(a) The applicant shall deposit with the Borough financial security in an amount sufficient to cover the cost of all improvements (including both public and private improvements) and common amenities, including but not limited to streets, walkways, curbs, gutters, street lights, shade trees, stormwater detention and/or retention facilities, pipes and other related drainage facilities, recreational facilities, open space improvements, buffer or screen plantings and, except as provided for in division (f) of this section, water mains and other water supply facilities, fire hydrants, and sanitary sewage disposal facilities.
(b) Financial security required herein shall be in the form of a Federal or Commonwealth chartered lending institution irrevocable letter of credit, a restrictive or escrow account in such institution, or such other type of financial security that the Borough may, in its reasonable discretion, approve.
(c) The financial security shall provide for and secure to the public the completion of all subdivision improvements for which such security is being posted on or before the date fixed in Borough Council's formal action of approval or accompanying agreement for completion of the improvements. The amount of financial security required shall be based upon an estimate of the cost of completion of the required improvements, submitted by the applicant and prepared by a professional engineer, licensed as such in Pennsylvania, and certified by such engineer to be a fair and reasonable estimate of such cost. Borough Council, upon recommendation of the Borough Engineer, may refuse to accept such estimate for good cause shown. If the applicant and the Borough are unable to agree upon an estimate, the estimate shall be determined in accordance with the terms of § 509(g) of the MPC.
(d) In accordance with § 509(f) of the MPC, the amount of financial security shall be equal to 110% of the estimated cost of completion of the required improvements (including landscaping, stormwater management, trails, and any improvement to private properties which are required by the approved plan) for which financial security is to be posted. If the party posting the financial security requires more than one year from the date of posting to complete the required improvements, the amount of financial security shall 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 estimated cost of completing the required improvements as reestablished on or about the expiration of the preceding one-year period by using the above procedure for estimating cost.
(e) Where development is projected to take place over a period of years, Borough Council may authorize submission of final plans by section or stage of development, subject to such requirements or guarantees as to improvements in the future sections or stages of development as it finds essential for the protection of any finally approved section of the development, and consistent with the terms of § 508(4) of the MPC.
(f) 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 the Borough, 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.
(g) As the work of installing the required improvements proceeds, the party posting the financial security may request Borough Council to release or authorize to be released, 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 Borough Council, and the Council shall have 45 days from receipt of such request within which to allow the Borough Engineer to certify, in writing, that such portion of the work upon the improvements has been completed in accordance with the approved plans. Upon such certification, Borough Council shall authorize release by the lending institution of an amount as estimated by the Borough Engineer fairly representing the value of the improvements completed. The Borough Engineer, in certifying the completion of work for a partial release, shall not be bound to the amount requested by the applicant, but shall certify to Borough Council his independent evaluation of the proper amount of partial releases. Borough Council may, prior to final release at the time of completion and certification by the Borough Engineer, require retention of 10% of the estimated cost of the aforesaid improvements as per Section 1292.03.
(Ord. 961, § 413. Passed 8-13-01.)