Before recording of final subdivision plat or as a condition of final site plan approval or as a condition to the issuance of a zoning permit pursuant to subsection N.J.S.A. 40:55D-65d, the Planning Board may require and shall accept in accordance with the standards adopted by this chapter for the purpose of assuring the installation and maintenance of on-tract and off-tract improvements:
A.
The furnishing of a performance guaranty in favor of the Township in an amount not to exceed 120% of the cost of installation which cost shall be determined by the Township Engineer according to the method of calculation set forth in Section 15 of P.L. 1991, Chapter 256 (N.J.S.A. 40:55D-53.4), for improvements which the Planning Board may deem necessary or appropriate, including streets, grading, pavement, gutters, curbs, sidewalks, streetlighting, shade trees, surveyor's monuments as shown on the final map and required by the Map Filing Law, P.L. 2011, c. 217 (N.J.S.A. 46:26B-1 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, open space markers, and in the case of site plans only, other on-site improvements and landscaping. The Township Engineer shall prepare an itemized cost estimate of the improvements covered by the performance guaranty, which itemized cost estimate shall be appended to each performance guaranty posted by the obligor.
B.
The furnishing of a maintenance guaranty to be posted with the Township Council 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, which cost shall be determined by the Township Engineer according to the method of calculation set forth in Section 15 of P.L. 1991, Chapter 256 (N.J.S.A. 40:55D-53.4). In the event that other governmental agencies or public utilities automatically will own the utilities to be installed or the improvements are covered by performance or maintenance guaranty to another governmental agency, no performance or maintenance guaranty, as the case may be, shall be required by the Township for such utilities or improvements.
C.
The time allowed for installation of the improvements for which the performance guaranty has been provided may be extended by the Township Council by resolution. As a condition or as 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 which cost shall be determined by the Township Engineer according to the method of calculation set forth in Section 15 of P.L. 1991 Chapter 256 (N.J.S.A. 40:55D-53.4) as of the time of the passage of the resolution.
D.
If the required improvements are not completed or corrected in accordance with the performance guaranty, 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 not be subject to the public bidding requirements of the Local Public Contracts Law, P.L. 1971, c. 198 (N.J.S.A. 40A:11-1 et seq.) as long as no public monies are expended for the completion or correction.
E.
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 Township Council 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 guaranty pursuant to § 112-194A of 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.
F.
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 guaranty relating to the completed and satisfactory improvement. In accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guaranty pursuant to § 112-194A of this chapter.
G.
The Township Council, by resolution, shall either approve 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 to be made in the performance guaranty relating to the improvements accepted, in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guaranty pursuant to § 112-194A of 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 guaranty, 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 performance guaranty posted may be retained to ensure completion and acceptability of all improvements.
H.
If the Township Engineer fails to send or provide the list and report as requested by the obligor pursuant to § 112-194E of this chapter within 45 days from receipt of the request, the obligor may apply to the court in a summary manner for an order compelling the Township Engineer to provide the list and report within a stated time and the cost of applying to the court, including reasonable attorney's fees, may be awarded to the prevailing party.
I.
If the Township Council fails to approve or reject the improvements determined by the Township Engineer to be complete and satisfactory or reduce the performance guaranty for the complete and satisfactory improvements within 45 days from the receipt of the Township Engineer's list and report, the obligor may apply to the court in a summary manner for an order compelling, within a stated time, approval of the complete and satisfactory improvements and approval of a reduction in the performance guaranty for the approvable complete and satisfactory improvements in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guaranty pursuant to § 112-194A of this chapter; and the cost of applying to the court, including reasonable attorney's fees, may be awarded to the prevailing party.
J.
In the event that the obligor has made a cash deposit with the Township or Planning Board as part of the performance guaranty, then any partial reduction granted in the performance guaranty pursuant to this section shall be applied to the cash deposit in the same proportion as the original cash deposit bears to the full amount of the performance guaranty.
K.
If any portion of the required improvements is rejected, the Township Council 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.
L.
Nothing herein, however, shall be construed to limit the right of the obligor to contest by legal proceedings any determination of the Township Council or the Township Engineer.
M.
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 Township 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 Section 15 of P.L. 1991, c. 256 (N.J.S.A. 40:55D-53.4).
N.
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.
O.
The Township shall not require that a maintenance guaranty required pursuant to Section 41 of P.L. 1975, c. 291 (N.J.S.A. 40:55D-53) be in cash or that more than 10% of a performance guaranty pursuant to that section be in cash. A developer may, however, provide at their option some or all of a maintenance guaranty in cash, or more than 10% of a performance guaranty in cash.
P.
The cost of the installation of improvements for the purposes of Section 41 of P.L. 1975, c. 291 (N.J.S.A. 40:55D-53) shall be estimated by the Township Engineer based on documented construction costs for public improvements prevailing in the general area of the Township. The developer may appeal the Township Engineer's estimate to the Township Council. The Township Council shall decide the appeal within 45 days of receipt of the appeal in writing by the Township Clerk. After the developer posts a guaranty with the Township based on the cost of the installation of improvements as determined by the Township Council, they may institute legal action within one year of the posting in order to preserve the right to a judicial determination as to the fairness and reasonableness of the amount of the guaranty.
Q.
The Township Council shall, for the purposes of Section 41 of P.L. 1975, c. 291 (N.J.S.A. 40:55D-53), accept a performance guaranty or maintenance guaranty which is 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 Section 41 of P.L. 1975, c. 291 (N.J.S.A. 40:55D-53);
(2)
Is issued by a banking or savings institution authorized to do and doing business in this state;
(3)
Is for a period of time of at least one year; and
(4)
Consistent with the furnishing of an irrevocable letter of credit, there shall be provided by the obligor, an irrevocable letter of credit in the form set forth in Appendix B.[1] Obligor must use the preprinted form which is available from the Township Engineering Department. The Township Attorney may revise the preprinted form from time to time, but such revisions may not alter the substance of such form unless authorized by an ordinance implementing the revision.
[1]
Editor's Note: Said appendix is included as an attachment to this chapter.
R.
If the Planning Board includes as a condition of approval of an application for development pursuant to P.L. 1975, c. 291 (N.J.S.A. 40:55D-1 et seq.) the installation of streetlighting on a dedicated public street connected to a public utility, then upon notification in writing by the developer to the Planning Board and Township Council that 1) the streetlighting on a dedicated public street has been installed and accepted for service by the public utility and 2) that certificates of occupancy have been issued for at least 50% of the dwelling units and 50% of the floor area of the nonresidential uses on the dedicated public street or portion thereof indicated by section pursuant to Section 29 of P.L. 1975, c. 291 (N.J.S.A. 40:55D-38), the Township shall, within 30 days following receipt of the notification, make appropriate arrangements with the public utility for, and assume the payment of, the costs of the streetlighting on the dedicated public street on a continuing basis. Compliance by the Township with the provisions of this section shall not be deemed to constitute acceptance of the street by the Township.