Township of Long Beach, NJ
Ocean County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Board of Commissioners of the Township of Long Beach 2-4-2019 by Ord. No. 19-02C. Amendments noted where applicable.]
As used in this chapter, the following terms shall have the meanings indicated:
APPLICANT
Any person or legal entity submitting an application for development.
DEVELOPMENT
The division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any building or other structure or of any mining excavation or landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to P.L. 1975, c. 291 (N.J.S.A. 40:55D-1 et seq.).
MAINTENANCE GUARANTEE
Any security which may be accepted by the Township for the maintenance of any improvements, including, but not limited to, surety bonds, letters of credit under certain circumstances provided by law, and cash.
PERFORMANCE GUARANTEE
Any security which may be accepted by the Township, including but not limited to surety bonds, letters of credit under certain circumstances provided by law, and cash.
PERSON
An individual, partnership, corporation, cooperative association, or any other legal entity.
Before filing of final subdivision plats, 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-65, the Township may require and shall accept for the purpose of assuring the installation and maintenance of certain on-tract improvements, the furnishing of guarantees pursuant to the requirements of this chapter.
A. 
The furnishing of a performance guarantee in favor of the Township in an amount equal to 120% of the cost for the purpose of guaranteeing the completion of only those improvements required by an approval or developer's agreement, ordinance, or regulation to be dedicated to a public entity that have not yet been installed. The 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 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"; water mains; sanitary sewers; drainage structures; public improvements of open space; and any grading necessitated by the preceding improvements. The performance guarantee may also be required to include a guarantee for the installation of privately owned perimeter buffer landscaping. At the applicant's option, a separate performance guarantee may be posted for the privately owned perimeter buffer landscaping.
(1) 
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. 
Successor applicants may be required by the Board of Commissioners to furnish a replacement performance guarantee in accordance with Subsection A of this Section for the purpose of assuring the installation of improvements. A replacement performance guarantee shall not be accepted without securing the following:
(1) 
Written confirmation from the new obligor that the intent of the new obligor is to furnish a replacement performance guarantee, relieving the predecessor obligor and surety, if any, of any obligation to install improvements; and
(2) 
Written verification from the Township Engineer that the replacement performance guarantee is of an amount sufficient to cover the cost of the installation of improvements, but not to exceed 120% of the cost of the installation, which verification shall be determined consistent with N.J.S.A. 40:55D-53.
C. 
The time allowed for installation of the bonded improvements for which the performance guarantee has been provided may be extended by the Board of Commissioners 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.
D. 
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 Board of Commissioners in writing, by certified mail addressed in care of the Municipal 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 bonded 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 bonded 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 Board of Commissioners, and shall simultaneously send a copy thereof to the obligor not later than 45 days after receipt of the obligor's request.
(1) 
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 bonded improvement determined to be unsatisfactory. The report prepared by the Township Engineer 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 prepared by the Township Engineer and appended to the performance guarantee pursuant to this section.
E. 
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 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. 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 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.[1]
[1]
Editor's Note: See N.J.S.A. 40A:11-1 et seq.
A. 
In the event that the applicant 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 applicant shall furnish a separate 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.
(1) 
Upon posting of a temporary certificate of occupancy guarantee, all sums remaining under a performance guarantee that 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.
B. 
The scope and amount of the temporary certificate of occupancy guarantee shall be determined by the construction code official or zoning officer or their designee, and the form of the guarantee shall be approved by the Township Attorney. The temporary certificate of occupancy guarantee shall be released by the construction code official or zoning officer or their designee 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.
A. 
As a condition of final site plan approval, the Land Use Board may require and shall accept a safety and stabilization guarantee. At the applicant's option, a safety and stabilization guarantee may be furnished either as a separate guarantee or as a line item of the performance guarantee. A safety and stabilization guarantee shall be available 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.
A safety and stabilization guarantee is only available in the event:
(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 Township to the applicant of the Township's intent to claim payment under the guarantee.
B. 
The Township shall not provide notice of its intent to claim payment under the 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 Township shall provide written notice to the applicant by certified mail or other form of delivery providing evidence of receipt.
(1) 
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.
(2) 
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:
(a) 
Five thousand dollars for the first $100,000 of bonded improvement costs, plus 2 1/2% 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.
