Borough of Carteret, NJ Article XI Guaranties and Inspections

§ 160-63 Installation of improvements.

[Amended 12-16-1993 by Ord. No. 93-54; 5-26-1994 by Ord. No. 94-20; 2-19-1998 by Ord. No. 98-4]

A. Installation of improvements prior to final subdivision approval.

(1) Prior to the filing of an application for final subdivision approval, the applicant shall have installed the improvements required herein under the supervision and inspection of the Borough Engineer, except that the Borough Council may accept a performance guaranty to assure the installation of the final bituminous concrete street surface course, monuments, shade trees, sidewalks, stop signs, topsoil, seeding, fertilizing and mulch.

(2) No performance guaranty shall be considered filed or accepted for filing with the Borough Clerk unless and until the following conditions are met:

(a) Final construction plans and an estimate of the cost of construction have been filed with the Borough Council.

(b) The Board Engineer shall have certified in writing to the Planning Board that the amount thereof is sufficient to assure the completion of the improvements and compliance with the tree protection and removal plan and the soil erosion and sediment control plan.

(c) The Borough Attorney shall have approved the sufficiency of the form and execution of said performance guaranty.

(d) The Borough Council shall have approved the qualifications of the surety and stipulated the duration of said guaranty.

B. Installation of improvements to final site plan approval. Prior to the filing of an application for final site plan approval, the applicant shall have installed any public on-tract improvements described herein as may be required in connection with the site development; provided, however, that the Borough Council may accept performance guaranties for the later installation of improvements. Also, prior to the filing of an application for final site plan approval, the applicant shall have installed any on-site improvements specified herein as the Planning Board may determine are necessary prior to building construction.

C. Installation in accordance with preliminary plat or site plan. All improvements shall be installed in accordance with the approved preliminary plat or site plan, except that the Board Engineer may, prior to construction, approve minor variations which site conditions may require. If major revisions are involved, a revised preliminary plat or plan shall be submitted to and approved by the Planing Board prior to commencement of construction.

D. Off-tract improvements. Also prior to the filing of an application for final subdivision or site plan approval, the applicant shall have paid his pro-rata share of the cost of any off-tract improvements necessitated by his development as determined in accordance with the requirements set forth herein.

E. Requirements for as-built plans.

(1) Prior to the acceptance by the Borough of any improvements installed for any subdivisions, the subdivider shall furnish to the Board Engineer as-built plans for the following drawn on translucent cloth or its equivalent on sheets not larger than 24 inches by 36 inches, at a minimum scale of one inch equals 50 feet horizontal and one inch equals five feet vertical:

(a) Roads (plans and profiles showing design elevations and center-line gradients and as-built elevations along road center line at fifty-foot stations and as-built center-line gradients).

(b) Surface and stormwater drainage (plans and profiles for facilities in roads and easements and showing pipe sizes, invert elevations, top or rim elevations and pipe gradients).

(c) Sanitary sewers (plans and profiles for facilities in roads and easements and showing pipe sizes, invert elevations, top or rim elevations and pipe gradients).

(d) Water mains, gas mains, underground electric conduits and underground telephone conduits (plans and profiles for facilities in roads and easements).

(2) All of the foregoing improvements and utilities may be shown on the same location plan with appropriate legends.

F. Inspection. All of the improvements listed herein shall be subject to inspection and approved by the Board Engineer, who shall be notified by the developer at least 72 hours prior to the start of construction. No underground installation shall be covered until inspected and approved by said Engineer. The agreement shall provide that the applicant shall reimburse the Borough for all reasonable inspection fees paid to the Engineer for the inspection of any improvements and construction.

G. Road opening and acceptance.

(1) No person, firm or corporation shall clear or improve any land for a street, right-of-way, road or avenue which has or may be dedicated to public use and which is not an accepted street until a permit has been previously obtained from the Borough Council authorizing such clearing or improvement.

(2) The approval of any plan by the Planning Board shall in no way be considered as an acceptance of any street, nor shall such approval obligate the governing body to maintain or exercise jurisdiction over such street, road, right-of-way or avenue.

(3) Before the acceptance of any road, street or avenue by the Borough Council:

(a) As-built plans of all road improvements shall be filed with the Borough Clerk.

(b) An affidavit shall be made by the developer or owner certifying that all the costs incurred in construction of the completed road have been paid in full.

(c) All deeds of ownership or easement and all other instruments required as a condition shall be submitted in proper form to the Borough of Carteret and approved by the Borough Attorney.

