Before approving any final subdivision or site plan, the governing body shall require a written agreement, and appropriate financial surety as specified in §
380-59 hereinbelow, that necessary grading, paving and street improvements, sidewalks, streetlights, fire hydrants, water mains, storm sewers and sanitary sewers, and setting of monuments, as may be required by the Township, shall be installed by the developer 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
may also insure, through the posting of bonds or other surety acceptable
to the Township, the maintenance of existing public rights-of-way
and road surfaces which are in any manner utilized for transport or
related purposes during development and construction associated with
subdivision development. 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 by the governing
body 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 developer 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. The cost
associated with the Township inspection of the site infrastructure
improvements will be at the developer's expense and will be performed
on a time and material basis as required by the Township Engineer.
B. Guarantee of future performance.
(1) 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 developer whereby the developer 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.
(2) When requested by the developer in order to facilitate financing,
the governing body shall furnish the developer with a signed copy
of a resolution indicating approval of the final plat contingent upon
the developer obtaining a satisfactory financial security. The final
plat or record plan shall not be signed nor recorded until the financial
improvements agreement is executed. The resolution or letter of contingent
approval shall expire and be deemed to be revoked if the financial
security agreement is not executed within 90 days, unless a written
extension is granted by the governing body; such extension shall not
be unreasonably withheld and shall be placed, in writing, at the request
of the developer.
(3) To secure this contract, the developer shall provide, subject to
the approval of the governing body, one of the following guarantees:
(a)
Surety bond. The developer 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
developer 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.
(b)
Escrow account. The developer shall deposit cash, or other instrument
readily convertible into cash at face value, either with the Township
or in escrow in 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 developer and
approved by the Township Engineer. In case of an escrow account, the
developer 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 developer as security in any other matter during the period;
and
[2]
That, in the case of a failure on the part of the developer
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.
(c)
Property escrow. The developer 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 developer and approved by the Township Engineer,
of the installation of all contracted improvements. Property value
shall be determined by means acceptable to the Township and 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 that it will inhibit the Township from exchanging the property
for a sufficient amount of money to complete the required improvements.
When property is offered as an improvement guarantee, the developer
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 Zoning/Code Enforcement
Officer.
[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.
(d)
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 shall be increased to assure that financial security equals 110%. Any additional security will be posted by the developer in accordance with §
380-59.
If any road or any drainage facility 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 authority shall
place, construct or operate any sewer, drain, water pipe or other
facility, or do any work of any kind in or upon such road; and neither
the governing body nor any other public authority shall have responsibility
of any kind with respect to any such road or drainage facility, 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.