EXHIBIT A ATTACHED TO AND MADE A PART OF THAT CERTAIN IRREVOCABLE LETTER OF CREDIT ISSUED BY NAME OF BANK, DATE





112-26 IMPROVEMENTS



A. ON-TRACT IMPROVEMENTS



(1) Prior to granting of final approval of all subdivisions and site plans, the applicant shall have installed or shall have furnished performance guarantees for the ultimate installation of all on-

tract improvements including but not limited to the following:



(a) Streets, driveways, parking lots, curbing and sidewalks



(b) Street signs



(c) Utilities (water, sewer, gas, electrical, telephone, cable television)



(d) Fire hydrants



(e) Storm water management facilities



(f) Street lighting and other exterior lighting



(g) Landscaping and shade trees



(2) Provision of all improvements shall be in conformance with Township design standards.



B. OFF-TRACT IMPROVEMENTS (Amended 6/13/85 by Ordinance #1232)



(1) The Planning Board and/or the Board of Adjustment shall require, as a condition of final subdivision or site plan approval, that the developer pay his pro-rata share of the cost of providing only reasonable and necessary street improvements and water, sewerage and drainage facilities, and easements therefor, located outside the property limits of the development but necessitated or required by construction or improvements within such development. Such contribution for a developer's pro-rata share shall only be required where the off-tract improvements are to be constructed pursuant to provisions of the circulation and comprehensive utility service plans included in the Franklin Township Master Plan. The developer shall contribute his pro-rata share of the costs, except that in the case where all costs for the required improvements can be properly allocated to the developer, he may be required to install the improvement.



(2) The developer shall pay the full cost or shall be required to construct off-tract improvements that are wholly necessitated by the proposed development where said improvements do not benefit any land other than the land within the subdivision or site plan.



(3) The developer shall provide for payment of its pro-rata share, as determined in subsections 112-26B(5) and 112-26B(6) of this section of all off-tract improvements required by the Planning Board if such improvements are wholly or partially necessitated by the proposed development where said improvements benefit lands other than those within the subdivision or site plan.



(4) The developer shall deposit with the township a percentage of the total cost of the necessary improvements equal to the percent of benefit which said development will receive from the necessary improvements in relation to the total benefit resulting from the necessary improvement to all properties as developed or potentially developed.



(5) In apportioning the benefits of off-tract improvements as between the developer, and other property owners and the general public, the Planning Board shall be guided by the following factors:



(a) The increase in market values of the properties affected and any other benefits conferred;



(b) The needs created by the application;



(c) Population and land use projections for the land within the general area of the subdivision or site plan and other areas to be served by the off-tract improvements;



(d) The estimated time for construction of the off-tract improvements; and



(6) Without limiting the generality of the foregoing, the Planning Board may take into account the following specific factors:



(a) With respect to street widening, alignment, curbs, gutters, sidewalks, street lights, street signs, and traffic signalization improvements, the Planning Board may consider:



[1] Traffic counts;



[2] Existing and projected traffic patterns;



[3] Quality of roads and sidewalks in the area; and



[4] Such other factors as it may deem relevant to the needs created by the proposed development;



(b) With respect to drainage facilities, the Planning Board may consider:



[1] The relationship between the areas of the subdivision or site plan and the area of the total drainage basin of which the subdivision or site plan is a part.



[2] The proposed use of land within the subdivision or site plan and the amount of land area to be covered by impervious surfaces on the land within the subdivision or site plan; and



[3] The use, condition or land status of the remaining land area in the drainage basin.



(c) [Added 4/27/99 by Ord. No. 3037] Notwithstanding any of the provisions of Section 112-26B. to the contrary, this subsection shall govern sanitary sewerage at related improvements. In cases where off tract sewerage improvements are necessitated by the construction of improvements proposed in a subdivision or site plan application, the Township Council delegates the Franklin Township Sewerage Authority for determining the costs to be imposed upon the applicant or developer to the Township of Franklin Sewerage Franklin Township Sewerage Authority (hereinafter the "Franklin Township Sewerage Authority") in accordance with NJSA 40:55D-42. The Franklin Township Sewerage Authority shall adopt rules and regulations based upon the comprehensive sanitary sewer plans of the Franklin Township Sewerage Authority or of the Township Planning Board, adopted as part of the utility service plan element of the Master Plan, which shall include the following:



[1] The Franklin Township Sewerage Authority shall establish fair, reasonable and rational standards to determine the proportionate amount of the costs of the sewerage facilities which are to be imposed upon each developer within a related common area. Such standards shall not be altered subsequent to the time of preliminary approval. The Franklin Township Sewerage Authority shall also develop applicable rules and regulations to determine whether the improvement is to be constructed by the Franklin Township Sewerage Authority as an Franklin Township Sewerage Authority Capital Improvement, or whether the improvement is to be constructed by the developer, with or without a formula for partial reimbursement from other properties also specially benefitted by the improvement. The Franklin Township Sewerage Authority may consider, but is not limited to:



1. Flow measurements;



ii. Projected future loadings to the system;



iii. Condition of the existing sewerage facilities;



iv. Amount of infiltration and inflow in the existing system;



v. The use, condition or status of the remaining land in the sanitary sewer service area;



vi. The remaining useful capacity of the system.



