PRINTER'S NO. 1052
No. 923 Session of 1989
INTRODUCED BY CORMAN, PUNT, SHUMAKER AND HOPPER, MAY 10, 1989
REFERRED TO LOCAL GOVERNMENT, MAY 10, 1989
AN ACT
1 Amending the act of July 31, 1968 (P.L.805, No.247), entitled,
2 as reenacted and amended, "An act to empower cities of the
3 second class A, and third class, boroughs, incorporated
4 towns, townships of the first and second classes including
5 those within a county of the second class and counties of the
6 second class A through eighth classes, individually or
7 jointly, to plan their development and to govern the same by
8 zoning, subdivision and land development ordinances, planned
9 residential development and other ordinances, by official
10 maps, by the reservation of certain land for future public
11 purpose and by the acquisition of such land; to promote the
12 conservation of energy through the use of planning practices
13 and to promote the effective utilization of renewable energy
14 sources; providing for the establishment of planning
15 commissions, planning departments, planning committees and
16 zoning hearing boards, authorizing them to charge fees, make
17 inspections and hold public hearings; providing for
18 mediation; providing for transferable development rights;
19 providing for appropriations, appeals to courts and penalties
20 for violations; and repealing acts and parts of acts,"
21 further providing for impact and tapping fees.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. The title of the act of July 31, 1968 (P.L.805,
25 No.247), known as the Pennsylvania Municipalities Planning Code,
26 reenacted and amended December 21, 1988, (P.L.1329, No.170), is
27 amended to read:
1 AN ACT
2 To empower cities of the second class A, and third class,
3 boroughs, incorporated towns, townships of the first and
4 second classes including those within a county of the second
5 class and counties of the second class A through eighth
6 classes, individually or jointly, to plan their development
7 and to govern the same by zoning, subdivision and land
8 development ordinances, planned residential development and
9 other ordinances, by official maps, by the reservation of
10 certain land for future public purpose and by the acquisition
11 of such land; to promote the conservation of energy through
12 the use of planning practices and to promote the effective
13 utilization of renewable energy sources; providing for the
14 establishment of planning commissions, planning departments,
15 planning committees and zoning hearing boards, authorizing
16 them to charge fees, make inspections and hold public
17 hearings; providing for mediation; providing for transferable
18 development rights; providing for construction of certain
19 improvements by developers and certain fees to be paid to
20 municipalities, municipal authorities and the Department of
21 Transportation in connection with development; providing for
22 appropriations, appeals to courts and penalties for
23 violations; and repealing acts and parts of acts."
24 Section 2. Section 509(a) of the act is amended and the
25 section is amended by adding subsections to read:
26 Section 509. Completion of Improvements or Guarantee Thereof
27 Prerequisite to Final Plat Approval or Connection to Water or
28 Sewer Systems; Imposition of Impact and Tapping Fees by
29 Municipalities, Municipal Authorities and the Department of
30 Transportation.--(a) No plat shall be finally approved unless
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1 the streets shown on such plat have been improved to a mud-free
2 or otherwise permanently passable condition, or improved as may
3 be required by the subdivision and land development ordinance
4 and any walkways, curbs, gutters, street lights, fire hydrants,
5 shade trees, water mains, sanitary sewers, storm sewers and
6 other improvements as may be required by the subdivision and
7 land development ordinance have been installed in accordance
8 with such ordinance. In lieu of the completion of any
9 improvements required as a condition for the final approval of a
10 plat, including improvements or fees required or agreed upon
11 pursuant to [section 509(i)] sections 503(10) and 509(n), (o),
12 (p), (q), (r), (s), (t), (u), (v) and (w), the subdivision and
13 land development ordinance shall provide for the deposit with
14 the municipality of financial security in an amount sufficient
15 to cover the costs of such improvements or common amenities
16 including[, but not limited to,] roads, storm water detention
17 and/or retention basins and other related drainage facilities,
18 [recreational facilities,] open space improvements, or buffer or
19 screen plantings which may be required.
