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§ 348-7.1. Performance guaranty.
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A.Requirements; form rights. [Amended 7-25-1978 by Ord. No. 1770; 6-24-1986 by
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Ord. No. 2417-86] | |||||||
(1) Prior to the signing of a final plat, issuance of a development permit and/or the commencement of any clearing, grading or installation of improvements, the developer shall have filed with the Township a performance guaranty sufficient in amount to equal the total cost to the Township, as estimated by the Township Engineer, of constructing those on-site, off-site and off-tract improvements necessary to protect adjacent property and the public interest, in the event that the development of the subdivision or site was not completed. Such improvements shall include but are not limited to drainage facilities necessary to protect off-tract areas from flooding, erosion control facilities, required screening and fencing, all improvements within public rights-of-way and easements and the costs of seeding or otherwise stabilizing the site or the subdivision. Such guaranty shall assure the installation of such improvements on or before an agreed date, guaranteed completion of all improvements without damage to or interference with adjacent properties or public facilities and hold the Township Committee and the Township Planning Board and their employees and agents harmless with respect to any acts of the developer, its agents, successors or assigns. Total estimated cost to the Township of constructing all improvements shall be based upon the documented constructed costs for public improvements, which would prevail upon expiration of the guaranty period in the general area of the Township, it shall also include appropriate allowances for contract related costs, such as engineering, legal, financial and other usual costs, which shall be estimated to be 20% of the estimated construction costs. Such performance guaranty may be in the form of cash, certified check, negotiable securities, performance bond issued by a bonding company or surety company approved by the Township Committee and an irrevocable letter of credit of which acceptance is subject to compliance with § 348-7.1A(6) below, or any other type of surety acceptable to and approved by the Township Attorney and Township Committee; provided, however, that not less than 10% of the performance guaranty shall be in cash or certified check. The balance of said performance guaranty shall be in the form of cash, certified check, certificate of deposit, a bond issued by a surety or bonding company authorized to do business in New Jersey or an irrevocable letter of credit issued by a banking or savings institution authorized to do and doing business in the State of New Jersey; provided, however, that all rights, including the right to interest with dividends, be assigned to the Township of Dover in a form of assignment acceptable to the Township Attorney for the period of the guaranty and that the principal amount of the passbook or certificate of deposit, together with interest, be returned to the developer upon completion of the bond and improvements, or in the event of default, both interest and principal shall be used by and for the benefit of the Township in completion of said improvements. [Amended 5-24-1988 by Ord. No. 2577-88; 5 13-1992 by Ord. No. 2911-92]
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(2) The form of the performance guaranty is subject to the approval of the Township Legal Department.
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(3) Subject to N.J.S.A. 40:55D-1 et seq., as amended and supplemented, all rights in the performance guaranty, including the right to any interest earned on any deposits, shall belong to the Township of Dover.
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(4) Notwithstanding the requirements of Subsection A(l) and (6), when a letter of credit which has been previously accepted as a performance guaranty is about to expire, it may either be renewed administratively by the Township Comptroller, provided that all pertinent requirements are met by the applicant, or may be drawn upon by the Township if the obligor fails to furnish a new letter of credit which complies with the provisions of this chapter not less than 30 days in advance of the expiration date of the letter of credit or such longer period of time in advance thereof as is stated in the letter of credit. [Amended 8-25-1987 by Ord. No. 2517-87; 5-13-1992 by Ord. No. 2911-92]
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(5) In the event of default, the principal and any interest shall be used for the benefit of the Township in the completion of the improvements.
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(6) Irrevocable letters of credit. The Township of Dover shall accept as a performance or maintenance guaranty an irrevocable letter of credit if it constitutes an unconditional payment obligation of the issuer running solely to the municipality for an expressed initial period of time in the amount required pursuant to | |||||||
(7) Appeal of performance bond estimate. The cost of installation of improvements for purposes of this section shall be estimated by the Municipal Engineer based upon documented construction costs for public improvements prevailing in the general area of Dover Township. The developer may appeal this estimate to the governing body and the governing body shall decide such appeal within 45 days of the receipt of the appeal, in writing, by the Municipal Clerk. In the event that a developer posts a guaranty with a municipality based upon the cost of installation of improvements as determined by the governing body, he shall institute legal action within one year of such posting or order to preserve the right to a judicial determination as to fairness and reasonableness of such guaranties. [Added 5-13-1992 by Ord. No. 2911-92]
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B. If, at the time the performance guaranty is filed with the Township, the developer has not also filed with the Township proof that any other necessary performance guaranties have been filed and accepted by governmental bodies, authorities, public utility companies and private utility companies other than the Township, which have jurisdiction over improvements in the site or subdivision, the amount of the performance guaranty shall be increased to reflect the cost of such improvements.
