Current through Register Vol. 56, No. 24, December 18, 2024
(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provided to a municipality shall be rescinded, returned, or deducted from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.