20 * * *
21 (n) The governing body may require an applicant, as a
22 condition for final plat approval, and a municipal authority may
23 require an applicant, as a condition for connection to a water
24 or sewer system, subject to the provisions of this subsection,
25 to construct and dedicate to the municipality, or municipal
26 authority where appropriate, reasonable and necessary street
27 improvements, and water and sewage line extensions located
28 outside the property limits of the subdivision or land
29 development only if such off-site improvements are necessitated
30 by and specifically and uniquely attributable to such
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1 subdivision or land development or improvements within such
2 subdivision or land development. Construction shall be done by
3 the developer or his subcontractor and shall be subject to the
4 specifications and inspection of the governing body or municipal
5 authority. The municipality or municipal authority shall
6 acquire, by eminent domain or otherwise, any easements or rights
7 of way necessary for improvements required under this section
8 and may require the applicant to pay to the municipality or
9 authority all expenses of such acquisition. The applicant shall
10 have standing to intervene in any condemnation proceedings. The
11 municipality shall notify the applicant of any proceedings or
12 negotiations for acquisition of such easements or rights of way
13 and shall obtain the consent and agreement of the applicant to
14 any settlement or agreement to purchase such easements or rights
15 of way.
16 (o) Off-site water and sewer line extensions which may be
17 required under this section and any on-site water and sewer
18 lines or facilities shall not exceed the minimum levels of
19 service, capacity or use necessary to provide adequate service
20 only to such subdivision or land development, calculated using
21 measurable standards in accordance with generally accepted
22 engineering or planning standards. If an approved official plan
23 pursuant to the act of January 24, 1966 (1965 P.L.1535, No.537),
24 known as the Pennsylvania Sewage Facilities Act, requires a
25 greater level of service, capacity or use than the minimum
26 necessary to provide adequate service to the subdivision or land
27 development, the additional cost to increase the level of
28 service, capacity or use to that required by the official plan
29 shall be paid by the municipality or municipal authority unless
30 an agreement is reached between the parties pursuant to
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1 subsection (p).
2 (p) The applicant and municipality or municipal authority
3 may agree to the payment of fees in lieu of the construction and
4 dedication of off-site water and sewer line extensions, which
5 may be required under this subsection, or said parties may enter
6 into a refunding or reimbursement agreement providing for
7 repayment to the applicant of construction costs where the
8 applicant installs line extensions in excess of the minimum
9 levels of service, capacity or use required to provide adequate
10 service to the subdivision or land development, or where other
11 persons subsequently benefit from the line extensions
12 constructed or paid for by the applicant. Such agreements may
13 include provisions for the amount and time and manner of payment
14 of such fees and, the construction schedule of such
15 improvements, and the basis for and timing of refunds or
16 reimbursements to the applicant.
17 (q) If off-site street improvements may be utilized in part
18 by traffic specifically and uniquely attributable to the
19 proposed subdivision or land development and in part by traffic
20 not specifically and uniquely attributable to said subdivision
21 or land development, neither the municipality nor the Department
22 of Transportation in the case of state highways may require the
23 applicant to construct such improvements but a municipality may,
24 for its streets, and the Department of Transportation may, in
25 conjunction with the issuance of a permit required by the act of
26 June 1, 1945 (P.L.1242, No.428), known as the State Highway Law,
27 for, notwithstanding any other provision of this subsection,
28 require the developer to pay a fee which shall not exceed that
29 portion of the cost of such street improvements equal to the
30 percentage that the peak traffic specifically and uniquely
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1 attributable to the subdivision or land development bears to the
2 maximum peak traffic capacity of such street improvement at the
3 level of service existing prior to the proposed subdivision or
4 land development. The calculation of the portion of total
5 capacity of such street improvements allocable to such
6 subdivision or land development shall be calculated hereunder
7 consistent with measurable standards in accordance with
8 generally accepted traffic engineering standards. In no event
9 may a municipality or the Department of Transportation require
10 any fee hereunder for any street improvement located beyond a
11 distance of 1000 feet from the subdivision or land development.
