A. The borough shall not award a contract or purchase order to any person, corporation, or other business entity who is delinquent in paying (1) any tax levied by the borough; (2) any special assessment levied by the borough; (3) any charge for utility or municipal waste services; or (4) any other borough fee due under the code, unless the person, corporation, or other business entity cures the delinquency within 30 days after the mailing of written notice of the delinquency. In the case of a closely held business, this prohibition shall also apply to the delinquency of their legal principals or officers. For purposes of this section, a payment shall be considered “delinquent” when it is not made on or before the applicable deadline established by the Kodiak Island Borough Code, or by written notice if the code does not establish a deadline, or, if the code does not establish a deadline and a deadline is not established in a written notice, within 60 days of the mailing of written notice that the payment is due.

B. The borough may terminate any contract or purchase order if the person, corporation, or other business entity and, in the case of a closely held business, their legal principals or officers, becomes delinquent in payment of any of the items listed in subsection (A) of this section, unless the delinquency is cured within 30 days after mailing of written notice as above.

C. The borough may deduct from any amount otherwise due the person, corporation, or other business entity and, in the case of a closely held business, their legal principals or officers under any contract or purchase order an amount equal to the total of all such delinquent amounts that the contractor owes for (1) taxes levied by the borough; (2) special assessments levied by the borough; (3) charges for borough utility or municipal waste services; and (4) other borough fees due under the code.

D. Nothing in this section shall prevent any person, corporation, or other business entity and, in the case of a closely held business, their legal principals or officers from paying under protest any tax, special assessment, utility or municipal waste charge, or other borough fee, or pursuing appropriate judicial or administrative action to contest or recover any such tax, assessment, charge or fee.

E. For purposes of this section, the term “closely held business” shall mean a corporation, limited liability company or other business entity which has less than five unrelated (by blood or marriage) owners. [Ord. FY2013-11 §2, 2013; Ord. 2006-14 §2. Formerly §3.16.115].