A.
Before filing of final subdivision plats, or 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 pursuant N.J.S.A. 40:55D-65, a developer shall furnish the following guarantees for purposes of assuring the installation and maintenance of certain improvements.
(1)
Performance guarantee.
(a)
A developer shall furnish a performance guarantee in favor of the Township in an amount not to exceed 120% of the cost of installation of the following improvements shown on the approved plans or plat required by an approval or developer's agreement, ordinance, or regulation to be dedicated to the public entity and not yet installed: streets, pavement, gutters, curbs, sidewalks, streetlighting, street trees, surveyor's monuments as shown on the final map and required by the map filing law, water mains, sanitary sewers, community septic systems, drainage structures, public improvements of open space, and any grading necessitated by the preceding improvements.
(b)
A developer shall furnish a performance guarantee in favor of the Township in an amount not to exceed 120% of the cost of installation of privately-owned perimeter buffer landscaping within an approved phase or section of a development otherwise required by this Code or imposed as a condition of approval. At a developer's option, a separate performance guarantee may be posted for privately-owned perimeter buffer landscaping.
(c)
The Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, 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. The developer shall provide a preliminary of the quantities and types of bonded improvements, to be reviewed and verified by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, based upon the unit prices established by Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, on an annual basis. The total estimated cost of constructing all improvements shall be based upon the estimated contract construction costs established by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, and 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)
The performance guarantee shall be approved by the Township Attorney as to form, sufficiency and execution, and may be in the form of cash, certified check, negotiable securities, bond issued by a bonding company approved by the Township Attorney or any other type of surety acceptable to and approved by the Township Council and in a form acceptable to the Township Attorney.
(e)
Such performance guarantee shall run for a period to be fixed by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, 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. for the installation of all or any portion of the improvements, except that:
[1]
The time allowed for installation of the improvements for which the performance guarantee has been provided may be extended by resolution of the Township Council, provided that, if required, the period of final approval has been extended by the proper municipal agency, and provided further that:
[2]
Such extension shall not exceed one year.
[3]
There shall not be more than three such extensions; and
[4]
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 as determined by the Township Engineer in accordance with the itemized cost estimate.
(f)
If the bonded improvements are not completed or corrected in accordance with the performance guarantee, 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 may either prior to or after the receipt of the proceeds thereof complete such improvements.
(g)
[1]
Upon substantial completion of all required improvements, including street improvements (except for the top course) and appurtenant utility improvements, and the connection of same to the public system, the developer may request of the Township Council in writing, by certified mail addressed in care of the municipal Clerk, that the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, prepare, in accordance with the itemized cost estimate appended to the performance guarantee, a list of all uncompleted or unsatisfactory completed bonded improvements. If such a request is made, the developer shall send a copy of the request to the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements. The request shall indicate which bonded improvements have been completed and which bonded improvements remain uncompleted.
[2]
Thereupon, the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, shall inspect all bonded improvements covered by the request and shall file a detailed list and report, in writing, with the Township Council, and shall simultaneously send a copy thereof to the developer not later than 45 days after receipt of the request.
[3]
The list prepared by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, shall state, in detail, with respect to each bonded improvement determined to be incomplete or unsatisfactory, the nature and extent of the incompleteness or the nature and extent of, and remedy for, the unsatisfactory state of each completed bonded improvement determined to be unsatisfactory.
[4]
The report prepared by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, shall identify each bonded 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 bonded improvement, in accordance with the itemized cost estimate.
(h)
The Township Council, by resolution, within 45 days after receipt of the list and report prepared by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, shall either approve the bonded improvements determined to be complete and satisfactory or reject any or all of them 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 relating to the improvements accepted, in accordance with the itemized cost estimate, provided that, if the sum of the approved bonded improvements would exceed 70% of the total amount of the performance guarantee, the Township will retain 30% of the amount of the total performance guarantee and safety and stabilization guarantee as set forth below to ensure completion and acceptability of the bonded improvements, further provided that any amount of the performance guarantee attributable to bonded improvement for which a temporary certificate of occupancy guarantee has been posted shall be released, even if such release would reduce the amount held by the Township to below 30%.
(i)
Upon adoption of the resolution by the Township Council, the obligor shall be released from all liability pursuant to its performance guarantee with respect to those approved improvements, except for that portion 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 as set forth below may be retained to ensure completion and acceptability of all improvements.
(2)
Temporary certificate of occupancy guarantee.
(a)
A developer seeking a temporary certificate of occupancy for a development, unit, lot, building or phase of development pursuant to Section 108-13.7 shall furnish a temporary certificate of occupancy guarantee in favor of, and available to, the Township in an amount not to exceed 120% of the cost of installation of 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 a permanent certificate of occupancy for the development, unit, lot, building or phase of development. The Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, shall determine the scope and amount of the temporary certificate of occupancy guarantee.
(b)
Upon posting of a temporary certificate of occupancy guarantee, all sums posted under a performance guarantee which relate to the improvements or items which remain to be completed or installed shall be released, so that a developer shall not be required to post more than one guarantee or bond of any type with respect to the same line item.
