A.
Prior to signing of a final plat, issuance of a development permit and/or the commencing of any clearing, grading or installation of improvements, the developer shall have filed with the Township a performance guaranty.
(1)
The guaranty shall be sufficient in amount to equal the total cost to the Township as estimated by the Township Engineer of constructing those on-site, off-site and off-tract improvements necessary to protect adjacent property and the public interest in the event that development of the subdivision or site were not completed. Such improvements shall include but are not limited to grading; surveyor's monuments; drainage facilities necessary to protect off-tract areas from flooding; erosion and sedimentation control facilities; required landscaping, buffers, screening and fencing; all improvements within public rights-of-way and easements such as streets, curbs, gutters, culverts, storm sewers, sanitary sewers, water mains, sidewalks, streetlighting, shade trees and others as may be required. The applicant shall provide preliminary estimated types and quantities of improvements to be review and verified by the Township Engineer.
(2)
Such guaranty shall assure the installation of such improvements on or before an agreed date, guarantee the completion of all improvements without damage to or interference with adjacent properties or public facilities and hold the Township Committee and the municipal agency and their employees and agents harmless with respect to any acts of the developer, its agents, successors or assigns.
(3)
The total estimated cost to the Township of constructing all improvements shall be based upon the estimated contract construction costs, which would prevail upon expiration of the guaranty period, and shall also include appropriate allowances for contract-related costs such as engineering, legal, financial, and other usual costs, which shall be estimated to be 20% of the estimated contract construction costs. (Performance guaranty equals 120% of cost of improvement installation.)
(4)
Such performance guaranty may be in the form of cash, certified check, negotiable securities, a performance bond issued by a bonding company or surety company approved by the Township Attorney, or any other type of surety acceptable to and approved by the Township Committee and in form acceptable to the Township Attorney, provided that at least 10% of the performance guaranty shall be in the form of cash or certified check drawn on an insured banking institution in the State of New Jersey; provided, however, that all rights to said 10% portion, including the right to interest with dividends, be assigned to the Township in a form of assignment acceptable to the Township Attorney for a period of the bond and that the principal amount without interest be returned to the developer upon completion of the bonded improvements, or, in the event of default, any interest and principal shall be used by and for the benefit of the Township in the completion of said improvements.
B.
If, at the time the performance guaranty is filed with the Township, the developer has not also filed with the Township proof that any other necessary performance guaranties have been filed and accepted by governmental bodies, authorities, public utility companies, and private utility companies other than the Township which have jurisdiction over improvements in the site or subdivision, the amount of the performance guaranty shall be increased to reflect the cost of such improvements.
C.
All performance guaranties shall run to and be in favor of the Township of Weymouth in the County of Atlantic.
D.
The performance guaranty shall be approved by the Township Attorney as to form, sufficiency and execution and shall be subject to the following conditions:
(1)
Such performance guaranty shall run for a period to be fixed by the Township Committee, but in no case for a term longer than the period of final approval (normally two years) set by N.J.S.A. 40:55D-1 et seq., and/or § 155-70G of this chapter or for the installation of all or any portion of the improvements, whichever is shorter.
(2)
The time allowed for installation of improvements for which the performance guaranty has been provided may be extended by resolution of the Township Committee, provided that, if required, the period of final approval has been extended by the municipal agency in accordance with N.J.S.A. 40:55D-1 et seq., and/or § 155-70G of this chapter, and provided further that:
(a)
Such extension shall not exceed one year;
(b)
There shall not be more than three such extensions; and
(c)
As a condition or as part of any such extension, the amount of any performance guaranty shall be increased or reduced, as the case may be, to an amount not to exceed 120% of the cost of the installation of all uncompleted improvements as determined by the Township Committee as of the time of the passage of the resolution.
(3)
If the required improvements are not completed or corrected in accordance with the performance guaranty, the obligor and surety, if any, shall be liable thereon to the Township for the reasonable cost of the improvements not completed or corrected, and the Township may, either prior to or after the receipt of the proceeds thereof, complete such improvements.