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C. All performance guaranties shall run to and be in favor of the Township of Dover in the County of Ocean.
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D. The performance guaranty shall be approved by the Township Attorney as to form, sufficiency and execution. Such performance guaranty shall run for a period to be fixed by the Township Committee, but in no case for a term of more than two years. However, with the consent of the owner and the surety, if there is one, the Township Committee may, by resolution, extend the term of such performance guaranty for an additional period not to exceed one year. The amount of the performance guaranty may be revised by the Township Committee from time to time to reflect work progress, increasing costs and changing conditions in regard to the uncompleted or unacceptable portions of the required improvement. If the required improvements have not been installed in accordance with the performance guaranty, the obligor and surety shall be liable thereon, al the option of the municipality for:
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(1) The reasonable cost of the improvements not installed, and, upon receipt of the proceeds thereof, the municipality shall install such improvements; or
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(2) The completion of all required improvements.
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E. If, during the period of the performance guaranty, the developer fails to prosecute the work of completing the improvements so as to create hazards to life, health, property or public safely, the Township may, after five days' notice, perform or cause to be performed any necessary corrective work and deduct the cost thereof from the ten-percent-cash-or-certified check portion of the guaranty. Upon notice of any such deduction, the subdivider shall, within 10 days, restore the full ten-percent-cash balance, or his performance guaranty will be held to be void, and the Township may take action as if final plat approval had not been obtained.
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F. Engineer's report on release/reduction of performance guaranties. [Amended 5-13-1992 by Ord. No. 2911-92]
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(1) Upon substantial completion of all required street improvements and the appurtenant utility improvements, and the connection of the same to the public system, the obligor may request of the Township Committee, in writing, by certified mail addressed in care of the Township Clerk, that the Municipal Engineer, in accordance with the estimate appended to the performance guaranty posted, prepare a list of all uncompleted or unsatisfactorily completed improvements and shall send a copy of such notice to the Municipal Engineer. The request shall indicate which improvements have been completed and which improvements remain incomplete in the judgment of the obligor. Thereupon, the Municipal Engineer shall inspect all improvements covered by the obligor's request and shall file a detailed list and report, in writing, with the Township Committee 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 Municipal Engineer shall state, in detail, in 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 and remedy for the unsatisfactory state of each completed improvement determined to be unsatisfactory. The report by the Municipal Engineer shall identify each improvement determined to be complete and satisfactory, together with a recommendation as to the amount of any reduction to be made in the performance guaranty relating to the complete and satisfactory improvements.
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(2) If the Township Engineer fails to send or provide such list or report as requested by obligor hereunder within 45 days from the receipt of such request, the obligor may apply to the Superior Court in a summary manner for an order compelling the Municipal Engineer to provide the list or report within a stated time and the cost of the application, including reasonable attorney's fees, may be awarded to the prevailing party.
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G. Township Committee action on release/reduction of performance guaranties. [Amended 5-13-1)92 by Ord. No. 2911-92]
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(1) The Township Committee, by resolution, shall either approve the improvements determined to be complete and satisfactory by the Township Engineer or reject any or all of the improvements upon the establishment in the resolution of cause for such 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 estimate appended to the performance guaranty posted. Such resolution shall be adopted not less than 45 days after the receipt of the list or report prepared by the Township Engineer. Upon adoption of the resolution by the governing body, the obligor shall be released from all liability pursuant to its performance guaranty in 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 shall be retained to insure completion and acceptability of all improvements.
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(2) If the governing body fails to approve or reject the improvements determined by the Municipal Engineer to be complete and satisfactory or to reduce the performance guaranty for the satisfactorily completed improvements within 45 days from the receipt of the Township Engineer's list or report, the obligor may apply to Superior Court in a summary manner for an order compelling within a stated time approval of the satisfactorily completed improvements and an approval of a reduction of the performance guaranty for said approval and improvements in accordance with the Municipal Engineer's bond estimate appended to such performance guaranties and the cost of application, including reasonable attorney's fees, may be awarded to the prevailing party.
