[Added 10-16-2018 by Ord.
No. 2018-07]
For the purpose of assuring the installation and maintenance
of bondable land development improvements, as a condition of all final
site plan, subdivision, and zoning permit approvals, the Board or
Zoning Officer shall require, as appropriate, and the Borough Council
shall accept, in accordance with the standards adopted hereinafter:
A. The furnishing of a performance guarantee in favor of the Borough
in an amount not to exceed 120% of the cost of improvements required
by an approval or developer's agreement, ordinance, or regulation
to be dedicated to a public entity, and that have not yet been installed
including: streets, curbs, grading, pavement, gutters, sidewalks,
streetlighting, street trees, surveyors' monuments, water mains,
sanitary sewers, community septic system, drainage structures, public
improvements of open space and any grading necessitated by the preceding
improvements and privately owned perimeter buffer landscaping. The
performance guarantee shall also include, within an approved phase
or section of a development, privately owned perimeter buffer landscaping,
as required by local ordinance or imposed as a condition of approval.
B. The cost of the performance guarantee shall be determined by the
Borough Engineer according to the method of calculation set forth
in N.J.S.A. 40:55D-53.4. At the developer's option, a separate
performance guarantee may be posted for the privately owned perimeter
buffer landscaping. The Borough Engineer shall prepare an itemized
cost estimate of the improvements covered by the performance guarantee,
which itemized cost estimate shall be appended to each performance
guarantee posted by the obligor.
C. Performance guarantees shall be submitted in the following form:
(1) A minimum of 10% of the performance guarantee must be posted in cash.
(2) The remaining 90% of the performance guarantee amount may be posted
in cash, certified check, irrevocable standby letter of credit or
surety bond issued by an insurance company licensed to do business
in the State of New Jersey and acceptable to the Borough Attorney
in the favor of the Borough.
(3) If the applicant elects to post an irrevocable standby letter of
credit, it must be written in accordance with the standardized form
adopted by regulation by the New Jersey Department of Community Affairs
pursuant to Section 1 of P.L.1999, c.68 (N.J.S.A. 40:55D-53a) as complying
with the provisions of Section 41 of P.L.1975, c.291 (N.J.S.A. 40:55D-53).
(4) All guarantees shall provide for construction of the required improvements
within two years of the date of their posting or such other time as
determined by the Borough agency. This time period may be extended
by the governing body, in the form of a resolution granting such extension
provided the Borough agency has, if necessary, extended the period
of protection pursuant to N.J.S.A. 40:55D-52a. As a condition of this
extension the guarantee amount may be adjusted to 120% of the estimated
cost to construct the improvements at that time and additional inspection
fees deemed necessary by the Borough agency shall be paid.
(5) All performance guarantees shall remain in effect until formally
released by the governing body by a resolution and receipt of an approved
maintenance guarantee as required.
(6) All guarantees, sureties, and lending institutions are subject to
the approval of the Borough Attorney and the governing body.
D. The furnishing of a temporary certificate of occupancy guarantee in the amount of 120% of the cost of installing the remaining improvements which are not covered by a performance guarantee and are required to be completed before the issuance of a permanent certificate of occupancy. The scope and amount of such a guarantee will be determined by the Borough Engineer. Upon posting of a temporary certificate of occupancy guarantee, all sums remaining under a performance guarantee, required pursuant to §
314-2A, which relate to the development, unit, lot, building, or phase of development for which the temporary certificate of occupancy is sought, shall be released. At no time may a Borough hold more than one guarantee or bond of any type with respect to the same line item. The temporary certificate of occupancy guarantee shall be released by the governing body 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.
[Added 10-16-2018 by Ord.
No. 2018-07]
A. In addition to guarantees required pursuant to §
314-2, a developer shall furnish to the Borough a separate guarantee, referred to herein as a "safety and stabilization guarantee," in favor of the Borough, to be available to the Borough solely for the purpose of returning property that has been disturbed to a safe and stable condition or otherwise implementing measures to protect the public from access to an unsafe or unstable condition, only in the circumstance that: 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 Borough to the developer of the Borough's intent to claim payment under the guarantee.
