[Amended 2-15-2012 by Ord. No. 6-2012; Ord. No. 4-2013; Ord. No. 20-2015 § 15; 12-16-2020 by Ord. No.
55-2020]
A. Before filing of final subdivision plats or recording of minor subdivision
deeds, as a condition of final site plan approval or as a condition
to the issuance of a zoning permit pursuant to N.J.S.A. 40:55D-65d,
the Township shall require and accept in accordance with the standards
and regulations adopted pursuant to N.J.S.A. 40:55D-33a for the purpose
of assuring the installation and maintenance of certain on-tract improvements
the furnishing of a performance guarantee and provision for a maintenance
guarantee in accordance with paragraphs (1) and (2) of this subsection.
(1)
Performance guarantee.
(a)
The developer shall furnish a performance guarantee in favor
of the Township in an amount not to exceed 120% of the cost of installation
of only those 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, which cost shall be determined
by the Township Engineer according to the method of calculation set
forth in section 15 of P.L.1991, c.256 (C.40:55D-53.4) for the following
improvements as shown on the approved plans or plat: streets, pavement,
gutters, curbs, sidewalks, street lighting, street trees, surveyor's
monuments, as shown on the final map and required by "the map filing
law," P.L.1960, c.141 (C.46:23-9.9 et seq.; repealed by section 2
of P.L.2011, c.217) or N.J.S.46:26B-1 through N.J.S.46:26B-8, water
mains, sanitary sewers, community septic systems, drainage structures,
public improvements of open space, and any grading necessitated by
the preceding improvements.
The Township 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.
(b)
The Township shall require a performance guarantee to include, within an approved phase or section of a development privately-owned perimeter buffer landscaping, as required throughout Chapter
134 of the Code or imposed as a condition of approval. At the developer's option, a separate performance guarantee may be posted for the privately-owned perimeter buffer landscaping.
(c)
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 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. Upon posting of a "temporary certificate
of occupancy guarantee," all sums remaining under a performance guarantee,
required pursuant to subparagraph (a) of this paragraph, which relate
to the development, unit, lot building, or phase of development for
which the temporary certificate of occupancy is sought, shall be released.
The scope and amount of the "temporary certificate of occupancy guarantee"
shall be determined by the Township Engineer. At no time may the Township
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 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.
(d)
In addition to a performance guarantee
required pursuant to subparagraph (a) of this paragraph, a developer
shall furnish to the Township a separate guarantee, referred to herein
as a "safety and stabilization guarantee," in favor of the Township
to be available to the municipality 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:
(i)
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
(ii) Work has not recommenced within 30 days following
the provision of written notice by the Township to the developer of
the municipality's intent to claim payment under the guarantee. The
Township 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. A municipality shall provide
written notice to a developer by certified mail or other form of delivery
providing evidence of receipt.
The amount of a "safety and stabilization guarantee" for a development
with bonded improvements in an amount not exceeding $100,000 shall
be $5,000.
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The amount of a "safety and stabilization guarantee" 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:
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(i)
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$5,000 for the first $100,000 of bonded improvement costs, plus
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(ii)
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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.
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(2)
Maintenance guarantees.
(a)
The developer shall post with the Township, prior to the release
of a performance guarantee required pursuant to subparagraph (a),
subparagraph (b), or both subparagraph (a) and subparagraph (b) of
paragraph (1) of this subsection, a maintenance guarantee in an amount
not to exceed 15% of the cost of the installation of the improvements
which are being released.
(b)
The developer shall post with the Township, upon the inspection
and issuance of final approval of the following private site improvements
by the Township Engineer, a maintenance guarantee in an amount not
to exceed 15% of the cost of the installation of the following private
site improvements: stormwater management basins, in-flow and water
quality structures within the basins, and the out-flow pipes and structures
of the stormwater management system, if any, which cost shall be determined
according to the method of calculation set forth in section 15 of
P.L.1991, c .256 (C. 40:55D-53.4).
(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.
(3)
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 guarantee to another governmental
agency, no performance or maintenance guarantee, as the case may be,
shall be required by the Township for such utilities or improvements.
B. The time allowed for installation of the improvements for which the
performance guarantee has been provided may be extended by the governing
body by resolution. As a condition or as part of any such extension,
the amount of any performance guarantee shall be increased or reduced,
as the case may be, to an amount not to exceed 120% of the cost of
the installation, which cost shall be determined by the Township Engineer
according to the method of calculation set forth in N.J.S.A. 40:55D-53.4
as of the time of the passage of the resolution.
C. If the required bonded improvements are not completed or corrected
in accordance with the performance guarantee, the obligor and surety,
if any, shall be liable thereon to the Township for the reasonable
cost of the improvements not completed or corrected and the Township
may either prior to or after 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.
D. Completion of street improvements.
(1)
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 Township Clerk, that the Township Engineer prepare, in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to Subsection
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 Township Engineer. The request shall indicate which bonded improvements have been completed and which improvements remain uncompleted in the judgment of the obligor. Thereupon the Township Engineer shall inspect all bonded improvements covered by the 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.
(2)
The list prepared by the Township 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 Township 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 Township Engineer and appended to the performance guarantee pursuant to §
134-112A(1).
E. Approval by governing body.
(1)
The governing body, by resolution, shall either approve the bonded improvements determined to be complete and satisfactory by the Township 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 Township 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 Township 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 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 Township 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 all 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%.
(2)
If the Township Engineer fails to send or provide the list and report as requested by the obligor pursuant to Subsection
D 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 Township 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 Township 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 Township 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 complete and satisfactory improvements in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to §
134-112A and the cost of applying to the court, including reasonable attorney's fees, may be awarded to the prevailing party.