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H. If any portion of the required improvements are rejected, the Township Committee 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. [Amended 5-13-1992 by Ord. No. 2911-92]
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1. Nothing herein, however, shall be construed to limit the right of the obligor to contest by legal proceedings any determination of the Township Committee or the Township Engineer. | |||||||
§ 348-7.2. Approval of performance guaranties.
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A. Duties of Township. Engineer, Township Attorney and Township Clerk. No performance guaranties shall be presented for approval of the Township Committee until the municipal officials listed below have performed the following and make certification of their performance, in writing, to the Township Committee.
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(a) Where applicable, examine the plat map of a subdivision to make certain that it complies with all state laws and this chapter relative to the preparation and filing of maps or plans for the subdivision of land.
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(b) Ascertain that the plat of a site plan or subdivision has been approved by the Ocean County and Dover Township planning Boards.
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(c) Determine those acts or things the applicant is to do to protect Dover Township, such as to provide proper drainage, streets, curbs, signs, monuments or any other item or thing and the cost of each, as well as the maximum tithe he recommends granting the applicant to provide each item or all items.
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(d) Determine if the landowner is an individual, corporation or partnership and, if an individual, his full name and address; if a corporation, its correct name, date and state of incorporation, the name of its president and secretary and location of its principal office in this state; if a partnership, the names and addresses of all partners.
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(e) Give the applicant a form of the surety company bond required by the Township of Dover and all figures, dates and details required by Subsection A(1)(c) above so that same may be included in the bond to be furnished to the Township and, also, advise the applicant of the amount required to pay the Township as a proper inspection, testing and administration fee.
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(f) Deliver to the Township Attorney:
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[1] The original copy of the surety company bond of the applicant.
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[2] The Township Engineer's written certificate addressed to tile Township Committee, which certificate and bond shall be delivered at one and the same time.
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(g) The Township Engineer's certificate shall also state and give the nature of cash, or its equivalent, deposited as a portion or all of the performance guaranty (i.e., cash, certified check, cash escrow deposit or other security).
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(h) If there is nothing the applicant needs to do under Subsection A(1)(c) above, the certificate shall so state and give the reason therefor.
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(2) Township Attorney. Upon the receipt from the Township Engineer of the surety bond and Engineer's certificate, the Township Attorney shall promptly examine said bond and determine whether or not it is correct in form, content and execution. If the bond is not correct, the Township Attorney shall notify the applicant of its shortcomings. When the bond is or has been correct, the Township Attorney shall make a written certificate to that effect to the Township Committee. Thereupon said Attorney shall deliver the bond and Engineer's and Attorney's certificates to the Township Clerk.
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(3) Township Clerk. Upon the receipt from the Township Attorney of the bond and certificates of the Engineer and Attorney, the Township Clerk shall:
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(a) Collect from the applicant the proper fee or fees, if any, payable to the Township in accordance with the Engineer's certificate.
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(b) Place the matter of approval of bond(s) on the agenda of the next regular meeting of the Township Committee for its consideration.
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(c) Submit the bond, certificate and fees to the Township Committee at the next regular meeting of said Committee.
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B. Certificates; form, dating. Each of said certificates shall be dated and written in letter form upon the stationery of the maker or of the Township and shall be signed by him or his authorized agent or representative.
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C. Requirements for performance bonds and letters of credit. [Amended 5-13-1992 by Ord. No. 2911-92]
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(1) Performance bond requirements. There must be attached to said bond an authority of the surety company empowering the person or persons who executed said bond for the surety company to do so. If the bonding company is not a New Jersey corporation, there should also be attached to the bond proof of its authority to do business in New Jersey and a copy of its last financial statement, made not more than one year before, showing its financial conditions. If the principal on the bond is a corporation, there must be attached to the band a certified copy of a resolution adopted by its Board of Directors authorizing the execution and delivery of said bond. Said bond must also bear the corporate seal of the surety company and the seal, corporate or otherwise, of the principal.
