Borough of Franklin, NJ Fees and Deposits

[1]

Fees for applications or for the rendering of any services by the Planning Board or the Zoning Board of Adjustment or any member of their administrative staffs shall be as provided in the Fee Ordinance of Franklin Borough.

Components of fee. Each applicant shall pay to the Borough of Franklin a technical review fee in connection with each application for development, each application for amendment to or extension of any development approval, any request for a zone change or recommendation of a zone change, any request for amendment of the Master Plan and/or any request for concept review of a development proposal. All such requests are included in Subsection B within the term "application." The technical review fee shall be equal to the sum of the following two components:

(1)

The dollar amount of all charges by outside professionals (as defined herein) for professional services rendered to the Borough and/or the reviewing board in connection with the application, plus all actual out-of-pocket disbursements incurred in regard to such services. All charges for services by each outside professional shall be billed at the same rate as all other work of the same nature performed by such professional for the Borough when fees are not reimbursed or otherwise imposed on an applicant. Charges for professional services of outside professionals shall be based upon a schedule of fees established by resolution of the reviewing board, in the case of professionals retained by the Board, and by resolution of the Borough Council, in the case of professionals retained by the Borough. Such schedules shall be subject to revision from time to time in the discretion of the Borough Council; and

(2)

The dollar amount of the hourly base salary of each in-house professional (as defined herein) who has rendered professional services to the Borough and/or the reviewing board in connection with the application, multiplied by both the total number of hours of professional services spent by each in-house professional in connection with the application and 200%. The hourly base salary of each in-house professional shall be established by ordinance annually.

Definitions. As used in this article, the following terms shall have the meanings indicated:

IN-HOUSE PROFESSIONAL

Engineers, planners, attorneys and other professionals whose salary, staff support and overhead are provided by the Borough of Franklin.

OUTSIDE PROFESSIONALS

Engineers, planners, attorneys and other professionals whose salary, staff support and overhead are not provided by the Borough of Franklin. Outside professionals shall include, without limitation, consultants who are not normally utilized by the Borough or the reviewing board when an application presents issues which are beyond the scope of the expertise of the professionals who normally serve the reviewing board or the Borough.

PROFESSIONAL SERVICES

Time spent by a professional engineer, professional planner, attorney, traffic expert or other professional in connection with review of an application and/or review and preparation of documents in regard to such application. In appropriate cases, such services shall include, without limitation, review of plans, reports, relevant ordinance provisions, statutory law, case law and prior approvals for the same parcel; site inspections; and preparation of resolutions, developer's agreements and other documents.

Limitations on scope of charges for professional services. All charges for professional services shall be reasonable and necessary given the status and progress of the application. Such charges shall be made only in connection with an application which is presently pending before a reviewing board, review of an applicant's compliance with conditions of approval and/or review of an applicant's request for modification or amendment of an application or approval.

(1)

A professional shall not review items which are subject to approval by a state governmental agency and which are not under municipal jurisdiction except to the extent that consultation with a state agency is necessary due to the effect of a state approval on the applicant's application.

(2)

If the Borough or the reviewing board shall retain a different professional in place of the professional originally responsible for review of an application, the Borough or the reviewing board, as the case may be, shall be responsible for all time and expenses of the new professional to become familiar with the application. Neither the Borough nor the reviewing board shall charge the applicant or the applicant's technical review fee deposit for such services.

(3)

Neither the Borough nor the reviewing board shall bill an applicant, or charge the applicant's technical review fee deposit, for any municipal clerical or administrative functions, overhead expenses, meeting room charges or other municipal costs and expenses, except as provided for in this subsection, nor shall any professional add any such charges to his or her bill.

Payment of escrow fee deposits. At the time of filing any application with the Planning Board or Board of Adjustment, each applicant shall pay a technical review fee deposit, or deposits, in accordance with Chapter 119, Fees. The applicant shall pay the deposit required for each approval which is requested.

All review and inspection escrow account deposits shall be placed into an escrow account, which shall be maintained by the Chief Financial Officer of the Borough of Franklin. The Chief Financial Officer shall make all payments from the escrow account.