E.
If, during the period of the performance guaranty, the developer fails to prosecute the work of completing the improvements so as not to create hazards to life, health, property or public safety, the Township may, after five days' notice, perform, or cause to be performed, any necessary corrective work and deduct the cost thereof from the ten-percent cash or certified check portion of the guaranty. Upon notice of any such deduction, the developer shall, within 10 days, restore the full ten-percent cash balance or his or her performance guaranty will be held to be void and the Township may take action as if final plat approval had not been obtained.
F.
Upon completion and/or substantial completion of all required improvements as defined Subsection A above [except the final application of bituminous concrete (wearing surface), street shade trees, concrete monuments and iron pins], and the connection of applicable improvements to the public system, the obligor may notify the Township Committee, in writing, by certified mail addressed in care of the Township Clerk of the completion or substantial completion of improvements and shall send a copy thereof to the Township Engineer. The developer's or obligor's design professional shall prepare and certify unto the Township a detailed list of completed and/or substantially completed improvements having off-site, on-tract and/or off-tract effect plus on-site improvements. The detailed list shall be consistent with Schedule "A" of the performance bond estimate originally prepared by the Township Engineer for the referenced project. Thereupon the Township Engineer shall inspect all improvements of which such notice has been given and shall file a detailed report, in writing, with the Township Committee, indicating either approval, partial approval or rejection of such improvements with a statement of reasons for any rejection. The cost of the improvements as approved or rejected shall be set forth.
G.
The Township Committee shall either approve, partially approve, or reject the improvements, on the basis of the report of the Township Engineer and shall notify the obligor in writing, by certified mail, of the contents of said report and the action of said approving authority with relation thereto, not later than 65 days after receipt of the notice from the obligor of the completion of the improvements. Where partial approval is granted, the obligor shall be released from all liability pursuant to its performance guaranty, except for that portion adequately sufficient to secure provisions of the improvements not yet approved; provided that 30% of the amount of the performance guaranty posted may be retained to ensure completion of all improvements. Failure of the Township Committee to send or provide such notification to the obligor within 65 days shall be deemed to constitute approval of the improvements, and the obligor and surety, if any, shall be released from all liability pursuant to such performance guaranty for such improvements.
H.
If any portion of the required improvements are rejected, the Township Committee may require the obligor to complete such improvements and, upon completion, the same procedure of notification as set forth in this section shall be followed. Performance guaranty for the remaining improvements not yet approved (30% minimum) shall be approved by the Township Attorney as to form, sufficiency and execution and shall run for such additional period as it shall be deemed sufficient or until acceptance of public improvements by the Township. Should the Township Committee approve or partially approve the reduction request, the ten-percent cash or certified portion of the performance guaranty provided by the obligor shall remain on deposit with the Township until such time all improvements are complete and accepted by the municipality. The performance guaranty for the remaining improvements not yet approved (30% minimum) plus the ten-percent cash or certified portion of the performance guaranty provided by the obligor shall be deemed adequate to cover that partial reduction granted for which the obligor is released from liability pursuant to the performance guaranty.
I.
Nothing herein, however, shall be construed to limit the right of the obligor to contest by legal proceedings any determination of the Township Committee or the Township Engineer.
J.
The obligor shall reimburse the Township for all reasonable inspection fees paid to the Township Engineer for the foregoing inspection of improvements, provided that the municipality may require of the developer, a deposit for all or a portion of the reasonable anticipated fees to be paid to the Township Engineer for such inspection, and provided further, that such reasonable anticipated fees are hereby determined and set forth in § 155-73 of this chapter.
[Amended 6-19-1996 by Ord. No. 344-96]
K.
In the event that final approval is by stages or sections of development pursuant to the N.J.S.A. 40:55D-38, Subsection a, the provisions of this section shall be applied by such stage or section.