[Ord. No. 11-1314 §§ 24,
25]
A. Posting of Guaranties. Performance guaranties shall be posted prior
to the granting of final developmental approval.
B. Form of Submission. Performance guaranties shall be submitted in
the form of 10% cash deposited with the Municipal Clerk and 90% in
a form acceptable to the Borough Director of Law. The amount of guaranty
shall be 120% of the approved estimate of the cost of improvements.
They may be usable at any point by the Borough for the nonperformance
of the subdivider. Such guaranties shall run for a term of 18 months,
subject to extension by the Borough Council for an additional period
of 18 months.
C. Noncompliance with Improvement Requirements. If required improvements
have not been installed in accordance with required standards and
specifications of the Borough within the time limit or extension,
the obligor and surety shall be liable thereon to the Borough for
all reasonable costs of improvements not installed, and, upon receipt
of the proceeds thereof, the Borough shall install such improvements.
D. Submission Requirements. Prior to acceptance of a performance bond
by the Borough Council, the Council shall receive the following:
1. A letter from the Borough Engineer stating that the proposed bond
covers all items required.
2. A list of the items covered and their cost.
3. A letter of approval from the Borough Director of Law as to bond
form.
4. A letter from the Borough Engineer and Planning Board/Zoning Board
stating that the plans meet all specifications.
E. Acceptance of Performance Guaranty. Following acceptance of a performance
guaranty by the Borough Council, a letter so stating shall be sent
to the Planning Board/Zoning Board prior to signing of final plats
for the development.
F. Release of Guaranty. Prior to release of a performance guaranty in
full or part, in accordance with New Jersey law, the Borough Council
shall receive the following:
1. A recommendation from the Board.
2. As-built plans of all utilities and roads approved by the Borough
Engineer.
3. A statement from the developer or subdivider that there are no liens
or other legal encumbrances on any of the improvements or utilities
to be deeded.
4. Deeds, free and clear from all encumbrances, for all streets, public
easements, drainage easements or other dedicated lands.
5. An acceptable maintenance guaranty.
[Ord. No. 11-1314 § 26]
All improvements required by the Board shall, prior to the release
of performance guaranties, be covered by a maintenance bond running
in favor of the Borough in the amount of 15% of the estimated cost
of improvements, as determined by the Borough Engineer. Said bond
shall run for a period of two years following acceptance by the Borough
and shall provide for proper repair and/or replacement during this
period. In the event that all improvements have been completed prior
to granting of final approval by the Board, the maintenance bond shall
be posted before final plat approval. Maintenance bonds will be approved
as to form by the Borough Director of Law.