Buena Vista Township
City Zoning Code
City Zoning Code
ARTICLE VII
Performance and Maintenance Guaranties
§ 115-43 Guaranties required; posting; exceptions.
A.
Performance guaranties shall be required to be posted prior to the granting of final development approval, and maintenance guaranties shall be required to be posted prior to release of performance guaranties in connection with on-tract improvements as specified elsewhere in this chapter and in accordance with the provisions of this article. Requirements for performance and maintenance guaranties specific to resource extraction operations are contained in §§ 115-61A and B and 115-116C(7).
B.
In the event that other governmental agencies or public utilities will install the required improvements, or said improvements are covered by a performance or maintenance guaranty to another governmental agency, no performance or maintenance guaranty, as the case may be, shall be required by the municipal agency for such improvements.
§ 115-44 Performance guaranties.
[Amended 3-26-2018 by Ord. No. 53-2018]
A.
Form. A performance or maintenance guaranty required in connection with the Buena Vista Township development regulations shall be in one of the following forms, the proceeds of which may be claimed by Buena Vista Township in the event that the requirements of final approval guaranteed thereby are not met:
(1)
A corporate surety bond furnished by a bonding or surety company authorized to do business in the State of New Jersey.
(2)
A certified or cashier's check made payable to the Township of Buena Vista.
(3)
A certificate of deposit from a recognized banking institution, which deposit may be withdrawn only after action by the governing body determining that the requirements of final approval guaranteed thereby have been fulfilled.
(4)
An irrevocable letter of credit from a recognized New Jersey banking institution.
B.
Term. For all conventional development, performance guaranties shall run for a term, to be fixed by the municipal agency, of no more than three years, except that with the consent of the obligor and the surety, if there is one, the governing body may, by resolution, extend the term of such performance guaranty for an additional period, not to exceed three years. The amount of the performance guaranty may be reduced by the governing body by resolution when portions of the required improvements have been satisfactorily installed.
C.
Lack of performance. If required improvements are not completed or corrected in accordance with the performance guaranty, the obligor or the surety, if there is one, shall be liable thereon to the municipality for the reasonable cost of the improvements not completed or corrected, and the municipality may, either prior to or after receipt of the proceeds thereof, complete such improvements.
D.
Verification. All performance guaranties shall be submitted to the Township Clerk. The Township Clerk shall forward one copy of any performance guaranty to the Township Engineer, who shall notify the approval agency and the Township Attorney if the performance guaranty is in sufficient amount to assure the completion of all required improvements. In no case shall a performance guaranty exceed 120% of the estimated cost of installation for improvements covered. The performance guaranty may cover street subbase, grading, pavement, gutters, curbs, sidewalks, streetlighting, street trees, surveyor's monuments, water mains, sanitary sewers, drainage structures, public open space improvements and, in the case of site plans, privately owned perimeter buffer landscaping.
E.
Legal review. The Township Clerk shall forward a copy of the performance guaranty to the Township Attorney who shall review and approve same as to form and execution. The Township Attorney shall notify the municipal agency as to the acceptability of the performance guaranty in terms of its form and execution.
F.
Notice of expiration.
(1)
On the granting of final approval of a development and the accepting of a performance guaranty in connection therewith by a municipal agency, the agency's administrative officer shall so notify the Township Clerk in writing.
(2)
The Township Clerk shall maintain a record of all performance guaranties received in connection with development review and shall, within at least 90 days of the expiration of such guaranty, notify the governing body of said pending surety expiration. Copies of said notice shall be sent to the municipal agency, Township Attorney and Township Engineer.
G.
Release.
(1)
When all of the required improvements have been completed, the obligor shall notify the governing body, in writing, by certified mail, addressed in care of the Township Clerk, of the completion of said improvements and shall send a copy thereof to the Township Engineer. Thereupon, the Township Engineer shall inspect all of the improvements and shall file a detailed report, in writing, with the governing body recommending either approval, partial approval or rejection of the improvements with a statement of reasons for any rejection. If partial approval is recommended, the cost of the improvements rejected shall be set forth.
(2)
The governing body shall either approve, partially approve or reject the improvements, on the basis of the report of the Township Engineer, and shall notify the obligor, in writing, by certified mail, of the contents of said report and the action of the governing body with relation thereto, not later than 65 days after receipt of the notice from the obligor of the completion of the improvements.
(3)
Where partial approval is granted, the obligor shall be released from all liability pursuant to its performance guaranty, except for the portion adequately sufficient to secure provisions of the improvements not yet approved. 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.
H.
Rejection. If any portion of the required improvements are rejected, the governing body 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.
§ 115-45 Maintenance guaranties.
[Amended 3-26-2018 by Ord. No. 53-2018]
A.
Establishment. Prior to final approval of any development application, the municipal agency may require the developer to execute a maintenance guaranty and post said guaranty with the Township Clerk as a surety for maintenance and repair of all on-tract improvements required to be installed by the developer that will be dedicated to a public authority.
B.
Term; amount. The maintenance guaranty shall run for a period of two years from date of final acceptance of the improvements subject to a performance guarantee by resolution of the governing body, after recommendation of acceptance by the Township Engineer, and its amount shall not exceed 15% of the Township Engineer's estimate of the cost of construction of required improvements that are the subject of the performance guarantee and that are being released, as well as for the following private stormwater management improvements: basins, in-flow and water quality structures within the basins, and the outflow pipes and structures of the stormwater management system, if any. The two-year term of the maintenance guarantee shall automatically expire at the end of said term.
D.
Verification. All maintenance guaranties shall be presented to the Township Clerk, who shall forward one copy of the guaranty to the Township Engineer and one copy to the Township Attorney. The Township Engineer shall advise the governing body and the Township Attorney if the maintenance guaranty is executed in the correct amount; and the Township Attorney shall notify the governing body as to the acceptability of the maintenance guaranty in terms of its form and execution.
E.
Recordkeeping. The Township Clerk shall maintain a record of all maintenance guaranties received by the municipality in connection with development approval and shall notify the governing body, the municipal agency and the Township Engineer 60 days prior to the expiration date of any maintenance guaranty.
F.
Release of forfeiture. Prior to the expiration date of any maintenance guaranty or to the release of any maintenance guaranty, the Township Engineer shall inspect the improvements covered thereby and report to the governing body concerning their condition and any deficiencies remaining. Release of maintenance guaranty shall be by resolution of the governing body based on recommendation for release by the Township Engineer. The governing body may cause a maintenance guaranty or a reasonable portion thereof to be forfeited if the report of the Township Engineer illustrates clearly that deficiencies in original workmanship or damage by the developer during the period of development have not been corrected.
G.
Inspection fees. The obligor shall reimburse the Township for all reasonable inspection fees paid to the Township Engineer for the foregoing inspection of improvements, which may be posted in escrow in the following manner:
§ 115-46 Contributions for off-tract improvements.
Where contributions for off-tract improvements as provided in § 115-33B have been required for street improvements or water, sewerage or drainage facilities, and easements therefor, as a condition for final development approval, said contribution shall be paid to the municipality prior to granting of final approval for any development. In the case of subdivisions, municipal agency approval shall not be granted and the plat or other filing document shall not be signed; in the case of any other development, final approval shall not be granted, no plats or plans shall be signed, a development permit shall not be issued or authorized and no building permit shall be issued; unless and until said required contribution for off-tract improvements has been received by the Township Clerk and he has certified receipt of the same to the municipal agency.