Office of the Township Clerk
Ordinances

TOWNSHIP OF VERNON
ORDINANCE #06-01

AN ORDINANCE AUTHORIZING AND GOVERNING THE PAYMENT OF ESCROW DEPOSITS FOR THE REVIEW OF APPLICATIONS PURSUANT TO NJSA 40:55D-53.2

BE IT ORDAINED by the Township Council of the Township of Vernon, County of Sussex and State of New Jersey as follows:

1. Escrow Deposits: In addition to the initial fees or charges as elsewhere set forth, the municipal agency shall require escrow deposits in accordance with the Administrative Code of the Township. The Chief Financial Officer (CFO) shall make all of the payments to professionals for services rendered to the Township or approving authority for review of applications for development, review and preparation of documents, inspection of improvements or other purposes under the provisions of NJSA 40:55D-1 et seq. The application review and inspection charges shall be limited only to professional charges for review of applications for development, review and preparation of documents and for inspection of improvements for developments under construction and for review by outside consultants when an application is of a nature beyond the scope of the expertise of the professionals of the Township. The only cost to be added to any such charge shall be actual out of pocket expenses of such professionals or consultants including typical and normal expenses incurred in processing applications and inspecting improvements. No applicant shall be charged for any municipal, clerical or administrative functions, overhead expenses, meeting room charges or any of the municipal costs and expenses except as specifically provided by statute, nor shall any municipal professional add such charge to the bill. Charges for professionals employed by the Township shall be billed pursuant to the provisions of NJSA 40:55D-53.2.

2. Scope of Reimbursed Services. The Township shall be entitled to reimbursement for the review of applications, both as to completeness and content; for review and preparation of documents; for review of compliance with approval conditions; for correspondence relating to the foregoing; and for other related purposes.

3. Deposit of Escrow Funds and Refunds. Deposits in excess of $5,000.00 shall be held by the CFO in a special interest bearing account. Upon receipt of and approval of authorized bills, the CFO may pay same from the account. The Township shall not be required to refund interest which does not exceed $100.00 for the year. If the interest exceeds $100.00, the entire amount of interest shall be refunded annually to the applicant or applied for the purposes of the escrow. The Township may retain one third of the interest for administrative and custodial expenses. All sums not actually expended shall be returned within 90 days after the final action of the municipal agency or the Township relating to an application or approval upon certification of the Board Secretary that the application and all contingencies are complete.

4. Payments. Each payment charged to the escrow shall be pursuant to a voucher from the professional or consultant which voucher shall identify the personnel performing the service, the date services were performed, the hours spent in one quarter hour increments, the hourly rate and the expenses incurred. Each payment for services by a Township employed professional shall be accompanied by a statement containing the above information. Vouchers and statements shall be submitted to the CFO on a monthly basis in accordance with the procedures of the CFO. A copy of each voucher or statement shall be provided to the applicant and the municipal agency.

The CFO shall prepare and send a statement to the applicant which shall include an accounting of escrow funds with cumulative balance on a quarterly basis if monthly charges are $1,000.00 or less and on a monthly basis if the charges are more. If the escrow is insufficient to pay authorized payments, the CFO shall notify the applicant of the insufficient escrow balance. In order for work to continue, the applicant shall replenish the escrow within a reasonable time. Required health and safety inspections may be completed in such cases and shall be charged back against replenished funds.

5. Payments Before Permits. No permits or certificates of occupancy may be issued with respect to any approved application until all bills for reimbursable services have been received by the Township from professionals rendering services in connection with the application and payment has been made.

6. Close Out Procedures. Close out procedures shall comply with NJSA 40:55D-1 et seq and shall commence after the grant of final approval and the execution of a subdivision plat or site plan, if applicable, or after review and approval of improvements, if applicable, pursuant to NJSA 40:55D-53.

The applicant shall send written notice to the CFO by certified mail, return receipt requested, and to the approving authority and the relevant professional or consultant that the application or improvements, as applicable, are complete. The professional shall provide a final bill to the CFO and the applicant within 30 days of receipt of notice. The CFO shall provide a written final accounting to the applicant of the escrow account use within 45 days of receipt of the final bill. Any balances remaining in the escrow account including interest in accordance with NJSA 40:55D-53.1 shall be refunded.

