[Amended 9-11-2000 by Ord. No. 20-00; 3-27-2018 by Ord. No. 05-18; 5-27-2025 by Ord. No. 15-25]
A.
Performance guarantee.
(1)
Requirements; form; rights.
(a)
Improvements; cost.
[1]
Prior to the filing of a final plat, recording of minor subdivision deeds, or as a condition of final site plan approval, or as a condition to the issuance of a zoning permit, the developer shall have filed with the Township Engineer a performance guarantee sufficient in amount to equal the total cost to the Township, as estimated by the Township Engineer, for installation of those on-site improvements required by an approval or developer's agreement, ordinance or regulations to be dedicated to a public entity that have not yet been installed, including the following as shown on the approved plans or plat:
[a]
Streets.
[b]
Pavement.
[c]
Gutters.
[d]
Curbs.
[e]
Sidewalks.
[f]
Street lighting.
[g]
Street trees.
[h]
Surveyor's monuments.
[i]
Water mains.
[j]
Sanitary sewers.
[k]
Community septic systems.
[l]
Drainage structures.
[m]
Public improvements of open space.
[n]
Any grading necessitated by the preceding improvements.
[o]
Privately owned perimeter buffer landscaping; provided, however that a developer may choose to post a separate performance guarantee for the privately owned perimeter buffer landscaping.
(b)
Such guarantee 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 Council and Township Planning Board or Zoning Board of Adjustment and their employees and agents harmless with respect to any acts of the developer, its agents, successors or assigns.
(c)
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 guarantee 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.
(d)
Such performance guarantee 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 Council or any other type of surety acceptable to and approved by the Township Attorney and Township Council, provided that at least 10% of the performance guarantee shall be in cash or certified check. The balance of said performance guarantee shall be in the form of cash, certified check, certificate of deposit, an irrevocable letter of credit (said letter to be issued by a financial institution whose deposits are insured by the Federal Savings and Loan Insurance Corporation or Federal Deposit Insurance Corporation) or a bond issued by a surety or bonding company authorized to do business in New Jersey; provided, however, that all rights, including the right to interest with dividends, shall be assigned to the Township of Jackson in a form of assignment acceptable to the Township Attorney for the period of the bond and that the principal amount of the passbook or certificate of deposit, together with interest, shall be returned to the developer upon completion of the bonded improvements, or, in the event of default, both interest and principal shall be used by and for the benefit of the Township in the completion of said improvements.
(e)
The form of the performance guarantee shall be subject to the approval of the Township Attorney.
(f)
Subject to N.J.S.A. 40:55D-1 et seq., as amended and supplemented, all rights in the performance guarantee, including the right to any interest earned on any deposits, shall belong to the Township of Jackson.
(g)
Notwithstanding the requirement of Subsection A(1) above, when a letter of credit which has been previously accepted pursuant to Subsection A(1) as a performance guarantee is about to expire, it may be renewed administratively by the Township Attorney, provided that all pertinent requirements are met by the applicant.
(h)
In the event of default, the principal and any interest shall be used for the benefit of the Township in the completion of the improvements.
(2)
All guaranties authorized by this chapter shall run to and be in favor of the Township of Jackson in the County of Ocean.
(3)
Such performance guarantee shall run for a period to be fixed by the Township Council, but in no case for a term of more than two years. However, with the consent of the owner and the surety, if there is one, the Township Council may, by resolution, extend the term of such performance guarantee for an additional period not to exceed one year. The amount of the performance guarantee may be revised by the Township Council from time to time to reflect work progress, increasing costs and changing conditions in regard to the uncompleted or unacceptable portions of the required improvements. If the required improvements have not been installed in accordance with the performance guarantee, the obligor and surety shall be liable thereon, at the option of the municipality, for:
(4)
Municipal Engineer list and report.
(a)
Upon substantial completion of all required street improvements (except for the top course) and appurtenant utility improvements, and the connection of same to the public system, the obligor may request of the governing body in writing, by certified mail addressed in care of the Municipal Clerk, that the Municipal Engineer prepare, in accordance with the itemized cost estimate prepared by the Municipal Engineer and appended to the performance guarantee pursuant to Subsection A of this section, a list of all uncompleted or unsatisfactorily completed bonded improvements. If such a request is made, the obligor shall send a copy of the request to the Municipal Engineer. The request shall indicate which bonded improvements have been completed and which bonded improvements remain uncompleted in the judgment of the obligor. Thereupon, the Municipal Engineer shall inspect all improvements covered by obligor's request and shall file a detailed list and report, in writing, with the governing body, and shall simultaneously send a copy thereof to the obligor not later than 45 days after receipt of the obligor's request.
(b)
The list prepared by the Municipal Engineer shall state, in detail, with respect to each bonded improvement determined to be incomplete or unsatisfactory, the nature and extent of the incompleteness of each incomplete improvement or the nature and extent of, and remedy for, the unsatisfactory state of each completed improvement determined to be unsatisfactory. The report prepared by the Municipal Engineer shall identify each improvement determined to be complete and satisfactory, together with a recommendation as to the amount of reduction to be made in the performance guarantee relating to the completed and satisfactory improvement, in accordance with the itemized cost estimate prepared by the Municipal Engineer and appended to the performance guarantee pursuant to Subsection A of this section.
(5)
Approval or rejection of governing body.
