Prior to the signing of a final plat, issuance of a Development Permit,
and/or the commencing of any clearing, grading or installation of
improvements, the developer shall have filed with the Borough a performance
guarantee sufficient in amount to equal the total cost to the Borough,
as estimated by the Borough Engineer, of constructing those on-site,
off-site and off-tract improvements necessary to protect adjacent
property and the public interest in the event development of the subdivision
or site were not completed. Such improvements shall include, but are
not limited to streets, grading, pavement, gutters, curbs, sidewalks,
street lighting, shade trees, surveyor's monuments, water mains, culverts,
storm sewer, drainage structures, erosion control and sediment control
devices, public improvements of open space and in the case of site
plans, other onsite improvements and landscaping. Such guarantee shall
assure the installation of such improvements on or before an agreed
date, guarantee the completion of all improvements without damage
to or interference with adjacent properties or public facilities,
and hold the Borough Council and the Planning Board and their employees
and agents harmless with respect to any acts of the developer, if
agents, successors or assigns. The total estimated cost to the Borough
of constructing all improvements shall be based upon the estimated
contract construction costs, which would prevail upon expiration of
the guarantee period, and shall also include appropriate allowances
for contract related costs such as engineering, legal, financial and
other usual costs, which shall be estimated to be 120% of the estimated
contract construction costs. Such performance guarantee may be in
the form of cash, certified check, negotiable securities, a performance
bond issued by a bonding company or surety company approved by the
Borough Council, or any other type of surety acceptable to and approved
by the Borough Attorney and Borough Council, provided that at least
10% of the performance guarantee shall be in the form of cash, certified
check, or savings passbook or certificate of deposit drawn on an insured
banking institution in the State of New Jersey; provided, however,
that all rights, including the right to interest with dividends, be
assigned to the Borough in a form of assignment acceptable to the
Borough Attorney for the period of the bond and that the principal
amount of the passbook or certificate of deposit, together with interest,
be returned to the developer upon completion of the bonded improvements,
or in the event of default, both interest and principal shall be used
by and for the benefit of the Borough in the completion of said improvements.