The administration of the financial security
shall comply with the provisions of this article, the MPC, Act 247,
as amended, and other applicable laws of the commonwealth.
A. Submission of improvement guaranty. Final plan applications
that include public improvements that have not been installed shall
include an improvement guaranty in the form of an automatically renewable
financial security. No financial security shall be required or provided
for improvements where financial security is provided to the State
Department of Transportation.
[Amended 11-4-2002 by Ord. No. 2002-9; 2-19-2019 by Ord. No. 2018-13]
(1) Type of financial security, Although the Board of
Supervisors may accept an alternative type of financial security,
commonly used forms such as irrevocable letters of credit and escrow
accounts will be accepted. Such financial security shall be posted
with a bonding company or federal or commonwealth chartered lending
institution chosen by the party posting the financial security, provided
that said bonding company or lending institution is authorized to
conduct such business in the commonwealth, subject to review by the
Township Solicitor for adequacy. See Exhibit IV, Sample Irrevocable
Letter of Credit.
(2) Amount of financial security.
(a)
The amount of financial security shall be equal
to 110% of the cost of completion estimated as of 90 days following
the date scheduled for completion by the developer. Annually, the
Township may adjust the amount of the financial security by comparing
the actual cost of the improvements which have been completed and
estimated cost for the 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 developer to post additional
security in order to assure that the financial security equals said
110%. Any additional security shall be posted by the developer in
accordance with this chapter.
(b)
The amount of financial security required shall
be based upon an estimate of the cost of completion of the required
improvements, submitted by an applicant or developer and prepared
by a professional engineer licensed as such in this commonwealth and
certified by such engineer to be a fair and reasonable estimate of
such cost. The Township, upon the recommendation of the Township Engineer,
may refuse to accept such estimate for good cause shown. If the applicant
or developer and the Township are unable to agree upon an estimate,
the estimate shall be recalculated and recertified by another professional
engineer licensed as such in this commonwealth and chosen mutually
by the Township and the applicant or developer. The estimate certified
by the third engineer 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 applicant or developer.
(c)
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 an additional 10% for each one-year period
beyond the first anniversary date from posting of financial security
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.
(d)
In the case where development is projected over
a period of years, the Board of Supervisors may authorize submission
of final plans by phases, sections or stages of development subject
to such requirements or guaranties 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.
(3) Security agreement. The developer shall declare the
intent to provide an improvement guaranty by executing the security
agreement included in this chapter. The security agreement shall be submitted at the time
application is made for approval of a final plan.
B. Plan approval conditioned upon financial security.
When requested by the developer, in order to facilitate financing,
the Township Board of Supervisors shall furnish the developer with
a signed copy of a resolution indicating approval of the final plan
contingent upon the developer obtaining a satisfactory financial security.
The final plan 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. The extension must be requested
by the applicant in writing.
C. Release of financial security.
(1) As the work of installing the required improvements
proceeds, the party posting the financial security may request the
Board of Supervisors to release or authorize the release of, from
time to time, 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 Board of Supervisors,
and the Board of Supervisors shall have 45 days from receipt of such
request within which to allow the Township Engineer to certify, in
writing, to the Board of Supervisors that such portion of the work
upon the improvements has been completed in accordance with the approval
of the plan. Upon such certification the Board of Supervisors shall
authorize release by the bonding company or lending institution of
an amount as estimated by the Township Engineer fairly representing
the value of the improvements completed or, if the Board of Supervisors
fails to act within said forty-five-day period, the Board of Supervisors
shall be deemed to have approved the release of funds as requested.
The Board of Supervisors may, prior to final release at the time of
completion and certification by its engineer, require retention of
10% of the estimated cost of the aforesaid improvements.
(2) When the developer has completed all of the necessary
and appropriate improvements, the developer shall notify the Board
of Supervisors in writing, by certified or registered mail, of the
completion of the aforesaid improvements and shall send a copy thereof
to the Township Engineer. The Board of Supervisors shall, within 10
days after receipt of such notice, direct and authorize the Township
Engineer to inspect all of the aforesaid improvements. The Township
Engineer shall, thereupon, file a report, in writing, with the Board
of Supervisors, and shall promptly mail a copy of the same to the
developer by certified or registered mail. The report shall be made
and mailed within 30 days after receipt by the Township Engineer of
the aforesaid authorization from the Board of Supervisors; said report
shall be detailed and shall indicate approval or rejection of said
improvements, either in whole or in part, and if said improvements
or any portion thereof shall not be approved or shall be rejected
by the Township Engineer, said report shall contain a statement of
reasons for such nonapproval or rejection.
(3) The Board of Supervisors shall notify the developer
within 15 days of receipt of the Engineer's report, in writing, by
certified or registered mail, of the action of the Board of Supervisors
with relation thereto.
(4) If the Board of Supervisors or the Township Engineer
fails to comply with the time limitation provisions contained herein,
all improvements will be deemed to have been approved and the developer
shall be released from all liability, pursuant to its performance
guaranty bond or other security agreements.