7. Scope of Charges. All professional chares for review of an application for development, review and preparation of documents and/or inspection of improvements shall be reasonable and necessary, given the status and progress of the application pending or the improvement being constructed. Review charges shall only be charged with respect to a pending application, request by an applicant for modification or amendment or review of approval or improvements and/or conditions of approval. A professional shall not charge for review of items which are subject to approval by any State agency and not under Township jurisdiction except to the extent necessary to consult with the State.

8. Limitations on Inspection Fees. Inspection fees shall be charged only for actual work shown on the approved plan, amendment or modification or for inspection of improvements and/or conditions of approval. Inspections must be reasonable and necessary to check progress and quality of work.

9. Substitution of Professionals. The Township shall be responsible for the payment of fees to any substituted professional necessary to familiarize the substitute with the application, improvements or conditions of approval. The escrow shall not be billed for such time and fees.

10. Estimate of Cost of Improvements. The cost of the installation of improvements for NJSA 40:55D-53 shall be estimated by the Township Engineer based on documented construction costs for public improvements prevailing in the general area of the Township. The developer may appeal the estimate to the County Construction Board of Appeals pursuant to NJSA 52:27D-127.

11. Appeals. (a) An applicant shall notify the Township Council, the CFO, the approving authority and the professional, in writing, of any dispute of professional charges under this ordinance. The Township Council or designee shall attempt to remediate any dispute within a reasonable time. If the applicant is not satisfied, appeal may be taken to the County Construction Board of Appeals pursuant to NJSA 52:27D-127. Such an appeal shall be on notice to the Township Council, the CFO, the approving authority and the professional, in writing, and the applicant shall comply with the rules, regulations and requirements of the County Construction Board of Appeals. Appeal shall be filed within 45 days of receipt of the copy of the professional’s voucher by the applicant except in such case where the professional has not supplied the voucher. In such cases, the appeal shall be filed within 60 days of receipt of the Township statement of activity in the escrow account. An applicant may file an appeal for an ongoing series of charges for a period not to exceed 6 months to demonstrate a pattern of excessive or inaccurate charges by one professional. An applicant need not appeal each and every charge individually in such case.

     (b) During the pendency of an appeal, the Township or approving authority shall continue to process the application or inspections in the normal course without delay. The CFO may pay charges from escrow for which an appeal has been filed. If a charge is disallowed, the CFO shall reimburse the escrow account. If payment of a disallowed charge has been made to a professional, the professional shall reimburse the Township.

12. The Township Clerk is hereby directed to give notice at least ten days prior to the adoption of this Ordinance to the County Planning Board and to all other persons entitled thereto pursuant to NJSA 40:55D-15 and NJSA 40:55D-63 (if required). Upon the adoption of this ordinance after public hearing thereon, the Township Clerk is further directed to publish notice of the passage thereof and to file a copy of the Ordinance as finally adopted with the Sussex County Planning Board as required by NJSA 40:55D-16. The Clerk shall also forthwith transmit a copy of this Ordinance after final passage to the Township Tax Assessor as required by NJSA 40:49-2.1.

13. All ordinances or parts of ordinances or resolutions that are in conflict with the provisions of this Ordinance are repealed to the extent necessary.

14. If any article, section, subsection, term or condition of this Ordinance is declared invalid or illegal for any reason, the balance of the Ordinance shall be deemed severable and shall remain in full force and effect. This Ordinance shall take effect after publication and passage according to law.

NOTICE

NOTICE IS HEREBY GIVEN that the above ordinance was introduced and passed on first reading at the Regular Meeting of the Township Council of the Township of Vernon in the County of Sussex, State of New Jersey held in the Municipal Building on January 9, 2006 and the same came up for final passage at the Regular Meeting of the Township Council held on January 23, 2006, at which time, after persons interested were given an opportunity to be heard concerning said ordinance, the same was passed and will be in full force in the Township according to law.

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JANET E.MORRISON, MAYOR

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PATRICIA A. LYCOSKY, R.M.C.
TOWNSHIP CLERK