The performance guarantee for completion of
required improvements shall meet the following requirements:
A. Security.
(1) The guarantee shall be secured by the credit of any
of the following:
(a)
An irrevocable and unconditional letter of credit
of a federal- or state-chartered lending institution;
(b)
A restrictive or escrow account in a federal-
or state-chartered lending institution; or
(c)
Such other financial security approved by the
Board of Supervisors (which approval shall not be unreasonably withheld),
but not including a second or third mortgage on the unimproved lands.
(2) Such approved security shall provide for, and secure
to the public, the completion of any improvements which may be required
within one year of the date fixed in the development agreement for
the completion of such improvements.
(3) Such financial security shall be posted with a federally
issued or state-chartered lending institution chosen by the party
posting the financial security, or such other approved entity, provided
such institution or entity is authorized to conduct such business
within the state.
(a)
The Board of Supervisors may require that evidence
be provided that such institution or entity has sufficiently adequate
and secure assets to cover the security.
(b)
The Township shall be the authorized signatory
on any account in which the escrow funds are held.
B. Amount of security.
(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 estimated as of 90 days following the date
scheduled for completion by the developer in the official development
schedule, and within the process for increases to cover inflation
as permitted by the Pennsylvania Municipalities Planning Code.
(2) The cost of the improvements shall be established
by an estimate prepared by a Pennsylvania registered professional
engineer, which shall be reviewed by the Township Engineer, within
the arbitration process permitted by the Pennsylvania Municipalities
Planning Code.
(3) If the party posting the financial security requires
more than one year from the date of posting of the financial security
to complete the required improvements, the amount of financial security
may be increased by a maximum of an additional 10% for each one-year
period beyond the first anniversary date from posting of financial
security or to an amount not exceeding 110% of the cost of completing
the required improvements as reestablished on or about the expiration
of the preceding one-year period by using the above procedure.
(4) Inspection fees. The amount of financial security
shall also include an additional 5% of the estimated cost of completion
of the work to guarantee payment of inspection fees and related engineering
costs.
C. Multiyear or multistage development. In the case where
development is projected over a period of years, the Board of Supervisors
may authorize submission of final plans by phases/stages of development
subject to such requirements or improvement guarantees concerning
future improvements as it finds necessary for the proper functioning
of each phase and for the eventual development as a whole.
[Added 5-1-2014 by Ord. No. 2014-02]
A. Developer responsibility. If the operation, ownership or control
of any PennDOT-required facilities in relation to, or associated with,
a subdivision or land development (e.g., traffic signals, other traffic
controls or stormwater management facilities) is required by PennDOT
to be with the Township, for so long as the facilities or any replacement
or substitutions thereof shall be in existence and/or required by
PennDOT, the developer shall be responsible for the cost of maintaining
the facilities. This shall include the costs and expenses incident
to the ownership, operation, maintenance, control, repair, replacement,
and insuring of the facilities ("facility maintenance costs"). If
two or more developers are involved in development projects that use
the facilities, either as a result of occurring simultaneously or
where one project is developed and there is subsequent development
that contributes to the use of said facilities, then each developer
shall contribute a proportionate share of the facilities maintenance
costs by paying a proportionate share into the Facility Maintenance
Fund. The responsibility for the facilities shall be attached to the
land via deed or other recorded agreement.
B. Facility Maintenance Fund. The developer shall deliver to the Township
an initial amount reasonably determined by the Township Engineer to
be equivalent to the estimated facility maintenance costs for the
ensuing two-year period, or in the case of multiple developers, a
proportionate share of the estimated costs for the ensuing two-year
period (the "initial maintenance fund"). The initial maintenance fund
and all supplemental deposits shall be held in a separate noncommingled
account. The amount of the Facility Maintenance Fund shall be annually
increased by additional deposits delivered by the developer or developers
in an amount reasonably determined by the Township Engineer to be
equivalent to the estimated facility maintenance costs for the ensuing
two-year period ("supplemental deposits"). The annual review shall
occur at the regular Township Supervisors meeting in January of each
year. Interest shall accrue on the Facility Maintenance Fund, with
the accrued interest calculated and included in the amount necessary
to satisfy the estimated two years of the facility maintenance costs.
The developer shall pay to the Township such amounts as are necessary
to supplement the Facility Maintenance Fund following such annual
review, within 30 days of the date of the Township's written invoice
or statement.
C. Surety and use of fund.
(1)
The funds deposited into the Facility Maintenance Fund shall
be deposited in a money market account, certificate of deposit, or
other instrument or account of the Township's choice, provided that
such account or financial instrument is insured by the Federal Deposit
Insurance Corporation or any similar agency of the United States of
America. The Township shall have the right to withdraw funds from
the Facility Maintenance Fund necessary to pay expenses incurred with
respect to the facility maintenance costs. In the event of any such
withdrawal, the Township shall give written notice thereof to the
developer, specifying the nature of the charge or expense and providing
a written statement thereof. The Township shall be the sole signatory
with respect to the Facility Maintenance Fund; provided, however,
that such fund shall be considered a trust account and shall not be
subject to lien or attachment.
(2)
A developer or developers may request the payment of a lump-sum
amount for the facility maintenance costs, in lieu of the procedure
set forth above, which may be approved at the discretion of the Board
of Supervisors upon the recommendation of the Township Engineer.