[Amended 9-18-1962; 3-26-1981 by Ord. No. 9-1981; 9-21-1992 by Ord. No. 10-1992; 11-10-1998 by Ord. No. 24-1998; 3-3-2020 by Ord. No. 1-2020]
A. Required guarantees; surety.
(1) Before recording of final subdivision plats or deeds and/or as a
condition to the issuance of a zoning permit, the applicant shall
have installed all required improvements; provided, however, that
the Township may require and shall accept performance and maintenance
guarantees for the purpose of assuring the installation and maintenance
of certain on tract improvements. Such performance and maintenance
guarantees shall be in accordance with the provisions of this section.
(2) In accordance with N.J.S.A. 40:55D-53.4, for the purpose of assuring
the installation and maintenance of bondable land development improvements,
as a condition of all final site plan, subdivision, and/or zoning
permit approvals, the Board or Zoning Officer, as appropriate, shall
require, and the Township Council shall accept the following guarantees:
(a)
Performance guarantees.
[1]
The furnishing of 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 for the following improvements as shown
on the approved plans or plat: streets, pavement, gutters, curbs,
sidewalks, streetlighting, street trees, surveyor's monuments,
as shown on the final map; water mains, sanitary sewers, community
septic systems, drainage structures, public improvements of open space,
and any grading necessitated by the preceding improvements. The performance
guarantee shall also cover the cost for privately owned perimeter
buffer landscaping in an approved phase or section of a development,
either as a separate guarantee or as a line item of the performance
guarantee.
[2]
The cost of the improvements covered by the performance guarantee
shall be determined by the Township Engineer.
[3]
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.
[4]
Such performance guaranty shall run for a period to be fixed
by the Land Development Board, but in no case for a term of more than
three years. However, the time allowed for installation of the bonded
improvements for which the performance guaranty has been provided
may be extended by the governing body by resolution. As a condition
or 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 120% of the cost of the installation as determined by the
developer and approved by the Municipal 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.
[5]
In the event that a successor developer to the original developer
becomes responsible for completion of the required improvements, the
successor developer shall furnish a replacement performance guarantee.
[a] Except as otherwise provided by an ordinance requiring
a successor developer to furnish a replacement performance guarantee,
the Township Council or approving authority shall not accept a replacement
performance guarantee without securing:
[i] 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
[ii] Written verification from the Township Engineer
that the preplacement 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 Section 41 of P.L. 1975, c. 291 (N.J.S.A.
40:55D-53).
(b)
Maintenance guarantee.
[1]
In accordance with N.J.S.A. 40:55D-53.4, developer shall post
with the municipality 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
by the Municipal Engineer.
[2]
The maintenance guarantee shall be furnished upon the inspection
and issuance of final approval of the applicable private site improvements
by the Municipal Engineer.
[3]
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.
(c)
Temporary certificate of occupancy guarantee.
[1]
Pursuant to N.J.S.A. 40:55D-53(1)(c), a developer shall furnish
a temporary certificate of occupancy guarantee ("TCOG") whenever the
developer seeks a temporary certificate of occupancy for a development,
unit, lot, building, or phase of development. The TCOG shall be furnished
in favor of the municipality in an amount equal to 120% of the cost
of installation of any improvements which: 1) remain to be completed
or installed under the terms of the temporary certificate of occupancy;
2) are required to be completed or installed as a condition precedent
to the issuance of a permanent certificate of occupancy; and 3) are
not covered by an existing performance guarantee.
[2]
The scope and amount of the TCOG shall be determined by the
Municipal Engineer.
[3]
The TCOG shall be released upon the issuance of a permanent
certificate of occupancy.
(d)
Safety and stabilization guarantee.
[1]
Pursuant to N.J.S.A. 40:55D-53(1)(d), a developer shall furnish
a safety and stabilization guarantee ("SSG") in favor of the municipality,
either as a separate guarantee or as a line item of the performance
guarantee.
[2]
The amount of the SSG for a development with bonded improvements
in an amount not exceeding $100,000 shall be $5,000. The amount of
the SSG 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: $5,000 for
the first $100,000 of bonded improvement costs, plus 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.
[3]
The municipality shall release a separate SSG to a developer
upon the developer's furnishing of a performance guarantee which
includes a line item for safety and stabilization in the amount required
pursuant to this chapter.
[4]
An SSG shall be available to the municipality for the purposes
of returning property that has been disturbed to a safe and stable
condition, or taking other measures to protect the public from access
to an unsafe or unstable condition. An SSG shall only be available
to the municipality when:
[a] 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
[b] Work has not recommenced within 30 days following
the provision of written notice by the municipality to the developer
of the municipality's intent to claim payment under the guarantee.
A municipality shall not provide notice of its intent to claim payment
under a SSG 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.
[5]
The municipality shall release a SSG upon the Municipal 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.
(e)
Form of guarantee: At least 10% of the performance guarantee
shall be in the form of cash or a certified check made payable to
the Township of Westampton. The balance of the performance guarantee
shall be in the form of any security issued by an institution authorized
to issue such securities in the State of New Jersey and which may
be accepted by the Township and approved by the Township Attorney,
including but not limited to surety bonds, cash and letters of credit;
provided that the Township shall only accept an irrevocable letter
of credit if it:
[1]
Constitutes an unconditional payment obligation of the issuer
running solely to the Township for an express initial period of time
in the amount determined pursuant to this chapter;
[2]
Is issued by a banking or savings institution authorized to
do and doing business in the State of New Jersey;
[3]
Is for a period of at least one year; and
[4]
Permits the Township to draw upon the letter of credit if the
obligor fails to furnish another letter of credit which complies with
the provisions of this section 30 days or more in advance of the expiration
date of the letter of credit or such longer period in advance thereof
as is stated in the letter of credit.
