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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY CREIGHTON, BROOKS, CALTAGIRONE, CARROLL, CLYMER, DAVIS, GEIST, GIBBONS, GINGRICH, GROVE, HELM, KNOWLES, MILLER, MOUL AND MUSTIO, JUNE 23, 2011 |
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| REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 23, 2011 |
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| AN ACT |
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1 | Amending Title 53 (Municipalities Generally) of the Pennsylvania |
2 | Consolidated Statutes, in municipal authorities, further |
3 | providing for purposes and powers. |
4 | The General Assembly of the Commonwealth of Pennsylvania |
5 | hereby enacts as follows: |
6 | Section 1. Section 5607(d)(23) and (30) of Title 53 of the |
7 | Pennsylvania Consolidated Statutes are amended to read: |
8 | § 5607. Purposes and powers. |
9 | * * * |
10 | (d) Powers.--Every authority may exercise all powers |
11 | necessary or convenient for the carrying out of the purposes set |
12 | forth in this section, including, but without limiting the |
13 | generality of the foregoing, the following rights and powers: |
14 | * * * |
15 | (23) To require the posting of financial security to |
16 | insure the completion in accordance with the approved plat |
17 | and with the rules and regulations of the authority of any |
18 | water mains or sanitary sewer lines, or both, and related |
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1 | apparatus and facilities required to be installed by or on |
2 | behalf of a developer under an approved land development or |
3 | subdivision plat as these terms are defined under the act of |
4 | July 31, 1968 (P.L.805, No.247), known as the Pennsylvania |
5 | Municipalities Planning Code. If financial security is |
6 | required by the authority and without limitation as to other |
7 | types of financial security which the authority may approve, |
8 | which approval shall not be unreasonably withheld, federally |
9 | chartered or Commonwealth-chartered lending institution |
10 | irrevocable letters of credit and restrictive or escrow |
11 | accounts in these lending institutions shall be deemed |
12 | acceptable financial security. Financial security shall be |
13 | posted with a bonding company or federally chartered or |
14 | Commonwealth-chartered lending institution chosen by the |
15 | party posting the financial security if the bonding company |
16 | or lending institution is authorized to conduct business |
17 | within this Commonwealth. The bond or other security shall |
18 | provide for and secure to the authority the completion of |
19 | required improvements within one year from the date of |
20 | posting of the security. The amount of financial security |
21 | shall be equal to 110% of the cost of the required |
22 | improvements for which financial security is to be posted. |
23 | The cost of required improvements shall be established by |
24 | submitting to the authority a bona fide bid from a contractor |
25 | chosen by the party posting the financial security. In the |
26 | absence of a bona fide bid, the cost shall be established by |
27 | an estimate prepared by the authority's engineer. If the |
28 | party posting the financial security requires more than one |
29 | year from the date of posting the financial security to |
30 | complete the required improvements, the amount of financial |
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1 | security may be increased by an additional 10% for each one- |
2 | year period beyond the first anniversary date from the |
3 | initial posting date or to 110% of the cost of completing the |
4 | required improvements as reestablished on or about the |
5 | expiration of the preceding one-year period by using the |
6 | above bidding procedure. As the work of installing the |
7 | required improvements proceeds, the party posting the |
8 | financial security may request the authority to release or |
9 | authorize the release of, from time to time, portions of the |
10 | financial security necessary to pay the contractor performing |
11 | the work. Release requests shall be in writing addressed to |
12 | the authority, and the authority shall have 45 days after |
13 | receiving a request to ascertain from the authority engineer, |
14 | certified in writing, that the portion of the work has been |
15 | completed in accordance with the approved plat. Upon |
16 | receiving written certification, the authority shall |
17 | authorize release by the bonding company or lending |
18 | institution of an amount estimated by the authority engineer |
19 | to fairly represent the value of the improvements completed. |
20 | If the authority fails to act within the 45-day period, it |
21 | shall be deemed to have approved the requested release of |
22 | funds. [The authority may, prior to final release at the time |
23 | of completion and certification by its engineer, require |
24 | retention of 10% of the estimated cost of improvements.] If |
25 | the authority accepts dedication of all or some of the |
26 | required improvements following completion, it may require |
27 | the posting of financial security to secure structural |
28 | integrity of the dedicated improvements as well as the |
29 | functioning of the improvements in accordance with the design |
30 | and specifications as depicted on the final plat and the |
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1 | authority's rules and regulations. This financial security |
2 | shall expire not later than 18 months from the date of |
3 | acceptance of dedication and shall be of the same type as set |
4 | forth in this paragraph with regard to that which is required |
5 | for installation of the improvements, except that it shall |
6 | not exceed 15% of the actual cost of installation of the |
7 | improvements. Any inconsistent ordinance, resolution or |
8 | statute is null and void. |
9 | * * * |
10 | (30) Where a sewer or water system of an authority is to |
11 | be extended at the expense of the owner of properties or |
12 | where the authority otherwise would construct customer |
13 | facilities referred to in paragraph (24), other than water |
14 | meter installation, a property owner shall have the right to |
15 | construct the extension or install the customer facilities |
16 | himself or through a subcontractor approved by the authority, |
17 | which approval shall not be unreasonably withheld. The |
18 | authority shall have the right, at its option, to perform the |
19 | construction itself only if the authority provides the |
20 | extension or customer facilities at a lower cost and within |
21 | the same timetable specified or proposed by the property |
22 | owner or his approved subcontractor. Construction by the |
23 | property owner shall be in accordance with an agreement for |
24 | the extension of the authority's system and plans and |
25 | specifications approved by the authority and shall be |
26 | undertaken only pursuant to the existing regulations, |
