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Borough of Shippensburg, PA
Cumberland County
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Table of Contents
Table of Contents
No project shall be considered in compliance with this chapter until the streets, street signs, sidewalks and walkways, gutters and curbs within street rights-of-way, buffer planting, shade trees, storm drainage facilities, sanitary sewer facilities for dedication (exclusive of laterals), water supply facilities (exclusive of laterals), fire hydrants, lot line markers, survey monuments, streetlights, street trees and other improvements as may be required have been installed in accordance with this chapter.
A. 
Improvements required. No plan shall be signed by this Commission and/or borough for recording in the office of the Cumberland or Franklin County Recorder of Deeds unless all improvements required by this chapter have been installed in accordance with this chapter, except as provided in § 137-21.
B. 
Improvement construction. Upon approval of the preliminary plans specified in this chapter, the applicant may construct the required improvements shown on the plan. The developer shall indicate the intent to construct the required improvements by executing the applicable Memorandum of Understanding to be submitted at the time an application is made for approval of a preliminary plan.
C. 
Inspection of required improvements. As stipulated in the executed Memorandum of Understanding, the Municipal Engineer shall be responsible for inspection and approval of the required improvements. The Engineer and developer shall agree upon a notification procedure and a schedule of inspections to be made during construction and upon completion of all improvements.
D. 
Recording of final plan. Upon completion of the required improvements and notification from the Municipal Engineer that all improvements have been completed in accordance with this chapter, the developer may proceed to submit final plans. Final plans shall be prepared and submitted in conformance with the requirements of this chapter. Upon review and approval of the final plans by the borough as stipulated in this chapter, the plans may be recorded in the office of the Cumberland or Franklin County Recorder of Deeds. The final plans shall be recorded before the sale of any lots or the construction and occupancy of buildings shown on the plans.
A. 
General provisions.
(1) 
In lieu of the construction and completion of the improvements required by this chapter prior to recordation, the developer may deposit final security in an amount sufficient to cover the costs of such improvements or common amenities. Said improvement construction guaranty shall be prepared in accordance with this chapter and is subject to the acceptance by the municipality or the Authority, as the case may be. The developer shall indicate the intent to provide an improvement construction guaranty by executing the applicable Memorandum of Understanding to be submitted as stipulated at the time application is made for approval of a final plan.
(2) 
The administration of improvement construction guaranties shall comply with the provisions of this article and other applicable laws of the commonwealth.
(3) 
All guaranties shall be prepared by the developer in the form required by the municipality or the Authority, as the case may be.
(4) 
In the case of stormwater facilities, all facilities which are proposed to be constructed in the overall development shall be constructed in the initial phase of construction, unless it is not feasible to complete such facilities, in which case the developer may propose construction of temporary facilities in subsequent phases of the development for the purpose of ensuring that stormwater is managed in the entire proposed development, so as to ensure the integrity of the facilities whether or not the subsequent pleases are completed. Bonding for stormwater facilities shall continue until all stormwater facilities have been completed.
[Added 8-5-1997 by Ord. No. 681, approved 8-5-1997]
B. 
Form of financial security. The following are acceptable forms of guaranties. All other forms of guaranties must be individually approved by the borough.
(1) 
Surety performance bond. A security bond from a surety bonding company authorized to do business in the Commonwealth of Pennsylvania. The bond shall be payable to the municipality or the Authority.
(2) 
Escrow account. A deposit of cash either with the municipality or Authority accepting the improvement of in escrow with a federal or commonwealth chartered financial institution. In the case of an escrow account, the developer shall file, with the local municipality or Municipal Authority, an agreement between the financial institution and himself guaranteeing the following:
(a) 
That the funds of said escrow account shall be held in trust until released by the municipality or Authority and may not be used or pledged by the developer as security in any other matter during that period.
(b) 
In the case of a failure on the part of the developer to complete said improvements, the institution shall immediately make the funds in said account available to the municipality or Municipal Authority for use in the completion of those improvements.
(3) 
Letter of credit. An irrevocable commercial letter provided by the developer from a federal or commonwealth chartered financial institution or other reputable institution. This letter shall be deposited with the municipality or Authority and shall certify the following:
(a) 
The amount of credit.
(b) 
In case of failure on the part of the developer to complete the specified improvements within a time period specified in a written agreement between the municipality or Municipal Authority, the creditor shall pay to the municipality or Authority, immediately and without further action, upon presentation of a sight draft drawn on the issuing lending institution in an amount to which the municipality or Authority is entitled or upon presentation of the original letter of credit such funds as are necessary to finance the completion of those improvements, up to the limit of credit stated in the letter.
(c) 
The letter of credit is irrevocable and may not be withdrawn or reduced in amount, until released or partially released by the municipality or Authority.
C. 
Amount of guaranty.
(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. Annually, the municipality or Authority may adjust the amount of the financial security by comparing the actual cost of the improvements which have been completed and the 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 developer shall 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 subsection.
(2) 
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 municipality or Authority, upon the recommendation of the Municipal Engineer, may refuse to accept such estimate for good cause shown. If the applicant or developer and the municipality or Authority are unable to agree upon an estimate, then the estimate shall be recalculated and recertified by another professional engineer licensed as such in this commonwealth and chosen mutually by the municipality 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 applicant or developer and the municipality or Authority.
(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 an additional 10% for each one-year period beyond the first anniversary date from each 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 bidding procedure.
D. 
