1. In lieu of the completion of any improvements required as a condition for the final approval of a plat, including improvements or fees required pursuant to § 509(i) of the Municipalities Planning Code being 53 P.S. §§ 10101 et seq., this Ordinance shall provide for the deposit with the municipality of financial security in an amount sufficient to cover the costs of such improvements or common amenities including, but not limited to, roads, stormwater detention and/or retention basins and other related drainage facilities, recreational facilities, open space improvements, or buffer or screen plantings which may be required. Financial security is not required for an improvement in which financial security is required by, and provided to, PennDOT in connection with the issuance of a highway occupancy permit. The amount of financial security shall include costs for inspection of installation of improvements anticipated by the Township during the course of the project. Inspection costs shall include improvements required onsite and offsite, and on Township and State roads.
2. When requested by the developer, the governing body shall furnish the developer with a signed copy of a resolution or letter of contingent approval indicating approval of the final plat contingent upon the developer obtaining satisfactory financial security. The final or record plan shall not be signed or recorded until the financial security agreement is executed, and financial security is posted pursuant to these agreements. 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.
3. Without limitation as to the types of financial security which the Township may approve, which approval shall not be unreasonably withheld, Federal or Commonwealth chartered lending institution irrevocable letters of credit and restrictive or escrow accounts in such lending institutions shall be deemed acceptable financial security for the purposes of this Section. 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 within the Commonwealth. Such security shall provide for, and secure to the public, the completion of any improvements on or before the date fixed in the formal action of approval or accompanying agreement for completion of such improvements.
4. Amount of Financial Security. The amount of financial security shall be equal to 110 percent of the estimated cost of the required improvements for which financial security is to be posted. The cost of the required improvements shall be estimated as of 90 days following the date scheduled for the completion of said improvements. Annually, the municipality 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 rescheduled date of completion. Subsequent to such said adjustment, the municipality may require the developer to post additional security in order to assure that the financial security equals 110 percent.
5. Basis for Establishing Amount of Security.
A. 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, 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 are unable to agree upon an estimate, then the estimate shall be recalculated and re-certified 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 municipality and the applicant or developer.
B. If the party posting the financial security requires more than 1 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 percent for each 1-year period beyond the first anniversary date from posting of financial security or to an amount not exceeding 110 percent of the cost of completing the required improvements as reestablished on or about the expiration of the preceding 1-year period by using the above bidding procedure or as established by the Township Engineer. In the case where development is projected over a period of years, the Supervisors (or the planning agency) may authorize submission of final plans 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 subdivision or land development.
6. Dispute over Amount of Financial Security. Whenever a dispute may arise between an applicant or developer and the Township in that neither party can reach an accord or the amount of financial security to be posted, the procedures set forth at § 509(g) within the Municipalities Planning Code being 53 P.S. §§ 10101 et seq. of the Municipalities Planning Code shall be employed.
7. Contracts. As a condition of final plan approval for all subdivisions or land developments, the applicant or developer shall enter into a written agreement with the Township in a manner and form approved by the Township Solicitor, where they shall agree to:
A. Construct or cause to be constructed, at their own expense, all streets, curbs, sidewalks, fire hydrants, street lights, drainage facilities, street signs, monuments, capped sewers, parks and other improvements shown on said final plan when required to do so by the Board of Supervisors in accordance with the final plans, as finally approved, and in strict accordance with the standards and specifications of the Township.
B. Maintain, at their own cost, said streets, curbs, sidewalks, drainage facilities, street signs, parks, monuments, fire hydrants, street lighting, capped sewers and other improvements, until the same are accepted or condemned by the Township for public use, and for a period of 18 months thereafter, to repair and reconstruct the same or any part of one of them when such repair or reconstruction shall be specified by the Board of Supervisors as necessary by reason of faulty construction, workmanship or materials and at or before acceptance of such improvements by the Township.
C. Install or cause to be installed, at their own expense and without any cost to the Township for any part of such installation, street lighting facilities on all streets within and abutting the subdivision or land development if proposed to be dedicated to the Township, as required by this Section.
D. Obtain the easements and releases required when any street, drainage facility or other improvement wherein a subdivision abuts or traverses lands of persons other than the person holding legal title to the lands of the subdivision, at his own cost, and obtain from the owner of lands so abutted or traversed full releases from all damages which may change in grade, construction or otherwise of the street, drainage facility or other improvement, and such releases shall inure to the benefit not only of the owner of the subdivision, but to the Township as well.
E. Promptly reimburse to the Township reasonable attorneys’ and engineers’ fees in accordance with this Ordinance.
F. Construct or cause to be constructed, at their expense, road improvements along the frontage of the tract in accordance with this Ordinance.
G. The development agreement shall provide requirements for insurance to protect the Township and its employees and officials as well as penalties for default of the agreement.
H. Additional conditions as may be determined to be necessary by the Township Solicitor.
(Ord. 163, passed 2-28-2012, § 606; Ord. 172, passed 6-24-2014, § 1)