(7) (a) [Amended 4/27/99 by Ord. No. 3037] Any money received by the township for off-tract improvements to be constructed or installed by the township pursuant to the provisions of this section shall be deposited in a suitable depository therefore and shall be used only for the improvements for which they are deposited or improvements satisfying the same purpose. If construction of improvements for which the township is responsible has not commenced within ten (10) years from the date of deposit, the amount deposited together with any interest thereon shall be returned to the developer or his successor in interest.



(b) [Added 4/27/99 by Ord. No. 3037] Any money received by the Franklin Township Sewerage Authority for off-tract improvements to be constructed or installed by the Franklin Township Sewerage Authority pursuant to the provisions of this section shall be deposited in a suitable depository therefor and shall be used only for the improvements for which they are deposited or improvements satisfying the same purpose. If construction of the off tract improvements within the included subsystem, or any portion thereof, has not been commenced within twenty (20) years from the date of deposit, the amount deposited, together with any interest thereon, shall, upon written request from the developer, be returned to the developer or his successor in interest.



(1) The Franklin Township Sewerage Authority shall develop rules and regulations pertaining to the disposition of any contribution paid by the developer in the event the improvements are not constructed within a given time period.



(2) If the developer pays his proportionate share of construction costs of the off tract improvement under protest or agrees to construct the off-tract improvement under protest, the developer shall be required to institute legal action within one (1) year of the earliest of the following dates in order to preserve the right to a judicial determination as to the fairness and reasonableness of the amount:



(i) the date of such payment, or



(ii) the date of the execution of the agreement imposing the requirements or



(iii) the date of commencement of construction.



**Webmaster's Note: The previous subparagraph 112-26B (5) through (7) (iii) has been amended as per supplement dated 12/31/99.



C. INSPECTION OF IMPROVEMENTS [Amended 4/27/99 by Ord. No. 3037; 6/15/00 by Ord. No. 3138]



(1) Deposits Required to Offset Costs of Inspection



A. Prior to the construction of any improvement required by virtue of a site plan or subdivision approval and specifically the commencement of any preparatory site work, including but not necessarily limited to clearance of the property, grading or excavation or the signing of the final subdivision or site plan, whichever occurs first the developer shall initially deposit with the Township a sum equal to five (5%) percent of the cost of the improvements but not more than four thousand, nine hundred and ninety-nine dollars ($4,999.00), which shall be used to pay the costs of inspection incurred by the Township. In the event that the cost of inspections are less than the amount deposited, the balance shall be refunded to the developer. If the costs are greater than the amount deposited, the Township shall require additional deposits as necessary in accordance with part B. The fees to be charged shall be in accordance with the following schedule.



(1) Township Employees



(a) Inspector -$50.00 per hour, week days from 7:30 am to 3:30 pm



(b) Inspector -$75.00 per hour for overtime, which is any time before 7:30 am and after 3:30 pm on week days



(c) Inspector -$100.00 per hour for any approval work on Saturday, Sunday or legal holidays (A)



(d)Administrative Aide -$40.00 per hour

(e) Assistant Township Engineer -$80.00 per hour or portion of an hour (B)



(f) Township Engineer -$125.00 per hour or portion of an hour (B)



Notes:



(a) Township shall not be obligated to provide these inspection services. The ability to provide these services will be strictly based on the availability of personnel. Entities requesting these services must have submitted a written request not less than one week prior to the date when services are requested. If the Township can not provide the inspection service, then no work may be done.



(b) These fees shall be charged in those cases where these individuals are requested and/or required to make site visits and the time shall be computed on a portal to portal basis.



(c) The hourly rates indicated will be adjusted annually, or as required, to reflect changes in salary status by resolution of the Township Council.



(2) Testing



Costs for any type of testing that may be required by the Township, at any time during the course of the work shall be paid by the developer. The developer shall submit a list of testing laboratories that they wish to use to the Township Engineer's office, for review and approval, before engaging such laboratory.



(3) Outside Consulting Services



When the Township Engineer deems it is necessary to retain outside professional inspection services, the developer shall be notified and shall reimburse the Township for all reasonable professional consulting fees, which shall also include clerical and administrative costs. Billing for outside services will be based on the fee schedule provided by the consultant and on file in the office of the Township Engineer.