12 (r) Any fee authorized under this section shall, upon its
13 receipt by a municipality, municipal authority or the Department
14 of Transportation be deposited in an interest-bearing account,
15 clearly identifying the specific capital improvements or
16 facilities for which such fee was received. Interest earned on
17 such accounts shall become funds of that account. Funds from
18 such accounts shall be expended for only properly allocable
19 portions of the incurred cost of the construction of the
20 specific improvements or facilities for which the funds were
21 collected.
22 (s) Upon request of any person who paid any fees under
23 subsections (p) or (q) of the section, the municipality,
24 municipal authority or Department of Transportation shall refund
25 such fee, plus interest accumulated thereon from the date of
26 payment, if existing facilities are available and service or use
27 is denied; or, after the fee was collected when service or use
28 was not available, the municipality has failed to commence
29 construction of the improvements or facilities for which such
30 fees were paid within three years from the date such fees were
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1 paid, or construction has not been completed within five years
2 from the date such fees were paid. Upon completion of the
3 improvements of facilities, if the actual amount expended for
4 such construction is less than 95% of the amount properly
5 allocable to the fee paid hereunder plus the interest thereon,
6 the municipality, municipal authority or the Department of
7 Transportation shall refund the difference, including interest,
8 to the person or persons who paid fees for such improvements.
9 (t) No off-site improvements or fees in lieu thereof may be
10 required hereunder which:
11 (1) Constitute the repair, maintenance or replacement of
12 new or existing facilities.
13 (2) Upgrades, updates, expands or replaces existing
14 improvements or facilities to serve existing development in
15 order to meet stricter safety, efficiency, environmental or
16 regulatory standards.
17 (3) Upgrades, updates, expands or replaces existing
18 improvements or facilities or provides new improvements or
19 facilities to provide better service to, or meet the needs
20 of, existing development.
21 (u) No municipality or municipal authority may charge any
22 applicant, developer or user, any tapping, connection or any
23 other fee for the connection to a water or sewer system, as a
24 condition prerequisite to plat approval or connection to such
25 system, or at any other time, except as provided for in this
26 act. No tapping, connection or similar fee collected by a
27 municipality or municipal authority may be sued for operating,
28 maintenance, or replacement expenses or for the payment of any
29 debt service, including, but not limited to, sinking funds,
30 reserve funds, the principal and interest on bonds and the
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1 amount of any loans or interest thereon. As used in this section
2 "operation and maintenance expenses" are those expenditures made
3 during the useful life of the water or sewer system for
4 materials, labor, utilities and other items which are necessary
5 for managing and maintaining the system to achieve the capacity
6 and performance for which the works were designed and
7 constructed; and "replacement expenses" are those expenditures,
8 not capital costs, for obtaining and installing equipment,
9 accessories or appurtenances during the useful life of the
10 system necessary to maintain the capacity and performance for
11 which the system was designed and constructed. Tapping,
12 connection or similar fees shall be payable only at the time of
13 connection to a water or sewer system and shall not exceed the
14 sum of the following fee components, which shall be separately
15 set forth in the applicable ordinance or resolution, including a
16 detailed itemization of all calculations clearly showing how the
17 fee was determined. An amount not to exceed the amount
18 calculated in the following manner:
19 (1) The amount representing all debt service, including,
20 but not limited to, sinking funds, reserve funds, the
21 principal and interest on bonds and the amount of any loans
22 or interest thereon, paid by the municipality or municipal
23 authority to defray the capital cost of developing only such
24 capital facilities or components which are in use as part of
25 the system calculated as of the end of the immediately
26 preceding fiscal year of the municipality or municipal
27 authority shall be added to all capital expenditures made by
28 the municipality or municipal authority for facilities or
29 components which are in use and were not funded by a bond
30 issue or debt for the development of the system as of the end
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1 of the immediately preceding fiscal year.