(b) 
The separate safety and stabilization guarantee shall be released upon the furnishing of a performance guarantee that includes a line item for safety and stabilization in the amount required.
(c) 
The safety and stabilization guarantee shall be released upon the Township Engineer's determination that the development of the project site has reached a point that the improvements installed are adequate to avoid any potential threat to public safety.
A. 
The applicant shall post with the Township, prior to the release of a performance guarantee, a maintenance guarantee in an amount equal to 15% of the cost of the installation of the improvements covered under the performance guarantee, along with the following site improvements: stormwater management basins; inflow and water quality structures within the basins; and the outflow pipes and structures of the stormwater management system.
B. 
The cost shall be determined by the Township Engineer in accordance with the method of calculation set forth in N.J.S.A. 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.
A. 
The obligor shall reimburse the Township for reasonable inspection fees paid to the Township Engineer for the inspection of improvements; which fees shall not exceed the sum of both amounts set forth below in Subsection A(1) and (2), except that if the Township determines that the amount in escrow for the payment of inspection fees as calculated is insufficient to cover the cost of additional required inspections, the Township may require the applicant to deposit additional funds in escrow, provided that the municipality delivers to the applicant a written inspection escrow deposit request, signed by the Township Engineer, which informs the applicant 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.
(1) 
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 § 103-3A of this chapter.
(2) 
Not to exceed 5% of the cost of private site improvements that are not subject to a performance guarantee pursuant to § 103-3, which cost shall be determined pursuant to N.J.S.A. 40:55D-53.4.
B. 
For those developments for which the inspection fees total $10,000 or greater, fees may, at the option of the applicant, be paid in four installments. The initial amount deposited in escrow by an applicant 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 applicant has been reduced by the amount paid to the Township Engineer for inspection, the applicant shall make additional deposits of 25% of the inspection fees. For those developments for which the inspection fees total less than $10,000, fees may, at the option of the applicant, be paid in two installments. The initial amount deposited in escrow by an applicant 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 applicant has been reduced by the amount paid to the municipal engineer for inspections, the applicant shall deposit the remaining 50% of the inspection fees.
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.
To the extent that any of the improvements have been dedicated to the Township on the subdivision plat or site plan, the Board of Commissioners shall be deemed, upon the release of any performance guarantee required pursuant to this chapter, to accept dedication for public use of streets or roads and any other improvements made thereon according to site plans and subdivision plats approved by the approving authority, provided that such improvements have been inspected and have received final approval by the Township Engineer.
A. 
The Board of Commissioners, 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 § 103-3. The 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 Board of Commissioners, 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 total 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.
B. 
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 § 103-3, 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 Township may retain 30% of the amount of the total performance guarantee and safety and stabilization guarantee to ensure completion and acceptability of 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%.
C. 
The Township Engineer shall provide the list and report as requested by the obligor within 45 days from receipt of the request.
D. 
The Board of Commissioners shall 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.
E. 
In the event that the obligor has made a cash deposit with the Township or as part of the performance guarantee, then any partial reduction granted in the performance guarantee pursuant to § 103-10 above 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 applicant has furnished a safety and stabilization guarantee, the municipality 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 Board of Commissioners 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 chapter shall be followed.
A. 
If the property or any part of same is sold, or otherwise conveyed to a successor applicant prior to the completion and acceptance of all improvements, an assignment of developer's agreement and/or new performance, maintenance, or other guarantees shall be required from the new owner or successor applicant. Upon the transfer of ownership of property that is the subject of a construction permit, and prior to beginning or continuing work authorized by the construction permit, the new owner or successor applicant shall file with the Building Department an application for a permit update to notify the Construction Department of the name and address of the new owner or successor applicant and of all other changes to information previously submitted to the Construction Department. The Construction Department shall not approve the application for a permit update until it receives notification from the governing body or its designee that the new owner or successor developer has furnished adequate replacement performance, maintenance or other guarantees and assignment of developer's agreement.
B. 
The Township may accept an assignment of guarantees in accordance with the opinion of the Township Attorney or may direct the applicant or owner to obtain new guarantees pursuant to the requirements of this chapter and N.J.S.A. 40:55D-1 et seq.