B. The amount for the safety and stabilization guarantee shall be calculated
to equal the following:
(1) For a development with bonded improvements in an amount not exceeding
$100,000, shall be $5,000.
(2) For a development with bonded improvements exceeding $100,000, shall
be calculated as a percentage of the bonded improvement costs of the
development or phase of development as follows:
(a)
$5,000 for the first $100,000 of bonded improvement costs, plus
2.5% of bonded improvement costs in excess of $100,000 up to $1,000,000,
plus 1% of bonded improvement costs in excess of $1,000,000.
C. Notice. The Borough shall not provide notice of its intent to claim
payment under a safety and stabilization guarantee until a period
of at least 60 days has elapsed during which all work on the development
has ceased for reasons other than force majeure. The Borough shall
provide written notice to a developer by certified mail or other form
of delivery providing evidence of receipt.
[Added 10-16-2018 by Ord.
No. 2018-07]
A. The developer shall post with the Borough, prior to the release of a performance guarantee required pursuant to §
314-2, a maintenance guarantee, in an amount not to exceed 15% of the cost of the improvements which are being released.
B. The developer shall post with the Borough, upon the inspection and
issuance of final approval of the following private site improvements
by the Borough Engineer, a maintenance guarantee in an amount not
to exceed 15% of the cost of the installation, which cost shall be
determined by the Borough Engineer according to the method of calculation
set forth in Section 15 of N.J.S.A. 40:55D-53.4, of the following
private site improvements:
(1) Stormwater management basins;
(2) In-flow and water quality structures within the basins; and
(3) The out-flow pipes and structures of the stormwater management system,
if any.
C. The term of the maintenance guarantee shall be for a period not to
exceed two years and shall automatically expire at the end of the
established term.
[Added 10-16-2018 by Ord.
No. 2018-07]
A. Prior to the signing and recording of final major subdivision plats
and as a condition of final site plan approval in the case of a site
plan, the developer shall enter into the agreement with the governing
body if so required by the Borough agency. This agreement shall be
of a form that is acceptable to the Borough Attorney and one in which
the developer agrees to abide by the terms and conditions of approval,
construct the required improvements in accordance with the approved
plans, agree to maintain the constructed improvements, including,
but not limited to, payment of street lighting charges, snow removal,
maintenance of storm drainage, sewer and water facilities. The developer
also shall agree that in the event the improvements are not maintained,
the Borough can utilize the cash portions of the performance guarantees
to immediately attend to items presenting a safety hazard.
B. The developer shall reimburse the Borough for the cost and expense
of the developer's agreement and filing of the developer's
agreement with the Bergen County Clerk in accordance with the applicable
professional contract, prior to execution of same.
[Added 10-16-2018 by Ord.
No. 2018-07]
In the event that other governmental agencies or public utilities
will automatically own the utilities to be installed or the improvements
are covered by a performance or maintenance guarantee to another governmental
agency, no performance or maintenance guarantee, as the case may be,
shall be required by the Borough for such utilities or improvements.
[Added 10-16-2018 by Ord.
No. 2018-07]
If the required improvements are not completed or corrected
in accordance with the performance guarantee, the obligor and surety,
if any, shall be liable thereon to the Borough for the reasonable
cost of the improvements not completed or corrected, and the Borough
may either prior to or after the receipt of the proceeds thereof complete
such improvements. Such completion or correction of improvements shall
be subject to the public bidding requirements of the Local Public
Contracts Law, N.J.S.A. 40A:11-1 et seq.
[Added 10-16-2018 by Ord.
No. 2018-07]
All improvements shall be in accordance with the design standards
of the Borough Code or as authorized by a design exception granted
by the reviewing board and shall be subject to inspection and approval
by the Borough Engineer. The Borough Engineer shall be notified 24
hours prior to the start of the various phases of the work, and if
discontinued, shall again be notified when the work will be continued.
[Added 10-16-2018 by Ord.