(a)
The governing body, by resolution, shall either approve the bonded improvements determined to be complete and satisfactory by the Municipal Engineer or reject any or all of these bonded improvements upon the establishment in the resolution of cause for rejection, and shall approve and authorize the amount of reduction to be made in the performance guarantee relating to the improvements accepted in accordance with the itemized cost estimate prepared by the Municipal Engineer and appended to the performance guarantee pursuant to Subsection A of this section. This resolution shall be adopted not later than 45 days after receipt of the list and report prepared by the Municipal Engineer. Upon adoption of the resolution by the governing body, the obligor shall be released from all liability pursuant to its performance guarantee, with respect to those approved bonded improvements, except for that portion adequately sufficient to secure completion or correction of the improvements not yet approved, provided that 30% of the amount of the total performance guarantee and safety and stabilization guarantee posted may be retained to ensure completion and acceptability of all improvements. The safety and stabilization guarantee shall be reduced by the same percentage as the performance guarantee is being reduced at the time of each performance guarantee reduction. For the purpose of releasing the obligor from liability pursuant to its performance guarantee, the amount of the performance guarantee attributable to each approved bonded improvement shall be reduced by the total amount for each such improvement in accordance with the itemized cost estimate prepared by the Municipal Engineer and appended to the performance guarantee pursuant to Subsection A of this section, including any contingency factor applied to the cost of installation. If the sum of the approved bonded improvements would exceed 70% of the total amount of the performance guarantee, then the municipality may retain 30% of the amount of the total performance guarantee and safety and stabilization guarantee to ensure completion and acceptability of bonded improvements as provided above; except that any amount of the performance guarantee attributable to bonded improvements for which a temporary certificate of occupancy guarantee has been posted shall be released from the performance guarantee even if such release would reduce the amount held by the municipality below 30%.
(b)
If the Municipal Engineer fails to send or provide the list and report as requested by the obligor pursuant to Subsection A(4) of this section within 45 days from receipt of the request, the obligor may apply to the court in a summary manner for an order compelling the Municipal Engineer to provide the list and report within a stated time, and the cost of applying to the court, including reasonable attorney's fees, may be awarded to the prevailing party. If the governing body fails to approve or reject the improvements determined by the Municipal Engineer to be complete and satisfactory or reduce the performance guarantee for the complete and satisfactory improvements within 45 days from the receipt of the Municipal Engineer's list and report, the obligor may apply to the court in a summary manner for an order compelling, within a stated time, approval of the complete and satisfactory improvements and approval of a reduction in the performance guarantee for the approvable complete and satisfactory improvements in accordance with the itemized cost estimate prepared by the Municipal Engineer and appended to the performance guarantee pursuant to Subsection A of this section; and the cost of applying to the court, including reasonable attorney's fees, may be awarded to the prevailing party.
(c)
In the event that the obligor has made a cash deposit with the municipality or approving authority as part of the performance guarantee, then any partial reduction granted in the performance guarantee pursuant to this subsection shall be applied to the cash deposit in the same proportion as the original cash deposit bears to the full amount of the performance guarantee.
(6)
If any portion of the required improvements are rejected, the Township Council 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.
(7)
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.
B.
Safety and stabilization guarantee.
(1)
Safety and stabilization guarantee required.
(a)
The developer shall furnish a safety and stabilization guarantee in favor of the Township of Jackson to ensure that the Township has an adequate guarantee to return the property that has been disturbed to a safe and stable condition or otherwise implement measures to protect the public from access to an unsafe or unstable condition.
(b)
The Township shall be permitted to access the guarantee when:
[1]
Site disturbance has commenced and, thereafter, all work on the development has ceased for a period of at least 60 consecutive days following such commencement for reasons other than force majeure; and
[2]
Work has not recommenced within 30 days following the provision of written notice by the municipality to the developer of the municipality's intent to claim payment under the guarantee.
(c)
At the developer's option, the safety and stabilization guarantee may be included as a line item in the performance guarantee rather than in the form of a separate guarantee.
(d)
The amount of the safety and stabilization guarantee shall be calculated pursuant to N.J.S.A. 40:55D-53.4 as follows:
(e)
The safety and stabilization guarantee shall be released upon the determination of the Township Engineer that the development of the project site has reached a point that the improvements installed are adequate to avoid any potential threat to public safety.
C.
Temporary certificate of occupancy guarantee.
(1)
In the event that the developer shall seek a temporary certificate of occupancy for a development, unit, lot, building, or phase of development, as a condition of the issuance thereof, the developer shall furnish a separate guarantee, referred to herein as a "temporary certificate of occupancy guarantee," in favor of the Township of Jackson in an amount equal to 120% of the cost of installation of only those improvements or items which remain to be completed or installed under the terms of the temporary certificate of occupancy and which are required to be installed or completed as a condition precedent to the issuance of the permanent certificate of occupancy for the development, unit, lot, building or phase of development and which are not covered by an existing performance guarantee.
(2)
Upon posting of a temporary certificate of occupancy guarantee, all sums remaining under a performance guarantee which relate to the development, unit, lot, building, or phase of development for which the temporary certificate of occupancy is sought shall be released.
(3)
The scope and amount of the temporary certificate of occupancy guarantee shall be determined by the Township Engineer.
(4)
The temporary certificate of occupancy guarantee shall be released by the Township Engineer upon the issuance of a permanent certificate of occupancy with regard to the development, unit, lot, building, or phase as to which the temporary certificate of occupancy relates.