approving any subdivision plan, the governing body shall
require a written agreement that necessary grading, paving and street
improvements, sidewalks, streetlights, fire hydrants, water mains,
storm sewers and sanitary sewers, as may be required by the Township,
shall be installed by the subdivider in strict accordance with the
design standards and specifications of the Township within a specified
time period.
The governing body shall insure, through receipt of certificates
of compliance submitted and attested by the Township Engineer, that
the required improvements have been installed according to the specifications
of the final plan, or alternately require the posting of adequate
surety to cover the cost for such improvements. The governing body
shall specify one of the following alternatives, or such other alternatives
as may be acceptable, for guaranteeing compliance with the requirements
of this section. Decision of which alternative shall be required is
that of the governing body. Final approval of a plan may not be granted
until the surety required is fully provided. In any event, the required
surety shall be secured along with the written agreement, prior to
any construction or related activity.
A. Completion of improvements prior to final approval. Prior to final
plan approval, the subdivider shall complete, in a manner satisfactory
to the governing body and the Township Engineer, all improvements
required in these regulations as specified in the final subdivision
plan, and as approved by the governing body, and shall dedicate the
same to the Township in accordance with these regulations. Final plan
approval shall not be granted until the dedication of said improvements
has been accepted by the governing body.
B. Guarantee of future performance. In lieu of requiring the completion
of all improvements prior to final plan approval, the Township may,
at its discretion, enter into a contract with the subdivider whereby
the subdivider shall guarantee to complete all improvements required
by this chapter, or otherwise specified by the governing body in a
manner satisfactory to the governing body. To secure this contract,
the subdivider shall provide, subject to the approval of the governing
body, one of the following guarantees:
(1) Surety bond. The subdivider shall obtain a security bond from a surety
bonding company authorized to do business in the Commonwealth of Pennsylvania.
The bond shall be payable to the Township. The amount of financial
security shall be equal to 110% of the cost of the required improvements
as estimated by the subdivider and approved by the Township Engineer.
The duration of the bond shall be until such time as the improvements
are accepted by the Township in accordance with the requirements of
this chapter.
(2) Escrow account:
(a)
The subdivider shall deposit cash, or other instrument readily
convertible into cash at face value, either with the Township, or
in escrow with a bank. The use of any instrument other than cash,
and in the case of an escrow account, the bank with which the funds
are to be deposited, shall be subject to the approval of the governing
body. The amount of financial security shall be equal to 110% of the
cost of the required improvements as estimated by the subdivider and
approved by the Township Engineer.
(b)
In case of an escrow account, the subdivider shall file with
the governing body an agreement between the financial bank and himself
guaranteeing the following:
[1]
That the funds of said escrow account shall be held in trust
until released by the governing body and may not be used or pledged
by the subdivider as security in any other matter during the period;
and
[2]
That in the case of a failure on the part of the subdivider
to complete said improvements, the bank shall immediately make the
funds in said account available to the Township for use in the completion
of those improvements.
(3) Property escrow:
(a)
The subdivider shall offer as a guarantee land or other property,
including corporate stocks or bonds. The value of any such property
shall be at least equal to 110% of the cost, as estimated by the subdivider
and approved by the Township Engineer, of the installation of all
contracted improvements. The County Assessor shall establish the value
of any property so used, and in so doing, shall take into account
the likelihood of a decline in the value of said property during the
guarantee period. The governing body shall retain the right to reject
the use of any property when it believes that the property will be
unusually difficult to sell, or for other reasons such as will inhibit
the Township from exchanging the property for a sufficient amount
of money to complete the required improvements.
(b)
When property is offered as an improvement guarantee, the subdivider
shall:
[1]
Execute an agreement with the trustee, when it is not the governing
body, instructing the trust to release the property to the Township
in the case of default. The agreement shall also state that the property
may be released only upon consent of the governing body. The agreement
shall be placed on file with the Township Secretary;
[2]
File with the governing body an affidavit affirming that the
property to be used as a guarantee is free and clear of any encumbrances
or liens at the time it is to be put in trust; and
[3]
Execute and file with the governing body an agreement stating
that the property to be placed in trust as an improvement guarantee
will not be used for any other purpose or pledged as a security in
any other matter until it is released by the governing body.
(4) Extension of guarantees. If the developer requires more than one
year from the date of posting financial security to complete the required
improvements, the amount of security may be increased in accordance
with the provisions of the Pennsylvania Municipalities Planning Code,
Act 247 of 1968, as amended.
If any road or any drainage facilities in connection therewith
shall be opened, constructed or dedicated for public use or travel,
except in strict accordance with plans approved and recorded as herein
provided, neither the governing body nor any public authorities shall
place, construct or operate any sewer, drain, water pipe or other
facilities, or do any work of any kind in or upon such road; and neither
the governing body nor any other public authorities shall have any
responsibility of any kind with respect to any such road or drainage
facilities, notwithstanding any use of the same by the public; provided,
however, that nothing herein contained shall prevent the laying of
trunk sewers, drains, water or gas mains, if required, by engineering
necessity for the accommodating of other territory.