B. For those subdivision and site plans where the reasonably anticipated fees are less than $10,000.00, fees may, at the option of the developer, be paid in two (2) installments. The initial amount deposited shall be 500 of the reasonably anticipated fees. When the balance on deposit drops to 10% of the reasonably anticipated fees because the amount deposited by the developer has been reduced by the amount expended for inspection and associated administrative costs, the developer shall deposit the remaining 500 of the anticipated inspection fees. For those developments for which the reasonably anticipated inspection fees are $10,000.00 or greater, fees may, at the developers option, be paid in four (4) installments. The initial amount deposited by a developer shall be 25% of the reasonably anticipated fees. When the balance on deposit drops to 10% of the reasonably anticipated fees because the amount deposited by the developer has been reduced by the amount expended for inspections and associated administrative costs, the developer shall make additional deposits of 25% of the reasonably anticipated fees. The Township Engineer shall not permit any construction requiring inspection to proceed if sufficient funds to pay the cost of those inspections and associated administrative costs are not on deposit.



Inspections



(a) Prior to construction, the developer shall arrange a pre-construction conference which shall include the developer and all site work contractors, the Township Engineer and/or his designee and, where appropriate, representatives of any other Municipal, Federal, State of County agencies having jurisdiction over or an interest in the work. The Township Engineer shall be notified by the developer, by certified mail, at least five (5) business days in advance of the planned start of any construction of any nature.



(b) No improvements shall be installed without having an approved site plan; an approved subdivision plan; required permits and without having been inspected by the Township Engineer's office. The Chief Engineering Inspector is authorized to issue a summons in the event any developer, owner, agent, individual or corporation refuses to honor a stop work notice. No underground installation shall be covered, partially covered or back filled until the installation has been inspected and approved. The Township Engineer's office shall be notified a minimum of twenty-four hours before each of the following phases of the work is started so that the work may be inspected by the Township. The work requiring inspection by the Township Engineer's office and/or such outside professional inspection service which the Township may retain, shall include, but not necessarily be limited to site clearing; grading, soil erosion control methods and devices; excavation and embankment; pavement sub-grade; curb forms; curbs; sidewalks; driveway aprons; storm sewers and appurtenances' water mains, hydrants, valves and appurtenances; bedding materials and placement; trench back fill materials and compaction; detention/retention basins and associated structures; pavements including stone base, intermediate course(s), and final wearing course, landscaping, top soil and seeding; street trees; street signs; traffic control signs; pavement markings; conservation easement markers and survey monuments.



(c) Unless given prior written approval, based upon a written request received by the Township one (1) week in advance of the date of such work, no work or the construction of improvements requiring same day inspection, shall be performed on Saturdays, Sundays or legal holidays, or at any other time except week days between the hours of 7:30 am and 3:30 pm.



(d) Inspection fees shall be charged only for the inspection of the actual improvements shown on an approved subdivision plan; an approved site plan or any approved plan revision and/or as required by an approving resolution. The Township Engineer's office and/or an outside professional inspection service shall charge only for inspections and administrative costs that are reasonably necessary to check the progress and quality of the work and such inspections and shall be reasonably based on the approved development plans and documents. Administrative costs to be charged may include but not necessarily be limited to those necessary to prepare written reports; correspondence; statements; obtain job photos and similar and usual activities associated with construction projects.



(e) Streets shall not receive the finished surface course paving until all heavy construction is completed, as determined by the Township Engineer. Shade trees shall not be planted until all grading and earth moving is completed and only when seasonally appropriate.



(f) All inspections relative to the requirements of the Uniform Construction Code of the State of New Jersey shall be made by the Sub-Code Officials and/or appropriately licensed inspectors. Final occupancy permits may be issued by the Construction Official after be has determined that all provisions of the Uniform Construction Code and any conditions of the construction permit(s) have been complied with; has determined that all improvements including grading, splash blocks., sump pump drains and other appurtenances within eight (8) feet of the foundation wall of residential buildings have been properly installed; the Construction Official receives notification of approval of the site improvements from the Township Engineer's office and has obtained approval of all other State, County or Municipal authorities having jurisdiction or an interest.



(2) (A) [Added 4/27/99 by Ord. No. 3037] All improvements to the sanitary sewerage system shall be subject to inspection and approval by the Franklin Township Sewerage Authority who shall be notified by the subdivider or developer at least forty-eight (48) hours prior to the start of construction. No underground installation shall be covered until inspected and approved by the Franklin Township Sewerage Authority or other agencies having jurisdiction over the particular installation. If such installation is covered prior to inspection, it shall be uncovered or such other inspection means used, such as television or other pipeline camera as may be deemed necessary by the Franklin Township Sewerage Authority, and any charges therefor shall be paid for by the developer.



