Before recording final subdivision plats, the approving authority shall require that the applicant shall have installed or have furnished performance guaranties for the installation of on-tract improvements in accordance with municipal specifications for streets, street signs, grading, pavement, curbs, gutters, sidewalks, walkways, streetlighting, shade trees, water mains, fire hydrants, culverts, storm sewers, sanitary sewers, drainage structures, erosion and sedimentation control devices, public improvements of open space and surveyor's monuments as required by the Map Filing Law (N.J.S.A. 46:23-9.9 et seq.).
All such required improvements shall be certified by the Borough Engineer to be installed pursuant to municipal specifications, unless the applicant shall have filed a performance guaranty sufficient in amount to cover the cost of all such improvements or uncompleted portions thereof as estimated by the Borough Engineer.
The performance guaranties shall be furnished in favor of the municipality in an amount equal to 120% of the cost of the installation of improvements it may deem necessary or appropriate as specified in § 250-31 of this chapter.
Upon substantial completion of all required appurtenant utility improvements and the connection of same to the public system, the obligor may notify the governing body, in writing, by certified mail addressed in care of the Borough Clerk, of the completion or substantial completion of improvements and shall send a copy thereof to the Borough Engineer. Thereupon, the Borough Engineer shall inspect all improvements of which such notice has been given and shall file a detailed report, in writing, with the governing body, indicating either approval, partial approval or rejection of such improvements, with a statement of reasons for any rejection. The cost of the improvements as approved or rejected shall be set forth.
The governing body shall either approve, partially approve or reject the improvements, on the basis of the report of the Borough Engineer, and shall notify the obligor, in writing, by certified mail, of the contents of said report and the action of the approving authority with relation thereto, not later than 65 days after receipt of the notice from the obligor of the completion of the improvements. Where partial approval is granted, the obligor shall be released from all liability pursuant to its performance guaranty, except for that portion adequately sufficient to secure provision of the improvements not yet improved, provided that thirty percent (30%) of the amount of the performance guaranty posted may be retained to ensure completion of all improvements.
Failure of the governing body to send or provide such notification to the obligor within 65 days shall be deemed to constitute approval of the improvements, and the obligor and surety, if any, shall be released from all liability pursuant to such performance guaranty for such improvements.
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 municipality for the reasonable cost of improvements not completed or corrected, and the municipality may complete such improvements prior to or after receipt of the proceeds of the performance guaranty. If any portion of the required improvements are rejected, the approving authority may require the obligor to complete such improvements, and, upon completion, the same procedure of notification as set forth in this section shall be followed. Nothing herein, however, shall be construed to limit the right of the obligor to contest by legal proceedings any determination of the Borough Engineer or the governing body.
The obligor shall reimburse the municipality for all reasonable inspection fees paid to the Borough Engineer for the foregoing inspections of improvements, provided that the municipality may require of the developer a deposit for all or a portion of the reasonable anticipated fees to be paid to the Borough Engineer for such inspections.
In the event that final approval is by stages or sections of development pursuant to N.J.S.A. 40:55D-38, the provisions of this section shall be applied by stage or section.
The performance guaranties shall be approved by the governing body as to form, sufficiency and execution, and such performance guaranties shall run for a period to be fixed by the approving authority. However, with the consent of the obligor and surety, if there is one, the governing body may, by resolution, extend the term of such performance guaranties for an additional period not to exceed one year.
Prior to the acceptance of any on-site improvements, a maintenance guaranty shall be furnished in favor of the municipality 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 will own the utilities or improvements to be installed in the subdivision and are covered by a performance or maintenance guaranty to another governmental agency or public utility, no performance or maintenance guaranty, as the case may be, shall be required by the municipality for such utilities or improvements.