N.J. Admin. Code § 16:20B-6.2

Current through Register Vol. 57, No. 1, January 6, 2025

Section 16:20B-6.2 - Contract deadline

(a) Municipal local aid agreements using both formula allocations and urban aid allocations shall specify that a contract must be awarded by the municipality within 24 months from the date of grant notification. At any time, but at a minimum of 30 days prior to the 24-month deadline, a municipality may voluntarily cancel a municipal local aid agreement and release the funds back to the Department.

(b) An allotment provided to a municipality shall be rescinded, returned, or deducted from future allocations as a result of a municipality's failure to award construction or other approved contracts for 100 percent of the municipality's allotment within two years of notification by the Department of that year's allotment.

(c) In the event an award is not made within the 24-month deadline, the Department, at its discretion, may grant an extension of not greater than six months in duration for extraordinary circumstances.

1. Extraordinary circumstances are narrowly defined as:

i. Bidding problems. The project was advertised and bids received before the 24-month deadline, but because the bids exceeded the estimate, the project will be re-advertised for bid within three months or financing will be arranged to allow award within the next six months;

ii. Permits not approved. Environmental permit applications were submitted and accepted by all permitting agencies within 12 months of municipal local aid agreement execution and permits have not been received. Municipalities must provide details of issues precluding the issuance of the permits;

iii. Utility relocation work precludes advertisement, bid, and award during the 24-month deadline. The municipality has demonstrated communication and coordination with all utility companies within 12 months of municipal local aid grant agreement execution; however, utility companies are indicating that relocation work must be performed prior to the construction of the project. The municipality must provide details on the schedule of utility work precluding advancement of the municipal local aid project;

iv. Right-of-way is not available for the project. The municipality shall provide details on the schedule of right-of-way acquisition and any issues precluding advancement of the project; or

v. Declaration of a state of emergency by the Governor of New Jersey or the President of the United States that directly impacts the ability of the municipality to award the contract. The municipality must provide details on the projects schedule and the details as to how the state of emergency precluded the advancement of the municipal local aid project.

(d) Award deadline extensions must be requested in writing by the municipality a minimum of 30 days prior to the 24-month deadline, and shall include a resolution and justification for the extension of time that demonstrates ability to award the contract within the requested six-month period.

1. Meeting the extraordinary circumstances described in (c)1 above does not guarantee approval of a six-month deadline extension. The Department will consider factors such as likelihood of achieving the award within the next six months and past performance of the municipality. A six-month deadline extension will require approval of the Director of Local Aid and Economic Development with concurrence of the Commissioner. At any time, but at a minimum of 30 days prior to the extension of time deadline, a municipality may voluntarily cancel the municipal local aid agreement and release the funds back to the Department.

(e) If an extension of time is not granted, the municipal local aid agreement shall become null and void and the funds, except those funds programmed for Urban Aid, shall be rescinded.

(f) If an extension of time is granted, and the contract is not awarded within the extension period or the municipality has not voluntarily canceled the municipal local aid agreement as specified in this section, the municipal local aid agreement shall become null and void and the funds, except those funds programmed for Urban Aid, shall be rescinded.

N.J. Admin. Code § 16:20B-6.2

Adopted by 46 N.J.R. 868(a), effective 5/19/2014.

Amended by 53 N.J.R. 1510(a), effective 9/7/2021