[Added 7-16-2019 by Ord. No. 13-2019[2]]

(1)

In addition to the initial application fees or charges as set forth in Chapter 119, Fees, the Borough shall require escrow account deposits in accordance with the provisions of the schedule set forth in Chapter 119. The Chief Financial Officer shall make all payments to professionals for services rendered to the Borough, the Board or approving authority for review of applications for development, review and preparation of documents, inspection of improvements or other purposes under the provisions of N.J.S.A. 40:55D-1 et seq. The application review and inspection charges shall include, but not be limited to, professional charges for review of applications, attendance at meetings, preparation of documents, rendering advice or opinions, or other services reasonably required to provide professional guidance, review and preparation of documents and inspection of developments under construction and for review by outside consultants when an application is of a nature beyond the scope of the expertise of the professionals normally utilized by the Borough. The only costs to be added to such charges shall be actual, out-of-pocket expenses of such professionals or consultants, including normal and typical expenses incurred in processing applications and inspecting improvements. No applicant shall be charged for any Borough, clerical or administrative functions, overhead expenses, meeting room charges or any of the Borough costs and expenses except as provided for specifically by statute or ordinance, nor shall a Borough professional add any such charge to his bill.

(2)

The Borough shall be reimbursed by the applicant for professional fees for the review of applications, both as to completeness and as to content; for the review and preparation of documents such as, but not limited to, drafting resolutions, developer's agreements, and necessary correspondence with the applicant or applicant's professionals.

(3)

The escrow account deposits and fees in Chapter 119 are promulgated on the assumption of the applicant submitting completed applications and plans in conformance with the applicable ordinances.

(4)

The schedule of escrow account deposits and fees in Chapter 119 are an estimated initial cost to the Borough related to the land development review process. Nothing contained herein shall prohibit the applicable board from requiring the applicant to reimburse the Borough for all additional reasonable professional review costs of the application. Any application lacking a sufficient escrow account deposit to permit the Board and its professionals to proceed may be continued without action (in which event all deadlines are tolled until sufficient funds are paid) or may be dismissed without prejudice.

(5)

Whenever an escrow account deposit shall be made by an applicant for professional services to review applications for development, inspection fees to satisfy the requirement for any performance guaranty or the requirement for any maintenance guaranty pursuant to this chapter, such money, until repaid, or applied for the purposes for which it was deposited, shall continue to be the property of the applicant and shall be held in trust by the Borough except as otherwise provided for by this section.

(6)

The Borough shall place all escrow account deposits in a banking institution or savings and loan association located in the State of New Jersey and insured by an agency of the federal government or in any other fund or depository approved for such deposits by the State of New Jersey.

(7)

The Borough shall notify the applicant, in writing, of the name and address of the institution or depository in which such deposit is made and the amount of the deposit. The Borough shall not be required to refund an amount of interest paid on a deposit which does not exceed $100 for the year. If the amount of interest exceeds $100 for any year, that entire amount shall belong to the applicant and shall be refunded to the applicant by the Borough at the time the deposit is repaid or applied to the purposes for which it was deposited, as the case may be. Notwithstanding anything to the contrary above, the Borough may retain for administrative expenses a sum equal to 33 1/3% of the annual interest earned by such deposit. The amount so retained shall be in lieu of all other administrative and custodial expenses charged by the Borough in connection with the deposit.

[2]

Editor's Note: This ordinance also repealed former Subsection E, Custody of deposits; procedure for payments against deposits; submission of vouchers; monthly statements; Subsection F, Replenishing of deposit; and Subsection G, Final accounting; return of unused balance of deposit.

Vouchers; payments.

[Added 7-16-2019 by Ord. No. 13-2019]

(1)

All professional fees charged to an applicant's escrow account shall be pursuant to vouchers from the professionals performing services in connection with the application. All vouchers shall identify the professional performing the services, the dates when services were performed, the hours spent in one-quarter-hour increments, the hourly rate and the expenses incurred.

(2)

All outside professionals shall submit vouchers to the Chief Financial Officer on a monthly basis. A copy of the voucher shall be sent to the applicant simultaneously. All in-house professionals shall submit to the Chief Financial Officer on a monthly basis a statement containing the same information as the voucher of an outside professional. A copy of the statement shall be sent to the applicant simultaneously.

(3)

The Chief Financial Officer shall prepare and send to the applicant on a monthly basis a statement providing an accounting of the applicant's escrow account deposit. The accounting shall include all deposits made, disbursements made and cumulative deposit balance. Notwithstanding the foregoing, if monthly charges to an applicant's deposit are $1,000 or less, such statement may be provided by the Chief Financial Officer on a quarterly basis.

Replenishing of escrow account deposit. If an escrow account deposit shall be insufficient to enable the Borough, the reviewing board or its professionals to perform anticipated reviews, the Board Secretary shall notify the applicant (this notice is referred to herein as an "insufficiency notice") of both the insufficient deposit balance and the amount of additional funds required, to be determined in consultation with the professionals.

