[Amended 6-5-1991 by Ord. No. 104]
In lieu of completion of any improvements as required as a condition
for the final approval of a plan, including improvements or fees required
pursuant to Section 509(i) of the Pennsylvania Municipalities Planning
Code,[1] as amended, the applicant may deposit with the Borough
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 planting which may be required. The amount of financial
security to be posted for the completion of 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 applicant.
The Borough Council may annually adjust the amount of financial security
in accordance with Section 509 of the Pennsylvania Municipalities
Planning Code, as amended.[2] In the case where development is projected over a period
of years, the Borough Council may authorize submission of final plans
by section or stages of development, subject to such requirements
or guarantees 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.
A.
As the work of installing the required improvements proceeds, the
party posting the financial security may request the Borough Council
to release or authorize the release, from time to time, of such portion
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 Council, and the Borough Council
shall have 45 days from receipt of such request within which to allow
the Borough Engineer to certify, in writing, to the Borough Council
that such portion of the work upon the improvements has been completed
in accordance with the approved plan. Upon such certification, the
Borough Council shall authorize release by the bonding company or
lending institution of an amount as estimated by the Borough Engineer
fairly representing the value of the improvements completed or, if
the Borough Council fails to act within said forty-five-day period,
the Borough Council shall be deemed to have approved the release of
funds as requested. The Borough Council 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.
B.
The Borough Council may prescribe, by resolution, that applicants
shall reimburse the Borough for the reasonable and necessary expenses
incurred for the inspection 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 plat, the Borough Council is hereby granted the power
to enforce any corporate bond, or other security, by appropriate legal
and equitable remedies. If proceeds of such bond or other security
are insufficient to pay the cost of installing or making repairs or
corrections to all the improvements covered by said security, the
Borough Council may, at its option, install part of such improvements
in all or part of the subdivision or land development and may institute
appropriate legal or equitable action to recover the moneys 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 developer, or both, shall be used solely
for the installation of the improvements covered by such security,
and not for any other municipal purpose.
Upon acceptance of dedication of the required improvements to
the Borough or any Borough authority, the developer shall post financial
security of the nature as is provided in the Pennsylvania Municipalities
Planning Code,[1] as amended, to secure structural integrity of said improvements,
as well as the functioning of said improvements in accordance with
the design and specifications as depicted in the final plan, for a
term of 18 months from the date of acceptance of dedication. Said
financial security shall be in the amount of 15% of the actual cost
of installation of the improvements.
[1]
Editor's Note: See 53 P.S. § 10101 et seq.
