[Amended 2-18-1980 by Ord. No. 80-2]
A. The performance guaranties shall be furnished in favor of the municipality in an amount equal to 120% of the cost of the installation of improvements it may deem necessary or appropriate as specified in §
332-22 of this chapter.
B. Upon substantial completion of all required appurtenant
utility improvements and the connection of the same to the public
system, the obligor may notify the governing body, in writing, by
certified mail addressed in care of the Borough Clerk, of the completion
of substantial completion of improvements and shall send a copy thereof
to the Borough Engineer. Thereupon, the Borough Engineer shall inspect
all improvements of which such notice has been given and shall file
a detailed report, in writing, with the governing body, 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.
C. The governing body shall either approve, partially
approve or reject the improvements on the basis of the report of the
Borough Engineer and shall notify the obligor, in writing, by certified
mail, of the contents of said report and the action of the 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 provision of the improvements
not yet improved, provided that 30% of the amount of the performance
guaranty posted may be retained to insure completion of all improvements.
D. Failure of the governing body 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.
E. 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 municipality for
the reasonable cost of improvements not completed or corrected, and
the municipality may complete such improvements prior to or after
receipt of the proceeds of the performance guaranty.
F. If any portion of the required improvements are rejected,
the approving authority 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.
G. Nothing herein, however, shall be construed to limit
the right of the obligor to contest by legal proceedings any determination
of the Borough Engineer or the governing body.
H. The obligor shall reimburse the municipality for all
reasonable inspection fees paid to the Borough Engineer for the foregoing
inspections 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 Borough Engineer for such inspections.
I. In the event that final approval is by stages or sections
of development pursuant to N.J.S.A. 40:55D-38, the provisions of this
section shall be applied by stage or section.
J. The performance guaranties shall be approved by the
governing body as to form, sufficiency and execution, and such performance
guaranties shall run for a period to be fixed by the approving authority.
However, with the consent of the obligor and surety, if there is one,
the governing body may, by resolution, extend the term of such performance
guaranties for an additional period not to exceed one year.
Prior to the acceptance of any on-site improvements,
a maintenance guaranty shall be furnished in favor of the municipality
for a period not to exceed two years after final acceptance of the
improvement, in an amount not to exceed 15% of the cost of the improvement.
In the event that other governmental agencies
or public utilities will own the utilities or improvements to be installed
in the subdivision and are covered by a performance or maintenance
guaranty to another governmental agency or public utility, no performance
or maintenance guaranty, as the case may be, shall be required by
the municipality for such utilities or improvements.