[Added 7-16-2019 by Ord. No. 13-2019]

(1)

When the escrow account falls below the 25% level of the original amount deposited, the Board Secretary shall notify the applicant, and the applicant shall immediately replenish the account by depositing 100% of the original review deposit into the escrow account. No approving authority or its professional staff shall take any further action on the application, nor shall any plats be signed or construction commenced or completed until adequate additional fees have been deposited with the Borough. Any application lacking sufficient funds to permit the Board to proceed may be dismissed without prejudice. When there exists any deficiency in the applicant's escrow account deposit, failure to pay the required supplement within 10 business days shall toll or stop the time in which the Board must act on the application.

(2)

The applicant must maintain the escrow account deposit for any further services by the Board professionals after any approvals by the Board. If the applicant fails to maintain the escrow account deposit at the required amount, the Board shall issue a letter of "hold approvals and inspection order" to the Construction Department and Borough Department of Public Works. After the applicant's Board approvals, the Board professionals shall submit a good faith estimate as to the cost the Borough is likely to incur in additional professional services. In the event that an applicant's escrow account deposit shall be depleted prior to the completion of professional estimated work, the Board Secretary shall immediately notify the applicant, in writing, that there is or will imminently be a deficiency in the applicant's escrow account. The applicant shall forthwith deposit the amount of the additional escrow estimated by the professional's statement.

(3)

The applicant must maintain the application escrow account deposit after any approvals/denials by the Board. Should any fees for applications for development, review fees, inspection fees or fees of any nature connected with an application be due and unpaid by the applicant for development and/or owner of the subject property for a period of 15 days after written notice of the amount due was mailed to the applicant/owner, the Board Secretary shall notify the Borough Clerk, Mayor or Administrator or other officer of the Borough of Franklin, who may execute a written statement of lien showing the amount due to the Borough and may record the same in the Sussex County Clerk's office as a lien on the subject property. The lien shall include interest at the rate of 12% per annum, recording fees and reasonable attorney fees.

Final accounting; return of unused balance of escrow account deposit. The applicant will receive a refund of any escrow account balance remaining after all vouchers pertaining to the application have been submitted. A written request must be submitted to the Board Secretary stating that the application process is complete and requesting that all remaining escrow may be returned. This process can take up to 90 business days from the time of a certificate of occupancy/approval by the Construction Department since the refund must be approved by the Board, and then the Borough Council. After the Board has granted final approval and signed the approved subdivision plat or site plan, or otherwise taken final action on the application, the applicant shall provide written notice of same, by certified mail, return receipt requested, or by personal delivery, to the Chief Financial Officer, the Board Secretary, the reviewing board and all professionals who have rendered services in connection with the application. The Chief Financial Officer shall render to the applicant a final accounting within 45 days after receipt of all final bills and/or statements. The Chief Financial Officer shall return to the applicant with the final accounting any unused balance of the escrow account deposit, including any interest earned thereon.

[Added 7-16-2019 by Ord. No. 13-2019]

Appeals; objections. The governing body, or its designee, shall within a reasonable time period attempt to mediate any disputed charges. If the matter is not resolved to the satisfaction of the applicant, the applicant may appeal to the county construction board of appeals any charge to an escrow account deposit by any municipal professional or consultant. An applicant shall file an appeal within 45 days from receipt of a professional's voucher, except that if the professional has not supplied the applicant a voucher, then the applicant shall file his appeal within 60 days from receipt of the accounting statement. The applicant or his authorized agent shall simultaneously send a copy of the appeal to the municipality, approving authority, and any professional whose charge is the subject of the appeal. The county construction board of appeals shall hear the appeal, render a decision thereon, and file its decision with a statement of the reasons therefor with the municipality or approving authority. During the pendency of any appeal, the municipality or approving authority shall continue to process, hear, and decide the application for development, and to inspect the development in the normal course, and shall not withhold, delay, or deny reviews, inspections, signing of subdivision plats or site plans, the reduction or the release of performance or maintenance guarantees, the issuance of construction permits or certificates of occupancy, or any other approval or permit because an appeal has been filed or is pending under this section.

[Added 7-16-2019 by Ord. No. 13-2019]

[1]

Editor's Note: The title of this section, which was formerly Technical review fees, was amended 7-16-2019 by Ord. No. 13-2019.