(c)
The temporary certificate of occupancy guarantee shall be released upon the issuance of a permanent certificate or occupancy as to those improvements to which it relates.
(3)
Safety and stabilization guarantee.
(a)
A developer shall furnish a safety and stabilization guarantee in favor of, and available to, the Township 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 where: (1) site disturbance has commenced and thereafter all work on the development has ceased for at least 60 consecutive days for reasons other than force majeure, and (2) after such sixty-day (60) period, work has not recommenced within 30 days following written notice to the developer of the Township's intent to claim payment under the guarantee.
(b)
The amount of the safety and stabilization guarantee for a development with bonded improvements in an amount not exceeding $100,000 shall be $5,000.00. The amount of the safety and stabilization guarantee for a development with bonded improvements in an amount exceeding $100,000.00 shall be (1) $5,000.00 for the first $100,000.00 of bonded improvement costs, plus two and one-half (2 1/2%) percent of bonded improvement costs in excess of $100,000.00, plus 1% of bonded improvement costs in excess of $1,000,000.00.
(c)
At the developer's option, the safety and stabilization guarantee may be a separate guarantee or it may be a line item of the performance guarantee.
(d)
The safety and stabilization guarantee shall be released upon the developer's furnishing of a performance guarantee which includes a line item for safety and stabilization in the amount required under this section.
(e)
The safety and stabilization guarantee shall be released by resolution of the Township Council upon the Township Engineer's determination that development of the project site has reached a point that the improvements installed are adequate to avoid any potential threat to public safety.
(f)
The safety and stabilization guarantee shall be reduced by the same percentage as the performance guarantee at the time of each performance guarantee reduction.
(4)
Maintenance guarantee.
(a)
Prior to the release of a performance guarantee, a developer shall post with the Township a maintenance guarantee in favor of the Township in an amount not to exceed 15% of the cost of the installation of the improvements for which the performance guarantee is being released.
(b)
Upon inspection and issuance of final approval of the following private site improvements by the Township Engineer, a developer shall post with the Township a maintenance guarantee in favor of the Township in an amount not to exceed 15% of the cost of installation: 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.
(c)
The cost of the maintenance guarantees shall be determined by the Township Engineer, and the Director of the Utility Department in the case of water and sewer improvements, according to the method of calculation set forth in Subsection A(1)(c).
(d)
The term of a maintenance guarantee posted by a developer shall be for a period of two years and shall automatically expire at the end of the two-year term.
(e)
Upon release of the maintenance guarantee by the Township Council, the unused inspection fee shall be returned to the developer.
(5)
Successor developer guarantee.
As a condition of approval of a permit update under the State Uniform Construction Code, for the purpose of updating the name and address of the owner of property on a construction permit, a successor developer shall furnish replacement performance and maintenance guarantees in accordance with Subsection (A)(1) and (4) above.
B.
Surety. If a developer posts a bond as guarantee, there must be attached to said bond an authority of the surety company empowering the person or persons who executed said bond for the surety company to do so. If the bonding company is not a licensed New Jersey entity, there should also be attached to the bond proof of its authority to do business in New Jersey and a copy of its last financial statement, made not more than one year before, showing its financial condition. If the principal on the bond is a partnership, corporation, limited liability company or other business entity, there must be attached to the bond a certified copy of a resolution adopted by its Board of Directors, members or partners, as appropriate, authorizing the execution and delivery of said bond. Said bond must also bear the seal of the surety and the principal, of a corporation.
C.
Inspection fees; escrows.
(1)
The cost of inspections shall be the responsibility of the developer, who shall post in escrow with the Township funds to reimburse the Township for reasonable inspection fees charged by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, for inspection of the improvements to be installed, in the following amounts:
(2)
The cost shall be determined by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, according to the method of calculation set forth in Subsection A(1)(c).
(3)
These funds shall be in addition to the amount of required guarantees and all application fees. These funds shall be deposited in a special escrow account and shall not accrue interest.
(4)
For developments for which the total improvement inspect fees are less than $10,000, escrow funds may be deposited 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, and Director of the Utility Department in the case of water and sewer improvements, for inspections, the developer shall deposit the remaining 50% of the inspection fees.
(5)
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.
(6)
If the amount in escrow for the payment of inspection fees is insufficient to cover the cost of additional required inspections, as determined by the Township Engineer, and the Director of the Utility Department in the case of water and sewer improvements, the developer shall deposit additional funds in escrow upon receipt of a written inspection escrow deposit request signed by the Township Engineer, and Director of the Utility Department in the case of water and sewer improvements, which informs the developer of the need for additional funds, details the items or undertakings that require inspection, estimates the time required for those inspections, and estimates the cost of performing those inspections.
(7)
In the event that final approval is by stages or sections of development pursuant to the N.J.S.A. 40:55D-38, the provisions of this section shall be applied by such stage or section.