(d) Payment of the road acceptance fee as set forth herein shall be made to the Borough of Carteret.

(4) No certificate of occupancy shall be issued for the occupancy of any building in any development for which subdivision approval has been obtained from the Planning Board unless and until all improvements required to be made have been installed, including gas and electric service, water, sewer and paved roads; provided, however, that such certificate of occupancy may be issued if all the aforesaid improvements have been made with the exception of the final bituminous concrete surface course of the road on which the building or structure faces.

§ 160-64 Guaranties.

[Amended 2-19-1998 by Ord. No. 98-4]

A. Performance guaranty.

(1) The performance guaranty shall be in favor of the Borough of Carteret in an amount equal to 120% of the cost of such improvements. At least 10% of the performance guaranty shall be in the form of cash or a certified check made payable to the Borough of Carteret.

(2) The performance guaranty shall be approved by the Borough Attorney as to form, sufficiency and execution. The performance guaranty shall enumerate all required improvements in detail, setting forth the amount, quantity and specification of all items. Such performance guaranty shall run for a period to be determined by the Borough Council.

(3) Any cash or certified check furnished as a performance guaranty in favor of the Borough shall be held in escrow by the Borough Treasurer and deposited or invested in the manner prescribed by law for municipal funds, the principal amount to be refunded to the obligor upon release from liability or reduction in the amount of the performance guaranty.

(4) If the required improvements have not been installed in accordance with the performance guaranty, the obligor and surety shall be liable thereon to the Borough for the reasonable cost of the improvements not installed or improperly installed, and, upon receipt of the proceeds thereof, the Borough shall install such improvements. The cost of such improvements shall first be paid from the certified check required above.

B. Time of guaranty. The performance guaranty shall run for a term not to exceed 18 months from the date of final approval. With the consent of the principal, the performance guaranty may be extended by the governing body after the recommendation by the Planning Board by resolution for an additional period, not exceeding 18 months.

C. Extension of time. The time allowed for installation of the improvements for which the performance guaranty has been provided may be extended by the Borough Council by resolution. As a condition or as part of any such extension, the amount of any performance guaranty shall be increased or reduced, as the case may be, to an amount not to exceed 120% of the cost of the installation as determined as of the time of the passage of the resolution.

D. Completion of improvements; reduction of performance guaranty.

(1) Upon substantial completion of all required appurtenant utility improvements and the connection of the same to the public system, the obligor may notify the Borough Council in writing, by certified mail, addressed in care of the Municipal Clerk, of the completion or substantial completion of improvements and shall send a copy thereof to the Borough Engineer. Thereupon, the Borough Engineer shall inspect all improvements of which such notice has been given and shall file a detailed report, in writing, with the Borough Council indicating either approval, partial approval or rejection of such improvements, and a statement of the improvements as approved or rejected shall be set forth.

(2) The Borough Council shall either approve, partially approve or reject the improvements on the basis of the report of the Borough Engineer and shall notify the obligor in writing, by certified mail, of the contents of said report and the action of the Borough Council with relation thereto not later than 65 days after receipt of the notice from the obligor of the completion of the improvements. Where partial approval is granted, the obligor shall be released from all liability pursuant to its performance guaranty, except for that portion adequately sufficient to secure provision of the improvements not yet approved, provided that 30% of the amount of the performance guaranty posted may be retained to ensure completion of all improvements. 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 pursuant to such performance guaranty for such improvements.

E. Developer's agreement. Prior to any construction and coincident with the furnishing of the performance guaranty by the developer, there shall be drafted an agreement between the developer and the Borough of Carteret incorporating all of the terms and conditions of approval imposed by the Planning Board. The developer's agreement shall be drawn by the Borough of Carteret and shall be executed by the owner and the developer.

F. Prior to the release of the performance guaranty or in the event that all improvements are installed by the developer in lieu of posting a performance guaranty prior to final approval, the developer shall post with the Borough of Carteret a maintenance bond in accordance with Borough specifications, in a form acceptable to the Board Attorney. The maintenance bond shall amount to 15% of the cost of installing all improvements and completion of all plans within the development as determined by the Board Engineer. Said maintenance bond shall run for two years after the acceptance of said street, road or avenue by the Borough Council; provided, however, that in the case of developments on private roads as permitted and related herein, said maintenance bond shall run for two years after the completion of installing all improvements and after final approval.