Alaska Administrative Code
Title 17 - Transportation and Public Facilities
Chapter 55 - Local Control of State Public Works Projects
17 AAC 55.060 - Termination of local control agreement by department for convenience of state

(a) The department will, in its discretion, at any time, terminate an agreement executed under 17 AAC 55.020 and assume control of the project itself, if the department determines that termination is in the best interests of the state. The department will give written notice to the municipality of its decision to terminate the agreement not less than 15 days before the effective date of termination. The written notice will include a statement of why the decision to terminate was made.

(b) If an agreement is terminated for the convenience of the state under this section, the department will reimburse the municipality for that portion of its expenses which was not otherwise reimbursed under the agreement, and which is directly attributable to performance under the agreement. The department will also reimburse the municipality for any costs properly incurred by the municipality in honoring convenience termination clauses in its agreements with its contractors, as long as those clauses conform to the standard convenience termination clause used by the state for similar type contracts.

(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.