A.
Prior to the signing of a final plat or deeds, issuance of a development permit and/or the commencing of any clearing, grading or installation of improvements, the developer shall have filed with the municipality a performance guaranty and inspection fees.
(1)
The guaranty shall be sufficient and in an amount as determined by the Municipal Engineer for the construction of the on-site, off site and off tract improvements necessary to protect the adjacent property and the public interest, health, safety and welfare for development of a subdivision or site plan where improvements have not been completed. Such improvements shall include, but not be limited to, streets, public or private; grading; pavement; gutters; curbs; sidewalks; streetlighting; landscaping, shade trees; surveyors' monuments as shown on the final map and required by the Map Filing Law, P.L. 1960, c. 141 (N.J.S.A. 46:23-9.9 et seq.); culverts; storm sewers; drainage structures; erosion and sediment control devices; public improvements of open space; and, in the case of site plan only, wetlands will be maintained by nonpublic entities; on-site improvements and landscaping. The applicant shall provide to the City of Perth Amboy a preliminary estimate of the quantities and types of improvements to be reviewed and verified by the Municipal Engineer. The guaranty shall be based upon the unit prices established by the Municipal Engineer on an annual basis.
(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 Municipal Council 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 municipality of constructing all improvements shall be based upon the estimated contract construction costs, which are established by the Municipal Engineer, 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 twenty percent (20%) of the estimated contract construction costs.
(4)
Such performance guaranty may be in the form of cash, certified check, negotiable securities, a performance bond issued by a bonding company approved by the Corporation Counsel or any other type of surety acceptable to and approved by the Municipal Council and in a form acceptable to the Corporation Counsel. The performance guaranty shall be in the favor of the municipality in an amount not to exceed one hundred twenty percent (120%) of the cost of installation of improvements as defined in this Article.
B.
If at the time the performance guaranty is filed with the municipality the developer has not also filed with the municipality 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 municipality which have jurisdiction over improvements on the site or subdivision, the amount of the performance guaranty and inspection fees shall be increased to reflect the cost of such improvements.
C.
All performance guaranties and inspection fees shall run to and be in favor of the City of Perth Amboy in the County of Middlesex.
D.
The performance guaranty shall be approved by the Corporation Counsel 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 Municipal Engineer but in no case for a term longer than the period of final approval set by N.J.S.A. 40:55D-1 et seq. or for the installation of all or any portion of the improvements.
(2)
The time allowed for installation of improvements for which the performance guaranty has been approved may be extended by resolution of the Municipal Council, provided that, if required, the period of final approval has been extended by the proper municipal agency, provided further that:
(a)
Such extension shall not exceed one (1) year.
(b)
There shall not be more than three (3) such extensions.
(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 one hundred twenty percent (120%) of the cost of the installation of all uncompleted improvements as determined by the Municipal Council 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 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.
E.
If the required improvements are completed or corrected in accordance with the performance guaranty, the obligor and surety, if any, shall be liable thereupon to the municipality for the reasonable cost of the improvements not completed or corrected, and the municipality shall notify the obligor and surety by certified mail that all improvements shall be completed within ten (10) calendar days after receipt of the notice. If the improvements are not completed, the proceeds of the guaranty shall be reimbursed to the municipality by the obligor and surety.
F.
Upon completion and/or substantial completion of the required improvements as defined in this Article, except the final application of bituminous concrete wearing surface, street shade trees, concrete monuments and the connection of applicable improvements to the public system, the obligor may notify the Municipal Engineer for reduction in the bond as defined in N.J.S.A. 40:55D-53d.
G.
The Municipal Council shall either approve, partially approve or reject the improvements, based upon the Municipal Engineer's report as per the procedures outlined in N.J.S.A. 40:55D-53e.
H.
Nothing herein, however, shall be construed to limit the right of the obligor to contest by legal proceedings any determination of the Municipal Council or the Municipal Engineer as defined in N.J.S.A. 40:55D-53g.
I.
The obligor shall supply the municipality, in advance of any improvements, a reasonable inspection fee and administrative costs for the improvements for a minor subdivision, major subdivision, minor site plan, major site plan, preliminary and final, for the Municipal Engineer to verify that the improvements are completed as shown on the approved plans. The fees for the Municipal Engineer's inspection shall be as follows: the inspection fee required shall be five percent (5%) of the estimated cost of construction as estimated by the Municipal Engineer. There shall be a minimum inspection fee of five hundred dollars ($500.). Further, the Municipal Comptroller shall notify the applicant and require payment of an additional fee equal to fifty percent (50%) of the original fee if and when an inspection fee account retained by the City of Perth Amboy reaches twenty-five percent (25%) of the original inspection fee. The Municipal Comptroller shall be authorized to require less than the fifty-percent original fee if the Municipal Engineer estimates that the work to be completed can be done by requiring a lesser additional fee deposit to be held by the municipality.
J.
In the event that final approval is by stages or sections of development pursuant to N.J.S.A. 40:55D-11 et seq., the provisions of this section shall be applied by such stage or section.