(3)
In the event that the obligor has made a cash deposit with the
Township 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 developer has furnished
a "safety and stabilization guarantee," the Township 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 Township Engineer.
H.
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(1)
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The obligor shall reimburse the Township for reasonable inspection
fees of the Township Engineer for the foregoing inspection of improvements;
which fees shall not exceed the sum of the amounts set forth in subparagraphs
(a) and (b) of this paragraph. The Township shall require the developer
to post the inspection fees in escrow in an amount:
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(a)
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Not to exceed, except for extraordinary circumstances, the greater of $500 or 5% of the cost of bonded improvements that are subject to a performance guarantee under subparagraph (a), subparagraph (b), or both subparagraph (a) and subparagraph (b) of paragraph (1) of Subsection A of this section; and
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(b)
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not to exceed 5% of the cost of private site improvements that are not subject to a performance guarantee under subparagraph (a) of paragraph (1) of Subsection A of this section, which cost shall be determined pursuant to section 15 of P.L.1991, c.256 (C.40:55D-53.4).
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(2)
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For those developments for which the inspection fees total less
than $10,000, fees may, at the option of the developer, be paid in
two installments. The initial amount deposited in escrow by a developer
shall be 50% of the inspection fees. When the balance on deposit drops
to 10% of the inspection fees because the amount deposited by the
developer has been reduced by the amount paid to the Township Engineer
for inspections, the developer shall deposit the remaining 50% of
the inspection fees.
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(3)
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For those developments for which the inspection fees total $10,000
or greater, fees may, at the option of the developer, be paid in four
installments. The initial amount deposited in escrow by a developer
shall be 25% of the inspection fees. When the balance on deposit drops
to 10% of the inspection fees because the amount deposited by the
developer has been reduced by the amount paid to the Township Engineer
for inspection, the developer shall make additional deposits of 25%
of the inspection fees.
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(4)
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If the Township determines that the amount in escrow for the
payment of inspection fees, as calculated pursuant to subparagraphs
(a) and (b) of paragraph (1) of this subsection, is insufficient to
cover the cost of additional required inspections, the Township shall
require the developer to deposit additional funds in escrow provided
that the municipality delivers to the developer a written inspection
escrow deposit request, signed by the Township 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.
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The Township shall not require that a maintenance guarantee
required pursuant to N.J.S.A. 40:55D-53 be in cash or that more than
10% of a performance guarantee pursuant to that section be in cash.
At the developer's option, some or all of a maintenance guarantee
may be in cash, or more than 10% of a performance guarantee in cash.
The cost of the installation of improvements for the purposes
of N.J.S.A. 40:55D-53 shall be estimated by the Township Engineer
based on documented construction costs for public improvements prevailing
in the general area of the Township. The developer may appeal the
Township Engineer's estimate to the County Construction Board of Appeals
pursuant to N.J.S.A. 40:55D-53.4.
If an approving authority includes as a condition of approval
of an application for development pursuant to N.J.S.A. 40:55D-1 et
seq. the installation of street lighting on a dedicated public street
connected to a public utility, then upon notification in writing by
the developer to the approving authority and governing body of the
Township that (1) the street lighting on a dedicated public street
has been installed and accepted for service by the public utility
and (2) that certificates of occupancy have been issued for at least
50% of the dwelling units and 50% of the floor area of the nonresidential
uses on the dedicated public street or portion thereof indicated by
section pursuant to N.J.S.A. 40:55D-38 the Township shall, within
thirty (30) days following receipt of the notification, make appropriate
arrangements with the public utility for, and assume the payment of,
the costs of the street lighting on the dedicated public street on
a continuing basis. Compliance by the Township with the provisions
of this section shall not be deemed to constitute acceptance of the
street by the Township.
All off-tract improvements shall be made in accordance with
the provisions of N.J.S.A. 40:55D-42.
Prior to the granting of final approval of any subdivision, cluster or planned development and prior to the issuance of any building permits for any land use, including land uses which require site plan approval, pursuant to this chapter, and any residence or other use of property on an unimproved street or where any off-tract improvements have not then been installed, the developer shall pay his pro rata share of the cost of providing any reasonable and necessary street improvements and water, sewerage and drainage facilities, and easements therefor, located outside the property limits of the development but necessitated or required by construction or improvements within the development. All payments shall be in the manner provided in §
134-117.3 below, it being the intent of this section that the developer bear that portion of the cost which bears a rational nexus to the needs created by the development and/or benefits conferred upon such development.
Off-site and off-tract improvements shall include the following:
A. All improvements of the types described in this chapter for on-site
installation where the need for the providing of such improvements
off-site or off-tract is, in whole or in part, made necessary by the
proposed development application will confer a benefit upon the developer's
lands which are the subject of the development application.
B. Any improvement or facility, the installation of which is required
in the public interest and the public need for which would not arise
but for the improvement of the lands which are the subject of the
development application and the installation of which would confer
a benefit upon the developer's lands which are the subject of the
development application. Improvements required to maintain a safe
flow of vehicular and pedestrian traffic are specifically declared
to be necessary in the public interest.
C. The installation of new or the extension or modification of existing
improvements made necessary in whole or in part by the development
application which will be benefited by the improvement.
In the event that the developer shall not be required to install
off-site or off-tract improvements by virtue of the provisions of
this chapter, then and in that event there shall be paid to the Township
Treasurer the amount of the developer's share of the finally determined
cost of the off-site or off-tract improvement. All moneys received
by the Township in accordance with the provision of this section shall
be deposited in an interest-bearing account, and such funds shall
be used only for the improvements for which they were deposited or
improvements serving the same purpose. If the improvements are not
initiated within a period of 15 years from the date of payment, or
other mutually agreeable period of time, all deposited funds shall
be returned to the developer, together with accumulated interest.