27 | requirements, rules and standards of the authority applicable |
28 | to such construction. Construction shall be subject to |
29 | inspection by an inspector authorized to approve similar |
30 | construction and employed by the authority during |
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1 | construction. When a main is to be extended at the expense of |
2 | the owner of properties, the property owner may be required |
3 | to deposit with the authority, in advance of construction, |
4 | the authority's estimated reasonable and necessary cost of |
5 | reviewing plans, construction inspections, administrative, |
6 | legal and engineering services. The authority may require |
7 | that construction shall not commence until the property owner |
8 | has posted appropriate financial security in accordance with |
9 | paragraph (23). The authority may require the property owner |
10 | to reimburse it for reasonable and necessary expenses it |
11 | incurred as a result of the extension. If an independent firm |
12 | is employed for engineering review of the plans and the |
13 | inspection of improvements, reimbursement for its services |
14 | shall be reasonable and in accordance with the ordinary and |
15 | customary fees charged by the independent firm for work |
16 | performed for similar services in the community. If the |
17 | authority requires the property owner to reimburse it for |
18 | fees for engineering review of the plans and the inspection |
19 | of the improvements, the authority shall designate by |
20 | resolution a minimum of three approved engineers from |
21 | different firms who are readily available to provide services |
22 | in the municipality, and the property owner may select an |
23 | engineer from this list who shall be the authority's engineer |
24 | for reviewing the plans or inspecting the improvements for |
25 | that particular project. If the property owner selects an |
26 | engineer, only the review and inspection fees by the selected |
27 | engineer may be charged to the property owner. The fees shall |
28 | not exceed the rate or cost charged by the independent firm |
29 | to the authority when fees are not reimbursed or otherwise |
30 | imposed on applicants. Upon completion of construction, the |
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1 | property owner shall dedicate and the authority shall accept |
2 | the extension of the authority's system if dedication of |
3 | facilities and the installation complies with the plans, |
4 | specifications, regulations of the authority and the |
5 | agreement. An authority may provide in its regulations those |
6 | facilities which, having been constructed at the expense of |
7 | the owner of properties, the authority will require to be |
8 | dedicated and which facility or facilities the authority will |
9 | accept as a part of its system. |
10 | (i) In the event the property owner disputes the |
11 | amount of any billing in connection with the review of |
12 | plans, construction inspections, administrative, legal |
13 | and engineering services, the property owner shall, |
14 | within [20 working] 180 days of the date of billing, |
15 | notify the authority and the authority's professional |
16 | consultant that the billing is disputed as excessive, |
17 | unreasonable or unnecessary, in which case the authority |
18 | shall not delay or disapprove any application or any |
19 | approval or permit related to the extension or facilities |
20 | due to the property owner's dispute over the disputed |
21 | billings unless the property owner has failed to make |
22 | payment in accordance with the decision rendered under |
23 | clause (iii) within [30] 180 days after the mailing date |
24 | of such decision. |
25 | (ii) If, within [30] 180 days from the date of |
26 | billing, the [authority] professional consultant and the |
27 | property owner cannot agree on the amount of billings |
28 | which are reasonable and necessary, the property owner |
29 | [and authority] shall have the right to request the |
30 | appointment of another professional consultant to serve |
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1 | as arbitrator. The property owner and the professional |
2 | consultant whose fees are being challenged shall, by |
3 | mutual agreement, appoint a professional of the same |
4 | profession or discipline licensed in Pennsylvania to |
5 | review the billings and make a determination as to the |
6 | amount of billings which is reasonable and necessary. |
7 | (iii) The professional appointed under clause (ii) |
8 | shall hear evidence and review the documentation as the |
9 | professional in his or her sole opinion deems necessary |
10 | and shall render a decision within [60] 50 days of the |
11 | [billing] date of appointment. [The property owner shall |
12 | be required to pay the entire amount determined in the |
13 | decision immediately.] Based upon the decision of the |
14 | arbitrator, the property owner, professional consultant |
15 | or authority shall be required to pay any amounts |
16 | necessary to implement the decision within 60 days. In |
17 | the event the authority has paid the professional |
18 | consultant an amount in excess of the amount determined |
19 | to be reasonable and necessary, the professional |
20 | consultant shall within 60 days reimburse the excess |
21 | payment. |
22 | (iv) In the event that the authority and property |
23 | owner cannot agree upon the professional to be appointed |
24 | within [30] 20 days of the [billing date] request for |
25 | appointment of an arbitrator, the president judge of the |
26 | court of common pleas of the judicial district in which |
27 | the municipality is located, or if at the time there is |
28 | no president judge, the senior active judge then sitting |
29 | upon application of either party shall appoint a |
30 | professional, who shall be neither the authority engineer |
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1 | nor any professional who has been retained by or |
2 | performed services for the authority or the property |
3 | owner within the preceding five years. |
4 | (v) The fee of the [appointed professional for |
5 | determining the reasonable and necessary expenses] |
6 | arbitrator shall be paid by the [applicant] property |
7 | owner if the [amount of payment required in the decision |
8 | is equal to or greater than the original bill] disputed |
9 | fee is sustained by the arbitrator. If the amount of |
10 | payment required in the decision is less than the |
11 | original bill by $2,500 or more, the [authority] party |
12 | charging the disputed fee shall pay the fee of the |
13 | [professional] arbitrator. If the amount of the payment |
14 | required in the decision is less than the original bill |
15 | by $2,499 or less, the [authority] party charging the |
16 | disputed fee and the property owner shall each pay one- |
17 | half of the fee of the [appointed professional] |
18 | arbitrator. |
19 | * * * |
20 | Section 2. This act shall take effect in 60 days. |
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