[Amended 11-26-1990 by Ord. No. 217; 3-8-1993 by Ord. No. 243]
In lieu of the completion of any improvements
required as a condition for final plan approval, financial security
in an amount sufficient to cover the costs of any improvements or
common amenities shall be provided to the Township. When requested
by the applicant, the Township will furnish a signed copy of a resolution
indicating approval of the final plan contingent upon obtaining financial
security. The contingency approval shall expire and be deemed to be
revoked if financial security is not executed within 90 days.
A. Type of security.
(1) Without limitation as to the type of financial security
which the Township may approve, which approval shall not be unreasonably
withheld, irrevocable letters of credit from a federal or commonwealth
chartered lending institution and/or restrictive or escrow accounts
in such lending institutions shall be deemed acceptable financial
security for the purpose of this section. The developer shall be required
to execute an escrow agreement prepared by the Township Solicitor.
(2) Such financial security shall be posted with a bonding
company or federal or commonwealth chartered lending institution chosen
by the developer, builder or subdivider posting the financial security,
provided said bonding company or lending institution is authorized
to conduct business within the commonwealth.
B. Amount. The amount of financial security to be posted
for 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 subdivider/land developer. Annually,
the Township may adjust the amount of the financial security by comparing
the actual cost of improvements which have been completed and the
estimated cost for completion of the remaining improvements as of
the expiration of the 90th day after either the original date scheduled
for completion or a rescheduled date of completion. Subsequent to
said adjustment the Township may require the subdivider/land developer
to post additional security in order to assure that financial security
equals said 110%. Any additional security shall be posted by the subdivider/land
developer in accordance with this subsection.
C. Determination of improvement costs. The amount of
financial security required shall be based upon an estimate of the
cost of completion of the required improvements submitted by the subdivider/land
developer and prepared by a professional engineer licensed in the
Commonwealth of Pennsylvania and certified by such engineer to be
a fair and reasonable estimate of such costs. The Township, upon the
recommendation of the Township Engineer, may refuse to accept such
estimate for good cause shown. If the subdivider/land developer and
the Township are unable to agree upon an estimate, then the estimate
shall be recalculated and recertified by another professional engineer
licensed in the Commonwealth of Pennsylvania and chosen mutually by
the Township and the subdivider or land developer. The third engineer's
certified estimate shall be presumed fair and reasonable, and shall
be the final estimate. In the event that a third engineer is so chosen,
fees for the services of said engineer shall be paid equally by the
Township and the subdivider/land developer.
D. Time limit. Such financial security shall provide
for and secure to the public the completion of all subdivision improvements
for which such security is being posted within one year of the date
fixed on the subdivision plat for completion of such improvements.
E. Delayed completion. If the subdivider, developer or
builder 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 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.
F. Development in stages. In the case where development
is projected over a period of years, the Board of Commissioners may
authorize submission of final plans by section or stages of development
subject to such requirements or guarantees as to improvements in future
sections or stages of development as it finds essential for the protection
of any finally approved section of the development.
G. Water and sewer facilities. 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 Upper Pottsgrove 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 this section.
[Amended 11-26-1990 by Ord. No. 217]
A. Partial release. As the work of installing the required
improvements proceeds, the party posting the financial security may
request the Board of Commissioners to release or authorize the release,
from time to time, of such portions of the financial security necessary
for payment to the contractor(s) performing the work. Any such request
shall be in writing addressed to the Board of Commissioners and subject
to the provisions for release as established in the Pennsylvania Municipalities
Planning Code, as amended.
B. Release in full. The portion of the financial security unencumbered by the post-completion security of Subsection
D of this section shall be released only upon completed installation of the required improvements in accordance with the approved improvements construction plan. Strict compliance with procedures established the Pennsylvania Municipalities Planning Code, as amended, shall be followed with respect to the release of financial security posted by the subdivider, owner, developer, or builder. If the Board of Commissioners falls to comply with the time limitations of the Pennsylvania Municipalities Planning Code, as amended, all improvements will be deemed to have been approved, and the developer shall be released from all liability pursuant to the financial security.
C. Incomplete improvements. If the required improvements
are not completely installed within the period fixed or extended by
the Township Board of Commissioners, the Board of Commissioners shall
declare the financial security in default to collect the amount payable
thereunder. Upon receipt of such amount the Township shall install
such improvements as were covered by the security and are commensurate
with the extent of building development which has taken place in the
subdivision or land development, not exceeding in cost, however, the
amount collected upon the security. Strict compliance with procedures
established by the Pennsylvania Municipalities Planning Code, as amended,
shall be followed.
D. Post-completion security. The developer shall be responsible for maintenance of all subdivision or land development improvements until such improvements are offered for dedication and accepted by the Township and 10% of the performance guarantee shall be held back until a maintenance guarantee as provided for in §
310-55C has been posted.