The furnishing of a performance guarantee in favor of the Borough of Monmouth Beach in an amount not to exceed 120% of the cost of installation, which cost shall be determined by the Borough Engineer for improvements which the Planning Board may deem necessary or appropriate including streets, curbs, grading, pavement, gutters, sidewalks, street lighting, surveyor's monuments, as shown on the final plat and required by the Map Filing Law (N.J.S.A. 46:23-9.9 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 and, in the case of site plans only, other on-site improvements and landscaping. [8/9/1994]
a. The Borough Engineer shall prepare an itemized cost estimate of the improvements covered by the performance guarantee, which itemized cost estimate shall be appended to each performance guarantee posted by the obligor. [8/9/1994]
b. The performance guarantee shall consist of a developer's agreement, the terms of which shall concern the general development of the tract; 90% of the guarantee amount by: (a) cash, by means of a bank or treasurer's check, (b) a performance bond issued by a bonding or surety company approved by the Board of Commissioners as to form and content, (c) an irrevocable standby letter of credit, in a form prepared or approved by the Borough Attorney, (d) negotiable securities or (e) other security as may be approved by the Borough Attorney and Board of Commissioners; plus 10% of the performance guarantee amount in cash, certified check, savings passbook or certificate of deposit drawn on an insured banking institution in the State of New Jersey; provided that all rights, including the right to interest with dividends, be assigned to the Borough in a form of assignment acceptable to the Borough Attorney for the period of the bond and that the principal amount of the passbook or certificate of deposit, together with interest, be returned to the developer upon completion of the bonded improvements, or in the event of default, both the interest and principal shall be used by and for the benefit of the Borough in the completion of said improvements. [8/9/1994]
c. An irrevocable letter of credit shall only be accepted if it: (i) constitutes an unconditional payment obligation of the issuer running solely to the Borough for an express initial period of time in the amount required; (ii) is issued by a banking or savings institution authorized to do so and doing business in the State of New Jersey; (iii) is for a period of time of at least one year; and (iv) permits the Borough to draw upon the letter of credit if the obligor fails to furnish another letter of credit which complies with the provisions of this Section 30 days or more in advance of the expiration date of the letter of credit or such longer period in advance thereof as is stated in the letter of credit. All guarantees posted herein shall be in addition to and not in substitution for the developer's primary responsibility to install the improvements and complete the subdivision in accordance with all rules, regulations, standards, specifications, and Ordinances of the Borough. [8/9/1994]
d. A performance guarantee shall assure the installation of improvements on or before an agreed date, guarantee the completion of all improvements without damage to or interference with adjacent properties or public facilities, and hold the Board of Commissioners and the Planning Board and their employees and agents harmless with respect to any acts of the developer, its agents, successors or assigns. [8/9/1994]
e. All performance guarantee amounts shall be computed by the Borough Engineer based on the documented construction costs for public improvements prevailing in the general area of the Borough. The developer may appeal the Borough Engineer's estimate to the Board of Commissioners. The Board of Commissioners shall decide the appeal within 45 days of the appeal in writing by the Borough Clerk. After the developer posts a guarantee with the Borough based on the cost of installation of improvements as determined by the Board of Commissioners, he 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 guarantee. [8/9/1994]