Point Pleasant Beach
City Zoning Code
City Zoning Code
§ 19-16.2
Performance and Maintenance Guarantee for Major Subdivision and Site Plans.
a.
Performance Guarantee Estimate. No final subdivision plat or site plan shall be approved by the board until satisfactory completion and performance of all such required improvements (§ 19-15) have been certified to the board by the Borough Engineer unless the developer or owner shall have filed with the Borough a performance guarantee in an amount not to exceed 120 percent of the cost of the required improvements in such uncompleted portions thereof as estimated by the Borough Engineer, and assuring the installation of such uncompleted improvements within a period not to exceed 24 months as determined by the board and its engineer. However, with the consent of the developer and the surety, if there be one, the board may extend the term of the performance guarantee for an additional period or periods not to exceed an additional 12 months. As a condition or as a part of any such extension, the amount of any performance guarantee shall be increased or reduced, as the case may be, to an amount not to exceed 120 percent of the cost of the installation as determined as of the time of the passage of the resolution.
1.
A performance guarantee estimate shall be prepared by the Borough Engineer setting forth all requirements for improvements as fixed by the board, and establishing a performance guarantee amount equaling 120 percent of said estimated cost. The Borough Council shall pass a resolution either approving or adjusting this performance guarantee estimate in accordance with the provisions of this subsection.
2.
The approved performance guarantee estimate shall fix the requirement of maintenance of the utilities and improvements to be installed and completed by the developer. A surety company or cash bond meeting the requirements hereinabove set forth may be furnished to secure the maintenance guarantee or the performance bond may be styled or amended to provide such security in reduced amount in keeping with the requirements.
b.
Approval by the Borough Attorney and Borough Engineer.
1.
The developer shall present two copies of the performance guarantee in an amount equal to the amount as hereinabove required for approval as to sufficiency, form, and execution by the Borough Engineer and the Borough Attorney.
2.
The Borough Attorney shall notify the secretary of the board prior to the board meeting that the performance guarantee is properly executed and may be accepted by the board.
c.
Bonding and Cash Requirements.
1.
The performance guarantee shall be the approved performance guarantee estimate and as surety a performance bond in which the developer shall be principal, the bond to be provided by an acceptable surety company licensed to do business in the State of New Jersey and acceptable to the Borough, or cash or a certified check shall be deposited with the Borough by payment to the Borough Treasurer. The Borough Treasurer shall issue its receipt for such cash deposits and shall cause the same to be deposited in a bank named by and at the risk of the developer in the name of the Borough to be retained as security for completion of all requirements and to be returned to the developer upon completion of all required work and expiration of the period of maintenance guarantee or, in the event of a default on the part of the developer to be used by the Borough to pay the cost and expense of completion of all requirements. Every bond, whether cash or surety, shall contain a clause to the effect that a determination by the Borough Engineer that the principal has defaulted in the performance of this obligation shall be binding and conclusive upon the surety and the principal.
2.
Ten percent of the amount of the approved performance guarantee estimate shall be deposited by the developer in cash with the Borough. The remaining 110 percent may be in cash or surety bond. In the event of default, the ten percent fund herein mentioned shall be first applied to the completion of the requirements and the cash or surety bond shall thereafter be resorted to, if necessary, for the completion of the requirements. The cash or surety bond may recite the foregoing provisions. The Borough Engineer's determination that the principal has defaulted in his obligation shall be binding and conclusive upon the principal.
d.
Inspections and Tests.
1.
All improvements and utility installations shall be inspected during the time of their installation under the supervision of the Borough Engineer to ensure satisfactory completion. The cost of the inspection shall be the responsibility of the developer and he shall deposit with the Borough Treasurer, for placement in a special trust fund account, a sum equal to six percent of the amount of the performance guarantee estimate of the cost of the required improvements to be built in the development to be applied to the payment inspection costs. The inspection fee shall in no case be less than five hundred ($500.00) dollars. If inspection costs exceed such sum, the developer shall deposit with the Borough Treasurer additional sums upon notice from the Borough Engineer. The Borough Treasurer shall return any balance of the inspection deposit to developer upon satisfactory expiration of the maintenance bond together with the paid invoices for all expenses charged.
2.
In no case shall any paving work (including prime and seal coats) be done without permission from the Borough Engineer's office. At least two days' notice shall be given to the Borough Engineer's office prior to any such construction, so that he or a qualified representative may be present at the time the work is to be done.
3.
The Borough Engineer's office shall be noticed after each of the following phases of the work has been completed so that he or a qualified representative may inspect the work:
4.
A final inspection of all improvements and utilities will be started within ten days of notification by the developer to determine whether the work is satisfactory and in agreement with the approved final plat drawings and the Borough specifications. The general condition of the site shall also be considered. Upon a satisfactory final inspection report, action will be taken to release or declare in default the performance guarantee covering such improvements and utilities.
5.
Inspection by the Borough of the installation of improvements and utilities by the developer shall not operate to subject the Borough to liability for claims, suits or liability of any kind that may be at any time arise because of defects or negligence, during construction of at any time thereafter; it being recognized that the responsibility to maintain safe conditions at all times during construction and to provide proper utilities and improvements is upon the developer and his contractors, if any.
6.
After completing the construction of the public improvement covered by the performance guarantee, the developer shall prepare a set of the approved public improvement and utility plans and the profiles amended to read "as constructed" and apply to the Borough Engineer for final inspection of the work. The Borough Engineer shall report to the Borough Council on the condition of the work and recommend that the performance guarantee be released, extended or declared in default.
e.
Release. The Borough Council shall, by resolution, release or declare in default each performance guarantee. Such performance guarantee shall remain in effect until released by the Borough Council. The amount of the performance guarantee may be reduced by the Borough Council by resolution when portions of the required improvements have been installed and have been inspected and approved by the Borough Engineer, provided, however, that no such reduction shall be approved until the Borough Engineer shall have certified the estimated cost of completing any remaining required improvements. If any improvements have not been installed in accordance with the performance guarantee, the obliger and surety shall be liable thereon to the Borough for the reasonable cost over and above the ten percent cash deposit on the improvements not installed and, upon receipt of the proceeds thereof, the Borough shall install such improvements. The Borough shall also have all other remedies as may be lawfully available.
f.
Conditions for acceptance of improvements. The approval of any plat under this chapter by the board shall in no way be construed as acceptance of any street or drainage system, or any other improvement required by this chapter, nor shall such plat approval obligate the Borough in any way to maintain or exercise jurisdiction over such street and drainage system or other improvement. No improvement shall be accepted by the Borough Council unless and until all of the following conditions have been met.
1.
The Borough Engineer shall have certified in writing that the improvements are complete and that they comply with the requirements of this chapter.
2.
The final plat or site plan shall have been approved by the Planning Board.
3.
The developer shall have filed with the Borough Council a maintenance guarantee in an amount equal to not more than 15 percent of the cost of the improvements or the cost of the original installation of the improvements and shall run for a period of two years. The procedures and requirements governing such maintenance guarantee shall be identical with the procedures and requirements for a performance guarantee. The requirements for a maintenance guarantee may be waived by the Borough Council only if the Borough Engineer has certified that the improvements have been in continuous use for not less than two years from the date of the Borough Engineer certified completion of such improvements in accordance with the provisions of § 19-15 of this chapter and that during this period, the developer has maintained the improvements in a satisfactory manner.