Before granting final approval of subdivision plats or site
plans, the Planning Board or Zoning Board of Adjustment may require,
for the purpose of assuring the installation and maintenance of on-tract
improvements:
A. The furnishing of a performance guaranty in favor of the municipality
in an amount not to exceed 120% of the cost of installation for improvements
it may deem necessary or appropriate, including: streets, grading,
pavement, water mains, stormwater drains, sanitary sewers, catch basins,
dry wells, cleanouts, gutters, curbs, sidewalks, streetlighting, shade
trees and landscaping, surveyor's monuments and fire hydrants,
as shown on the final map and required by the Map Filing Law, N.J.S.A.
46:26B-1 et seq., water mains, culverts, storm sewers, sanitary sewers
or other means of sewage disposal, drainage structures, erosion control
and sedimentation control devices and public improvements of open
space. Performance guaranties required by this chapter shall run for
the period specified by the Planning Board or Zoning Board of Adjustment,
but in no case for a term of more than three years.
B. Provision for a maintenance guaranty to be posted with the Municipal
Council 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 automatically will own the utilities to be installed
or the improvements are covered by a performance or maintenance guaranty
to another governmental agency, no performance or maintenance guaranty,
as the case may be, shall be required by the municipality for such
utilities or improvements.
The amount of any performance guaranty may be reduced by the
Municipal Council, by resolution, when portions of the improvements
have been certified by the Municipal Engineer to have been completed.
The time allowed for installation of the improvements for which the
performance guaranty has been provided may be extended by said body
by resolution.
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 the improvements not completed or corrected and the municipality
may, either prior to or after the receipt of the proceeds thereof,
complete such improvements.
When all of the required improvements have been completed, the
obligor shall notify the Municipal Council, in writing, by certified
mail, addressed in care of the Municipal Clerk, of the completion
of said improvements and shall send a copy thereof to the Municipal
Engineer. Thereupon the Municipal Engineer shall inspect all of the
improvements and shall file a detailed report, in writing, with the
Municipal Council, indicating either approval, partial approval or
rejection of the improvements with a statement of reasons for any
rejection. If partial approval is indicated, the cost of the improvements
rejected shall be set forth.
The Municipal Council shall either approve, partially approve
or reject the improvements on the basis of the report of the Municipal
Engineer and shall notify the obligor, in writing, by certified mail,
of the contents of said report and the action of said Municipal Council
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 approved. Failure of the Municipal Council 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.
If any portion of the required improvements are rejected, the
Municipal Council may require the obligor or surety, if any, to complete
such improvements, and upon completion the same procedure of notification
as set forth this article shall be followed.
The obligor shall reimburse the municipality for all reasonable
inspection fees paid to the Municipal Engineer for the aforegoing
inspection of the improvements.
Any guaranties required pursuant to this article shall be in
addition to any other fees required by ordinance.