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(2) Letter of credit requirements. If the bank or savings institution is not a New Jersey corporation, there must also be attached to the letter of credit, proof of its authority to do business in New Jersey and proof of its operation within the State of New Jersey and a copy of its last financial statement, made not more than one year before, showing its financial conditions. If the principal on the letter of credit is a corporation, there must be attached to the letter of credit a certified copy of the resolution adopted by the Board of Directors authorizing the execution and delivery of said letter of credit.
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D. Copies. The Township Clerk shall keep a supply of copies of these bond requirements in his office for the use of applicants and the general public.
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§348-7.2.1. Accelerated approval procedure. [Added 9- 11-1979 by Ord. No. 1868]
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The Township Engineer may, if the applicant shall so elect, notify the applicant that he and the Township Attorney have completed all steps required pursuant to | |||||||
§ 348-7.3. Off-tract improvements.
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A. General requirements. Where the Planning Board cleterniines that off-tract improvements are necessary for the proper development and utilization of the proposed site or subdivision and the surrounding area, it may require either that such off-tract improvements be installed or that the developer contribute to the installation of such off-tract improvements. Where the Planning Board has determined that off-tract improvements are required, it shall be a condition of the granting of final approval that such improvements be constructed or that the developer shall make payments toward the ultimate installation of off-tract improvements, such as but not limited to streets, curbs and gutters, sidewalks, water mains, sanitary sewers, storm sewers and culverts, monuments and streetlights, all in accordance with the specifications governing on-tract improvements.
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B. Cost allocation. If the Planning Board determines that the developer may contribute toward required off-tract improvements in lieu of such improvements being installed, the Planning Board shall allocate the cost of said off-tract improvements in accordance with the standards hereinafter set forth. The improvement of a stream and/or widening of, or the construction of drainage or other improvements in, a street or road fronting on the tract to be subdivided and/or developed shall not constitute an off-tract. improvement, and the cost of said improvement shall not be allocated.
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(I) The allocation of the cost of off-tract improvements shall be determined in accordance with the following: | |||||||
(a) The Planning Board may consider the total cost of the off-tract improvements, the benefits conferred upon the site or subdivision, the needs created by the site or subdivision, population and land use projects for the general areas of the site or subdivision and other areas to be served by the off-tract improvements, the estimated times of construction of off-tract improvements and the condition and periods of usefulness, which periods may be based upon the criteria of N.J.S.A. 40A:2-22. The Planning Board may further consider the criteria set forth below.
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(b) Road, curb, gutter and sidewalk improvements may be based upon the anticipated increase of traffic generated by the site or subdivision. In determining such traffic increase, the Planning Board may consider traffic counts, existing and projected traffic patterns, quality of roads and sidewalks in the area and the other factors related to the need created by the site or subdivision and anticipated thereto.
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(c) Drainage facilities may be based upon the percentage relationship between the site or subdivision acreage and the acreage of the total drainage basins involved or upon calculations developing the percentage contribution that the storm runoff from a particular site or subdivision bears to the total design capacity of any improvement. The particular methods shall be selected in each instance by the Planning Board Engineer.
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(d) Sewage facilities shall be based upon a proportion as determined by the current rules and regulations of the Dover Sewerage Authority.
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(e) Water supply and distribution facilities may be based upon the current rules and regulations governing the particular utility supplying water service.
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(2) All moneys received by the municipality in accordance with the provisions of this section shall be paid to the Municipal Treasurer, who shall provide for a suitable depository therefor. Such funds shall be used only for the improvements for which they are deposited or improvements serving the same purposes unless such improvements are not initiated for a period of five years From the date of payment, after which time said funds shall be transferred to the capital improvement fund of the municipality.
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(3) The apportionment of costs shall be determined by the Planning Board. The developer shall be afforded an opportunity before said Board to present evidence relative thereto.
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C. Assessment not precluded. Nothing in this section of the chapter shall preclude the municipality from assessing any property benefiting from installation of any off-tract improvements as provided in this section pursuant to the provisions of the Revised Statutes of New Jersey, an allowance being made to the respective parcels of realty for payments herein.
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§348-7.4. Assignment of interest.
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Before any developer effectively assigns any of his interest in any preliminary or final approval, he must notify the Administrative Officer and supply detailed information with regard to the name, address, principals, type of organization, competency, experience and past performance of the assignee, transferee or agent. Notice of such assignment or transfer shall be given no later than 10 days after its effective date. The assignee must be made acquainted with all the conditions of approval, and the developer shall so certify. | |||||||