17 AAC 55.050 - Termination of local control agreement by department for cause
(a) If a
municipality that has assumed control of a public works project under
AS
35.15.080 is in substantial violation of an
agreement executed under
17 AAC 55.020, or if the
municipality has failed to fulfill its responsibilities under the agreement in
a proper and timely manner, the department will, in its discretion, notify the
municipality of the violation or failure. If the municipality fails to correct
the violation within a reasonable time, or to offer assurance satisfactory to
the department that the violation or failure will be remedied or the work
defects cured, the department will, in its discretion, terminate the agreement
and assume control of the project. The department will give written notice to
the municipality at least 15 days before the effective date of termination, and
will state the reasons for the termination. The municipality may appeal the
department's decision to the commissioner within 10 days. Pending the
commissioner's decision, no work may proceed on the project. The commissioner's
decision is final.
(b) If an
agreement is terminated for cause under this section, the department will
compensate the municipality for satisfactory work on the project to the extent
that the municipality has not been compensated. However, the municipality is
not relieved of any liability to the department for damages caused by the
contract breach, and the department will, in its discretion, withhold
compensation due under this subsection until the amount of damages owing to the
department can be determined and deducted against the department's
obligations.
(c) The department
will, in its discretion, waive the requirements of this section in an agreement
if the municipality must sell revenue bonds to provide money for construction
of a public works project as proposed in that agreement.
Notes
Authority:AS 35.15.080
AS 44.42.030
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.