(5) If any portion of said improvement shall not be approved
or shall be rejected by the Board of Supervisors, the developer shall
proceed to complete the same and, upon completion, the same procedure
of notification, as outlined herein, shall be followed.
(6) Documents
for all permit transfers for access and maintenance of stormwater
control systems shall be provided prior to the final release of improvement
guarantee funds.
[Added 6-4-2012 by Ord. No. 2012-06]
(7) If any portion of said improvements are not approved
or are rejected by the Board of Supervisors, the applicant shall proceed
to complete the same and, upon completion, the same procedure of notification
outlined herein shall be followed.
D. Remedies to effect completion of improvements. In
the event that any improvements which may be required have not been
installed as provided in this article or in accord with the approved
final plan, the Board of Supervisors is hereby granted the power to
enforce any financial security by appropriate legal and equitable
remedies. If proceeds of the financial security are insufficient to
pay the cost of installing or making repairs or corrections to all
the improvements covered by said security, the Board of Supervisors
may, at its option, install all or part of such improvements and may
institute appropriate legal or equitable action to recover the funds
necessary to complete the remainder of the improvements. All of the
proceeds, whether resulting from the security or from any legal or
equitable action brought against the applicant, or both, shall be
used solely for the installation of the improvements covered by such
security, and not for any other municipal purpose.
E. Other effects of financial security. If financial
security has been provided in lieu of the completion of the improvements
required as a condition for the final approval of the plan as set
forth in this article, the Township shall not condition the issuance
of building, grading or other permits relating to the erection or
placement of improvements, including buildings, upon the lots or land
as depicted upon the final plan upon actual completion of the improvements
depicted upon the approved final plan. Moreover, if said financial
security has been provided, occupancy permits for any building or
buildings to be erected shall not be withheld following the improvements
of the streets providing access to and from existing public roads
to such building or building as to a mud-free or otherwise permanently
passable condition, as well as the completion of all other improvements
as depicted upon the approved plan, either upon the lot or lots or
beyond the lot or lots in question if such improvements are necessary
for the reasonable use of or occupancy of the building or buildings.
[Amended 12-1-2008 by Ord. No. 2008-17]
All improvements shall be deemed to be private
improvements and only for the benefit of the specific project until
such time as the same have been offered for dedication and formally
accepted by the Board of Supervisors. No responsibility of any kind
with respect to improvements shown on the final plan shall be transferred
until the improvements have been formally accepted. No roads shall
be accepted for dedication until a minimum of 80% of the dwelling
units are completed by phase. Dedications shall include all public
improvements at one time and not piecemeal, i.e., no separation of
sidewalks from roads, unless the plan was approved as such by the
Board of Supervisors. No improvements shall be accepted for dedication
except upon submission of as-built drawings by the developer and inspection
of the final construction by the Township.
[Amended 12-1-2008 by Ord. No. 2008-17]
When the Township has accepted dedication of
certain improvements, the Board of Supervisors may, at its discretion,
require the applicant to submit a maintenance guaranty or other approved
guaranty as specified herein, guaranteeing the structural integrity
as well as function of any improvement shown on the final plan for
a term not to exceed 18 months from the date of acceptance of dedication
by the Board of Supervisors. Said guaranty shall not exceed 15% of
the actual cost of installation of said improvement and be of the
same type of financial security as required in this article. Stormwater
facilities shall be required to be bonded for a period of 18 months
after all public improvements and all principal structures utilizing
that stormwater facility are one-hundred-percent completed.
[Amended 12-1-2008 by Ord. No. 2008-17]
A. Submission. Upon completion of all required improvements
and prior to final inspection of improvements, the applicant shall
submit a plan labeled "Record Plan," showing the location, dimension
and elevation of all improvements. In addition, the plan shall indicate
that the improvements are in substantial conformance with the previously
approved drawings and specifications. The plan shall note all deviations
from the previously approved drawings. Three copies of the plan (two
paper prints and one digital submission) shall be submitted to the
Township, which shall distribute the paper print to the Township Engineer
and retain one paper print and the digital submission for the Township
files. The record plans shall be recorded at the court house.
[Amended 2-19-2019 by Ord. No. 2018-12]
B. Digital submission requirements. All plans and as-built
drawings submitted digitally shall meet the following standards:
(1) All data submitted shall be in compliance with the
Manual of Practice for Professional Land Surveyors in the Commonwealth
of Pennsylvania.
(2) All digital files submitted shall be based on accurate
geometric calculations.
(3) Digital submissions shall have all layers clearly
and separately represented. Included with all digital submissions,
a metadata file shall be included outlining the following:
(a)
A list of all layers, with a description of
what those layers represent.
(b)
A list of all point files and break lines, with
a description of any abbreviations.
(4) All plans must be in Pennsylvania State Plane Coordinate
System South Zone, utilizing the North American Datum of 1983 (NAD83)
and the North American Vertical Datum of 1988 (NAVD88). Units shall
be in U.S. survey feet.
(5) All plans must be submitted in AutoCAD drawing (.dwg),
AutoCAD interchange (.dxf), AreView Shapefile (.shp), or ESRI GeoDatabase
format on CD-Rom or other agreeable format acceptable to the Township.