No. 2018-07]
A. Upon substantial completion of all required street improvements (except
for top course), and appurtenant utility improvements, and the connection
of same to the public system, the obligator may request of the governing
body in writing, by certified mail addressed in care of the Borough
Clerk, that the Borough Engineer prepare, in accordance with the itemized
cost estimate prepared by the Borough Engineer and appended to the
performance guarantee pursuant to subsection 315-2(a) of this section, a list of all uncompleted or unsatisfactory completed
improvements. If such a request is made, the obligor shall send a
copy of the request to the Borough Engineer. The request shall indicate
which Borough improvements have been completed and which improvements
remain uncompleted in the judgment of the obligor. Concurrent with
this notice the obligor shall forward a set of as-built plans for
the following:
(1) Roads (plan and profiles);
(2) Surface and stormwater drainage (plans and profiles) for facilities
in roads and easements;
(3) Sanitary sewers including individual lot connections and cleanouts
(plans and profiles) for facilities in roads and easements;
(4) Water mains, gas mains and underground electric, telephone and community
antenna television (CATV) conduits (plans and profiles) for facilities
in roads and easements.
B. Upon acceptance of the as-built plan information by the Borough Engineer,
two Mylar and four paper copies of the as-built plan shall be submitted
to the Borough. Thereupon the Borough Engineer shall inspect all bonded
improvements of which such notice has been given and shall file a
detailed list and report, in writing, with the governing body and
shall simultaneously send a copy to the obligor not later than 45
days after receipt of the obligor's request. The list prepared
by the Borough Engineer shall state, in detail, with respect to each
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 Borough 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 Borough Engineer and
appended to the performance guarantee pursuant to subsection 315-2(a)
of this section.
C. The governing body, by resolution, shall either approve the bonded
improvements determined to be complete and satisfactory by the Borough
Engineer, or reject any or all of these bonded improvements upon the
establishment in the resolution of the cause for rejection, and shall
approve and authorize the amount of reduction to be made in the performance
guarantee and the safety and stabilization bond relating to the improvements
accepted, in accordance with the itemized cost estimate prepared by
the Borough Engineer and appended to the performance guarantee pursuant
to subsection 315-2(a) of this section. This resolution shall be adopted not later than 45 days
after receipt of the list and report prepared by the Borough Engineer.
Upon adoption of the resolution by the governing body, the obligor
shall be released from all liability pursuant to its performance guarantee
and the safety and stabilization bond with respect to those approved
bonded improvements except for the portion adequately sufficient to
secure completion or correction of the improvements not yet approved;
provided that 30% of the amount of the performance guarantee and the
safety and stabilization bond posted may be retained to ensure completion
and acceptability of all improvements.
D. If the Borough Engineer fails to send or provide the list and report as requested by the obligor pursuant to Subsection
A within 45 days from receipt of the request, the obligor may apply to the court in a summary manner for an order compelling the Borough 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 bonded improvements determined by the Borough 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 Borough 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 Borough Engineer and appended to the performance guarantee pursuant to subsection 315-2(a) of this section; and the cost of applying to the court, including reasonable
attorney's fees, may be awarded to the prevailing party.
E. In the event that the obligor has made a cash deposit with the Borough
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, provided that if the safety and stabilization
guarantee is included as a line item of the performance guarantee
the Borough may retain cash equal to the amount of the remaining safety
and stabilization guarantee.
F. If any portion of the required bonded improvements is rejected, the
approving authority may require the obligor to complete or correct
such improvements and, upon completion or correction, 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
governing body or the Borough Engineer.
H. The obligor shall reimburse the Borough for all reasonable inspection
fees paid to the Borough Engineer for the foregoing inspection of
improvements. The Borough may require the developer to post the inspection
fees in escrow in an amount:
(1) Not to exceed, except for extraordinary circumstances, the greater
of $500 or 5% of the cost of bonded improvements estimated pursuant
to the Municipal Land Use Law.
(2) Not to exceed 5% of the cost of private site improvements that are
not subject to a performance guarantee, which cost shall be determined
pursuant to Section 15 of P.L. 1991, c. 256 (N.J.S.A. 40:55D-53.4).
(3) For those developments for which the reasonably anticipated fees
are less than $10,000, fees may, at the option of the developer, be
paid in two installments. The initial amount deposited by a developer
shall be 50% of the reasonably anticipated fees. When the balance
on deposit drops to 10% of the reasonably anticipated fees because
the amount deposited by the developer has been reduced by the amount
paid to the Borough Engineer for inspection, the developer shall deposit
the remaining 50% of the anticipated inspection fees.
