§ 32-4-309. NONPERFORMANCE.

(a)

Notice of failure to complete. If an applicant fails to complete a public improvement or private improvement, the agency responsible for inspection and approval of the improvement shall, in writing:

(1)

Notify the applicant of the failure to complete the public improvement or private improvement required in an agreement with the county under this subtitle; and

(2)

Grant the applicant a period of not less than 30 and not more than 120 days to complete the public improvements or private improvements.

(b)

Use of performance security upon failure to complete.

(1)

If the applicant has failed to construct the public improvements or private improvements within the time period authorized under subsection (a)(2) of this section, the county may use the performance security posted by the applicant for the following purposes:

(i)

To pay, in whole or in part, any final judgment obtained by a person having a written contract with the applicant for work on improvements required under an environmental, right-of-way improvement, or utility agreement, and performed before the date of default in the construction of the public improvements or private improvements;

(ii)

To complete the public improvements or private improvements through the use of county forces or through the engagement of private contractors, in accordance with subsection (c) of this section; and

(iii)

To cover any additional costs, including the costs of inspection, overhead, and other administrative and legal costs incurred by the county, as a result of the applicant's default.

(2)

After the county has used the performance security as provided for in this subsection, any proceeds remaining from the performance security shall revert to the general fund of the county.

(c)

Completion of improvement by private contractor.

(1)

If the county elects to engage a private contractor to complete the public improvements or private improvements required in the environmental, right-of-way improvement, or utility agreements, the county may award contracts for the completion of any or all of the public improvements or private improvements through:

(i)

The process of informal bidding as provided for in § 10-2-308 of the Code; or

(ii)

The award of contracts to the private contractors hired by the applicant before the failure to complete the improvements, in amounts not to exceed the amount of the proceeds of the performance security.

(2)

The award of completion contracts under this subsection is subject to the prior approval of the Director of Budget and Finance.

(3)

The county shall provide notice of award of contracts under this section to the County Council under § 902(f) of the Charter.

(1988 Code, § 26-245) (Bill No. 38-98, § 6, 6-20-1998; Bill No. 79-01, § 2, 7-1-2004; Bill No. 75-03, § 25, 7-1-2004)