[Ord. No. 18-2016]
A. 
Before recording of final subdivision plats, or as a condition of final site plan approval, the approving authority may require and shall accept in accordance with the standards adopted by this Ordinance for the purpose of assuring the installation and maintenance of on-tract improvements:
1. 
The furnishing of a performance guarantee in favor of the City in an amount not to exceed 120% of the cost of the installation for improvements it may deem necessary or appropriate including: streets, grading, pavement, gutters, curbs, sidewalks, street lighting, shade 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.), water mains, culverts, storm sewers, sanitary sewers or other means of sewage disposal, drainage structures, erosion control and sedimentation control devices, public improvements of open space and, in the case of site plans only, other on-site improvements and landscaping. The City 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.
2. 
Provision for a maintenance guarantee to be posted with the Governing Body for a period not to exceed two years after final acceptance of the improvement, in an amount not to exceed 15% of the cost of the improvement. In the event that other governmental agencies or public utilities automatically will own the utilities to be installed of the improvements are covered by performance or maintenance guarantee to another governmental agency, no performance or maintenance guarantee, as the case may be, shall be required by the municipality 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 the 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. The City Engineer shall determine the cost of the improvements 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 improvements are not completed or corrected in accordance with the performance guarantee, the obligator and surety, if any, shall be liable thereon to the City for the reasonable cost of the improvements not completed or corrected and the City may either prior to or after the receipt of the proceeds thereof complete such improvements.
D. 
When all of the required improvements have been completed, the obligor may request of the Governing Body in writing, by certified mail addressed in care of the City Clerk, that the City Engineer prepare, in accordance with the itemized cost estimate prepared by the City Engineer and appended to the performance guarantee pursuant to subsection A.1 above, a list of all uncompleted or unsatisfactory completed improvements. The request shall indicate which improvements have been completed and which improvements remain uncompleted in the judgment of the obligor. Thereupon the City Engineer shall inspect all 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.
The list prepared by the City 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 City 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 City Engineer and appended to the performance guarantee pursuant to subsection A.1 above.
E. 
The Governing Body, by resolution, shall either approve the improvements determined to be complete and satisfactory by the City Engineer, or reject any or all of these 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 City Engineer and appended to the performance guarantee pursuant to subsection A.1 above. This resolution shall be adopted not later than 45 days after receipt of the list and report prepared by the City 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 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 posted may be retained to ensure completion and acceptability of all improvements.
For the purposes of releasing the obligor from liability pursuant to its performance guarantee, the amount of the performance guarantee attributable to each approved improvement shall be reduced by the total amount for each such improvement, in accordance with the itemized cost estimate prepared by the City Engineer and appended to the performance guarantee pursuant to subsection A.1 above, including any contingency factors applied to the cost of installation. If the sum of the approved improvements would exceed 70% of the total amount of the performance guarantee, then the City may retain 30% of the amount of the total performance guarantee to ensure completion and acceptability of all improvements.
F. 
If any portion of the required improvements is rejected, the Governing Body 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. 
The obligor shall reimburse the City for all inspection fees paid to the City Engineer for the foregoing inspection of improvements.
H. 
To the extent that any of the improvements have been dedicated to the City on the subdivision plat or site plan, the Governing Body shall be deemed, upon the release of any performance guarantee required pursuant to subsection A.1 above, 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 City Engineer.