B. Other governmental agencies. In the event that other governmental
agencies or public utilities will automatically 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.
C. Failure to perform; municipal completion. If the required 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, N.J.S.A. 40A:11-1
et seq.
D. Conformance with municipal standards. All improvements shall be in
accordance with the design standards of the Township Code or as authorized
by a design exception granted by the reviewing board and shall be
subject to inspection and approval by the Municipal Engineer. The
Municipal Engineer shall be notified 24 hours prior to the start of
the various phases of the work, and if discontinued, shall again be
notified when the work will be continued.
E. Release or reduction of performance guarantee.
(1) Upon substantial completion of all required improvements, 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 this
chapter, a list of all uncompleted or unsatisfactorily 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 improvements
have been completed and which improvements remain uncompleted in the
judgment of the obligor. Thereupon the Township Engineer shall inspect
all improvements covered by the obligor's request and shall file
a detailed list and report, in writing, with the Township Council,
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 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 Municipal Engineer
and appended to the performance guarantee pursuant to this chapter.
(3) The Township Council, by resolution, shall either accept the improvements
determined to be complete and satisfactory by the Township 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 or release 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 this chapter. 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 Township Council, the obligor shall be released from all liability
pursuant to its performance guarantee, with respect to those accepted
improvements, except for that portion sufficient to secure completion
or correction of the improvements not yet accepted; provided that
30% of the amount of the performance guarantee posted may be retained
to ensure completion and acceptability of all improvements. If any
portion of the required improvements is rejected, the Township shall
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.
F. Inspection fees.
(1) The obligor shall reimburse the Township for all reasonable inspection
fees paid to the Township Engineer for the foregoing inspection of
improvements; provided that the municipality may require of the developer
a deposit for the inspection fees in an amount not to exceed, except
for extraordinary circumstances, the greater of $500 or 5% of the
cost of improvements, which cost shall be determined pursuant to N.J.S.A.
40:55D-53.4.
(2) If the Township determines that the amount in escrow for the payment
of inspection fees is insufficient to cover the cost of additional
required inspections, the Township may require the developer to deposit
additional funds in escrow provided that the Township delivers to
the developer a written inspection escrow deposit request 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.
G. Phasing in sections. In the event that final approval is by stages
or sections of development pursuant to Subsection a of Section 29
of P.L. 1975, c. 291 (N.J.S.A. 40:55D-38), the provisions of this
section shall be applied by stage or section.
H. Dedication and acceptance. To the extent that any of the improvements
have been dedicated to the Township on the subdivision plat, site
plan and/or zoning permit, the municipality shall be deemed, upon
the release of any performance guarantee required hereunder, to accept
dedication for public use any improvements made thereunder, provided
that such improvements have been inspected and have received final
approval by the Township Engineer.
I. Installation of improvements and maintenance or performance guaranty required. No final plat shall be approved by the approving authority until all items required to be bonded (on-site, off-site, on-tract and off-tract) in the public interest have been installed, inspected, certified and approved by the Township Engineer and accepted by the governing body and a maintenance guaranty has been filed and accepted by the governing body in accordance with the requirements of this Code at §
215-15.
[Added 9-18-1962; amended 2-28-1974 by Ord. No. 2-1974]
The subdivider shall not commence any construction
work until there is first deposited by him with the Township Treasurer
a sum estimated by the Township Engineer to be sufficient to cover
total engineering fees for supervision, inspection and approval of
all improvements to be installed in the subdivision. The amount of
said sum shall be approved by the Township Committee after the Engineer's
estimate has been received. This sum shall be held in escrow by the
Township Treasurer, who shall use said sum to pay the Township Engineer
for his engineering services. The Engineer shall be paid not more
often than monthly on vouchers presented by him and first approved
by the Township Committee. If the total amount paid the Township Engineer
is less than the escrow amount, the excess shall be returned to the
subdivider. The subdivider shall furnish the Township Engineer, on
his request, with copies of plans and profiles of all new streets
and utility layouts.
[Added 9-18-1962]
No building permit for the erection of a building
on a lot fronting or abutting on a new street in a major subdivision
shall be issued unless and until the following requirements have been
satisfied:
A. The final plat of the subdivision shall have been
filed with the Clerk of Burlington County.
B. The subdivider shall have filed with the Township
Clerk/Administrator an adequate guaranty to maintain said new street
or streets for a period of two years after the acceptance by the township,
the amount thereof to be approved by the Township Committee on advice
of the Township Engineer and the form thereof to be approved by the
Township Attorney.
[Amended 9-21-1992 by Ord. No. 10-1992]
C. The subdivider shall have filed with the Township
Clerk/Administrator an adequate guaranty to repair and replace all
sewer mains and laterals for a period of two years after acceptance
by the township of any new street in which they are situate or from
which they extend, the amount thereof to be approved by the Township
Committee on advice of the Township Engineer and the form thereof
to be approved by the Township Attorney.
[Amended 9-21-1992 by Ord. No. 10-1992]