§ 123-58. Performance guaranty.

A. 

Required security. The applicant shall deposit with the Township 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, streetlights, 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 Subsection F below, water mains and other water supply facilities, fire hydrants and sanitary sewage disposal facilities.

B. 

Type of security. Financial security required herein shall be in the form of a federal or commonwealth chartered lending institution's irrevocable letter of credit, a restrictive or escrow account in such institution or with a financially responsible bonding company or such other type of financial security which the Township may, in its reasonable discretion, approve. The bonding company may be chosen by the party posting the financial security, provided that said bonding company or lending institution is authorized to conduct business within the commonwealth and stipulates that it will submit to Pennsylvania jurisdiction and Montgomery County venue in the event of legal action.

C. 

Purpose. Said 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 completion date fixed in the formal action of approval or development agreement.

[Amended 8-10-1992 by Ord. No. 384]

D. 

When requested by the applicant, the Board of Supervisors shall furnish the developer with a signed copy of a resolution indicating approval of the final plan contingent upon the applicant obtaining a satisfactory financial security. The final plan shall not be signed nor recorded until the financial improvements agreement is executed. The resolution 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 Board of Supervisors.

[Added 8-10-1992 by Ord. No. 384]

Editor's Note: This ordinance also provided for the redesignation of former Subsections D, E, F, G and H, as Subsections E, F, G, H and I, respectively.

E. 

Amount.

[Amended 8-10-1992 by Ord. No. 384]

(1) 

The amount of the financial security shall be equal to 110% of the cost of completion of improvements, estimated as of 90 days following the date set for completion by the developer.

(2) 

The amount of the financial security shall be based on an estimate of the cost of completion of the required improvements, prepared by a licensed professional engineer and submitted by the applicant.

(3) 

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 of the posting date or to an amount not exceeding 110% of the cost of completing the required improvements as reestablished when the preceding one-year period expires, using the above estimating procedure.

F. 

Development in stages. In the case where development is projected over a period of years, the Board of Supervisors may authorize submission of final plans by section or stage of development, subject to such requirements or guaranties 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 Section 508(4) of Act 247.

Editor's Note: See 53 P.S. § 10508(4).

G. 

Water and sewer. 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 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.

H. 

Partial release of performance guaranty. 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 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 the Board of Supervisors, and the Board shall have 45 days from receipt of such request within which to allow the Township 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, the Board 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. The Township 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 the Board his independent evaluation of the proper amount of partial releases. The Board may, prior to final release at the time of completion and certification by the Township Engineer, require retention of 10% of the estimated cost of the aforesaid improvements as per § 123-59D of this Part 1.

I. 

Incomplete improvements. If the required improvements are not completely installed within the period fixed or extended by the Township Board of Supervisors, the Board of Supervisors 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 Section 511 of Act 247, the Municipalities Planning Code, shall be followed.

Editor's Note: See 53 P.S. § 10511.