(B) Inspection of any work by the Franklin Township Sewerage Authority or other agencies having jurisdiction shall not be considered to be final approval or rejection of the work, but shall only be considered to be a determination of whether or not the specific work involved was done to Franklin Township Sewerage Authority specifications or other required standards at the time of installation. Damage to such work or other unforeseen circumstances such as the effect of weather, other construction, changing conditions, settlement, etc. , between the time of installation and the time that the developer wishes to be released from his performance bond shall be the full responsibility of the developer and shall not be considered accepted work until the performance bond is released. The developer shall not enter into any contract requiring the Franklin Township Sewerage Authority, or any of its agents, employees or other representative to make any declarations, written or otherwise, as a condition of payment of said developer to a contractor as to the acceptance or rejection of the work.



**Webmasters Note: The previous subsections, C.(1)A. through 2(B), have been amended as per the 2000 Supplement.



(3) Modification of Improvements - At any time, whether as a result of inspection of the work or otherwise, the Franklin Township Sewerage Authority may recommend to the approving authority or other agency having jurisdiction that the subdivider be required to modify the design and extent of the improvements required.



(4) The approving authority may act in accordance with such recommendation provided, however, that it must first afford the subdivider an opportunity to be heard. Similarly, the approving authority may grant the applicant permission to effect such modification upon his own application with the approval of the Franklin Township Sewerage Authority and any other agency having jurisdiction.



D. Maintenance of Detention/Retention Basins. [Added 5/25/99 by Ord. No. 3047]



(1) All detention/retention basins for storm water drainage in any multi family residential use development or nonresidential use developments shall be owned and maintained by a condominium, homeowner's association or other private individual or group. All detention/retention basins for storm water drainage located within or as a part of a solely single-family residential use development shall be dedicated to the Township of Franklin. Prior to the acceptance of any storm water facility by the Township of Franklin, same shall be certified by the Township Engineer to have been constructed in accordance with the requirements and specifications of this section. In addition, prior to the issuance of any certificate of occupancy, the developer shall post with the Township of Franklin an amount to be determined in accordance with the formula set forth below for maintenance for twenty-six (26) years to be placed in an escrow account maintenance, which funds shall be utilized for the maintenance of such detention/retention facility.



(2) Technical Standards for the Construction of Improvements



(a) The fees required by Schedule "All set forth below shall be for the purpose of reimbursing the Township for direct fees, costs, charges and expenses for the maintenance of a detention/retention facility including, but not limited to routine mowing, maintenance of landscaping, general maintenance concerning inlets, cleaning of property and long range maintenance on a periodic basis.



(b) The escrow amount required by Schedule "All shall be deposited with the Township prior to the issuance of any certificates of occupancy. All funds shall remain in an interest bearing escrow account. The entire amount of any interest shall be applied to the purposes for which it was originally deposited.



(c) All costs, expenses, charges and fees incurred by the Township for the maintenance of a detention/retention basin shall be charged against the escrow fund established for the maintenance of such a basin.



(d) The Township will conduct maintenance programs at its discretion and shall maintain liability insurance on the basin out of the funds so created. The maintenance programs may include:



[1] Routine mowing of the property. Mowing costs shall be estimated at the rate of one acre per hour. The cost per hour for the Township labor and equipment shall be multiplied by the number of acres to be mowed. A base number shall also be included for the mobilization and the maintenance of the equipment.



[2] Maintenance of landscaping. The cost shall be based upon the number of hours for landscape maintenance multiplied by a rate per hour for labor and equipment. Any and all additional stock which shall be necessary to replace approved landscaping shall also be charges against the fund.



[3] General Maintenance. The cost for general maintenance shall be based upon a one-hour mobilization time together with the total number of hours expended times the rate per hour for township labor and equipment.



[4] Long-term maintenance. The long-term maintenance shall be calculated on a cost per acre and applied against the assumption that a residential detention/retention basin needs rejuvenation every fifteen (15) years. These amounts are reduced thereto an annualized cost.



[5] Insurance. The township shall assume liability for the property and a portion of the fund shall be used for purchase of insurance for the detention/retention basin.



(e) Calculation of the developer fund. The amount of money to be placed in escrow shall be calculated in accordance with the worksheet set forth in Schedule "A". The first year costs are multiplied by the factor of 26.48. Said calculation provides for the township to receive sufficient funding for twenty- five (25) years based upon an assumption of a six percent increase per year and five and one half percent return on investment earnings added to the account. The cost for the maintenance by the township employees shall be based upon the amount of time services are performed and the unit (i.e., per diem or hourly fee) of the professional, expert, employee or staff in accordance with the contracts or as prescribed by the salary ordinance of the Township of Franklin.



**Webmasters Note: The previous letters C and D have been amended as per supplement dated 12/31/99.