2 (2) Any gifts, contributions, payments or subsidies to
3 the municipality or municipal authority received from, and
4 not reimbursable to, any Federal, State, county or municipal
5 government or agency or any private person, and that portion
6 of amounts paid to the municipality or municipal authority by
7 a public entity under a service agreement or service contract
8 which is not repaid to the public entity by the municipality
9 or municipal authority, shall then be subtracted from the
10 amount calculated under clause (1).
11 (3) The remainder shall be divided by the total number
12 of service units served by the municipality or municipal
13 authority at the end of the immediately preceding fiscal year
14 and the results shall then be apportioned for each new
15 connection, to produce the system buy-in contribution to the
16 cost of the system. In attributing service units to each
17 connector, the estimated daily flow of water or sewage for
18 the connector shall be divided by the average daily flow of
19 water or sewage to the average single family residence in the
20 service district, to produce the number of service units to
21 be attributed.
22 (v) Every municipality or municipal authority charging a
23 tapping connection or similar fee in excess of $500 shall
24 recompute the tapping fee at the end of each fiscal year of the
25 municipality or municipal authority. Such municipality or
26 municipal authority shall hold a public hearing no more than 60
27 days after the end of the fiscal year, at which the municipality
28 or municipal authority shall present a detailed itemization of
29 all calculations clearly showing how the fee was determined. The
30 revised tapping fee may be imposed upon those who subsequently
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1 connect to the system. The fee may include:
2 (1) An amount not to exceed the actual direct cost to
3 the authority of making the physical connection to the water
4 or sewer line, which may include inspection fees.
5 (2) Where a municipality or municipal authority has
6 entered into a reimbursement or refunding agreement under
7 subsection (p), the municipality or municipal authority may
8 charge to an applicant an amount not to exceed the
9 applicant's pro rata share of the construction costs of off-
10 site water or sewer line extension based upon the applicant's
11 level of service, capacity or use of such line extension.
12 The amount may not exceed the amount payable by the
13 municipality or municipal authority under the reimbursement
14 or refunding agreement to the party who installed or paid for
15 such line extensions.
16 (w) From the time an application for approval of a plat,
17 whether preliminary or final, or an application for connection
18 to a water or sewer system is duly filed, as provided by the
19 applicable ordinance or resolution, and while such application
20 is pending approval or disapproval, no change or amendment to
21 any ordinance or resolution, or the amount of any fee authorized
22 hereunder, shall affect the decision on such application
23 adversely to the applicant. The applicant shall be entitled to a
24 decision in accordance with the provisions of the governing
25 ordinances or resolutions as they stood at the time the
26 application was duly filed to the extent such ordinances or
27 resolutions are in accordance with this section. No municipality
28 or municipal authority shall refuse to accept any application
29 pending enactment or amendment of any ordinances or resolutions
30 pursuant to this section.
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1 (x) No municipality or municipal authority shall have the
2 power to require the construction or dedication of any
3 improvements of any nature whatsoever or impose any assessment,
4 fee, exaction or contribution in lieu thereof, or any tapping,
5 connection or similar fee except as may be provided specifically
6 herein.
7 Section 3. The following acts and parts of acts are repealed
8 insofar as they are inconsistent with this act:
9 (1) The act of June 23, 1931 (P.L.932, No.317), known as
10 The Third Class City Code.
11 (2) The act of June 24, 1931 (P.L.1206, No.331), known
12 as The First Class Township Code.
13 (3) The act of May 1, 1933 (P.L.103, No.69), known as
14 The Second Class Township Code.
15 (4) The act of May 2, 1945 (P.L.382, No.164), known as
16 the Municipality Authorities Act of 1945.
17 (5) The act of June 1, 1945 (P.L.1242, No.428), known as
18 the State Highway Law.
19 (6) The act of August 9, 1955 (P.L.323, No.130), known
20 as The County Code.
21 (7) The act of February 1, 1966 (1965 P.L.1656, No.581),
22 known as The Borough Code.
23 Section 4. This act shall take effect immediately.
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