(4) For those developments for which the reasonably anticipated fees
are $10,000 or greater, fees may at the option of the developer be
paid in four installments. The initial amount deposited by a developer
shall be 25% of the reasonably anticipated fees. When the balance
on deposit drops to 10% of the reasonably anticipated fees because
the amount deposited by the developer has been reduced by the amount
paid to the Borough Engineer for inspection, the developer shall file
additional deposits of 25% of the reasonably anticipated fees.
(5) The Borough Engineer shall not perform any inspection if sufficient
funds to pay for those inspections are not on deposit, nor shall the
developer proceed with any work for which an inspection is required
until sufficient funds are on deposit, provided that the Borough delivers
to the developer a written inspection escrow deposit request, signed
by the Borough Engineer, which informs the developer of the need for
additional inspections, details the items or undertakings that require
inspection, estimates the time required for those inspections, and
estimates the cost of performing those 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 subsection
shall be applied by stage or section.
J. No performance guarantees shall be released if the developer shall
be in default of its developer's agreement in the payment of
escrow fees or payment of taxes.
[Added 10-16-2018 by Ord.
No. 2018-07]
To the extent that any of the improvements have been dedicated
to the Borough on the subdivision plat, site plan and/or zoning permit,
the municipality shall be deemed, upon the release of any performance
guarantee required hereunder, to accept dedication for public use
any improvements made thereunder, provided that such improvements
have been inspected and have received final approval by the Borough
Engineer.
[Added 10-16-2018 by Ord.
No. 2018-07]
The installation of any subdivision improvements or the commencement
of any clearing and grading subsequent to preliminary approval shall
not be undertaken unless the following has been done:
A. If at any time of preliminary approval but prior to the commencement
of final approval the developer elects to proceed with the installation
of improvements required under this chapter, the developer shall furnish
the Borough with the final construction drawings and details.
B. The Municipal agency having jurisdiction over the subdivision (Planning
Board or Board of Adjustment) in consultation with the Borough Engineer
shall review the final construction plans to determine that the clearing,
grading and/or installation of improvements will not hinder future
developments or create physical or aesthetic problems in the event
that further development of the site is not undertaken.
C. The required construction, inspection, engineering, and administration
fees have been paid, and adequate performance guarantees have been
posted to provide for the cost to the Borough of performing work that
may be necessary to protect adjacent property owners and the public
interest in the event that such clearing, grading and/or further development
of the site is not undertaken.
D. Such performance guarantees shall include, but are not limited to,
the cost of the Borough providing drainage facilities necessary to
protect off-tract areas from flooding, screening, or fencing that
may be required and all improvements to be undertaken which are within
existing public rights-of-way or easements.
E. In addition to the performance guarantee, a developer shall furnish
to the Borough a separate guarantee, referred to as a "safety and
stabilization bond," in favor of the Borough, for the purpose of returning
property that has been disturbed to a safe and stable condition or
otherwise implementing measures to protect the public from access
to an unsafe or unstable condition.
F. Prior to any disturbance of the site or commencement of any construction,
the developer shall enter into an agreement with the governing body.
This agreement shall be of a form that is acceptable to the Borough
Attorney and one in which the developer agrees to abide by the terms
and conditions of approval, construct the required improvements in
accordance with the approved plans, agrees to maintain the site and
the constructed improvements. The developer also shall agree that
in the event that the site and improvements are not maintained, the
Borough can utilize the cash portions of the performance guarantee
to immediately attend to items presenting a safety hazard.
G. No development permit shall be issued, nor any work commenced on
site, until compliance with this section and notice of intention to
commence construction of such improvements shall be furnished to the
Borough Engineer.
H. At least two weeks prior to the start of any construction, the developer
shall notify the Borough Engineer of his intention to start work so
that a preconstruction meeting can be arranged between the developer
and the Borough Engineer.
I. The Borough Engineer must be notified at least 48 hours in advance
of any on-site development.