Protection of final phases. In the case where development is projected over a period of years, the Planning Commission may authorize submission of final plats by section 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.
E. 
As-built plan. After final plan approval and upon completion of all required improvements, the developer shall submit an as-built plan showing the location, dimension and elevation of all improvements. Such plan shall indicate that the required grading, drainage structures and/or drainage systems and erosion and sediment control practices have been installed in substantial conformance with the previously approved final plan. The as-built plan shall specify all deviations from the previously approved drawings. Five copies of the plan shall be submitted to the borough.
F. 
Partial release of funds. As the work of installing the required improvements proceeds, the party posting the financial security may request the municipality or Authority 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 borough and shall be accompanied by as-built drawings. The borough or Authority shall have 45 days from receipt of such request within which to allow the Municipal Engineer or Authority engineer, as appropriate, to certify, in writing that such portion of the work upon the improvements has been completed in accordance with the approved plat. Upon such certification the borough or Authority shall authorize release by the bonding company or lending institution of an amount fairly representing the value of the improvements completed. If the borough or Authority fails to act within said forty-five-day period, the borough shall be deemed to have approved the release of funds as requested. Prior to final release at the time of completion and certification by its engineer, the borough or Authority may require retention of 10% of the estimated cost of the aforesaid improvements.
G. 
Release from improvement bond.
(1) 
When the developer has completed all of the necessary and appropriate improvements, the developer shall notify the borough or Authority that will accept dedication of the improvements, in writing, by certified or registered mail, of the completion of the aforesaid improvements and shall send a copy thereof to the Municipal Engineer or Authority's engineer. The borough or Authority shall, within 10 days after receipt of such notice, direct and authorize its engineer to inspect the improvements. A detailed report of the inspection shall be prepared and mailed to the borough or the Authority within 30 days of such authorization. A copy of the report shall also be mailed by registered or certified mail to the developer. The report shall contain the engineer's recommendations of approval or rejection, either in whole or in part, of any improvements. If any improvement is not approved by the engineer, the engineer shall report to the borough or Authority the conditions and reasons upon which the disapproval is based.
(2) 
The borough or Authority shall notify the developer within 15 days of receipt of the engineer's report, in writing by certified or registered mail, of the decision to accept or not accept the improvements.
(3) 
If the borough or Authority or the Municipal Engineer or engineer for the Authority 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 agreement.
(4) 
If any portion of said improvements shall not be approved or shall be rejected, the developer shall proceed to complete the same and, upon completion, the same procedure of notification, as outlined herein, shall be followed.
(5) 
Nothing herein, however shall be construed in limitation of the developer's right to contest or question, by legal proceedings or otherwise, any determination.
Inspections required. The Commission or the municipality and/or the Authority which is to inspect the improvement shall require inspections of the plans for correctness and inspections of the construction of the improvements. The applicant shall agree to reimburse the borough and/or Authority for any and all necessary expenses incurred on the inspection of such improvements, including but not limited to engineering services, surveys, administrative costs and legal expenses. Such reimbursement shall be based upon a schedule established by ordinance or resolution. Such expense shall be reasonable and in accordance with the ordinary and customary fees charged by the Municipal Engineer or consultant for work performed for similar services in the community, but in no event shall the fees exceed the rate or cost charged by the engineer or consultant to the municipality or the Authority when fees are not reimbursed or otherwise imposed on applicants.
A. 
In the event that the applicant disputes the amount of any such expense in connection with the inspection, the applicant shall, within 10 working days of the date of billing, notify the municipality or the Authority which performed the inspection that such expenses are disputed as unreasonable or unnecessary. A subdivision or land development application or any approval or permit related to development shall not be delayed or disapproved due to the applicant's request over disputed engineer expenses.
B. 
If, within 20 days from the date of billing, the municipality or the Authority and the applicant cannot agree on the amount of expenses which are reasonable and necessary, then the applicant and public agency shall jointly, by mutual agreement, appoint another professional engineer licensed as such in the Commonwealth of Pennsylvania to review said expenses and make a determination as to the amount thereof which is reasonable and necessary.
C. 
The professional engineer so appointed shall hear such evidence and review such documentation as the professional engineer in his or her sole opinion deems necessary and render a decision within 50 days of the billing date. The applicant shall pay the entire amount determined in the decision immediately.
D. 
In the event that the municipality or the Authority and applicant cannot agree upon the professional engineer to be appointed within 20 days of the billing date, then, upon application of either party, the President Judge of the Court of Common Pleas of the judicial district in which the municipality is located (or if at the time there is no President Judge, then the Senior Active Judge then sitting) shall appoint such engineer, who, in that case, shall be neither the Municipal Engineer nor any professional engineer who has been retained by or performed services for the municipality or the applicant within the preceding five years.
E. 
The developer shall provide at least 24 hours' notice prior to the start of construction of any improvements that are subject to inspection.
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 municipality or Authority by ordinance, resolution, deed or other formal document. 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 improvement shall be accepted for dedication except upon submission of as-built drawings by the developer and inspection of the final construction.
When a municipality and/or Authority has accepted dedication of certain improvements, it may, at its discretion, require the applicant to submit financial security to secure structural integrity of said improvements as well as the functioning of said improvements in accordance with the design and specifications as depicted on the final plans. Such guaranty shall be posted or shown on the application for 18 months after the date of acceptance of improvements. Such financial security shall be of the same type as required to guarantee construction of improvements and shall be 15% of the actual cost of installation of said improvements.