(A) Right to revoke; generally.
(1) The City Council may revoke a franchise if it finds that a grantee has committed a material breach of this article or its franchise or repeatedly failed to comply with its franchise; has defrauded or attempted to defraud the city or subscribers; or has attempted to evade the requirements of this article or its franchise.
(2) Before revoking a franchise, the following must have occurred:
(a) The Mayor must give a grantee notice of an alleged default in performance (which notice will describe the nature of an alleged violation or breach) and a 30 calendar day opportunity to cure or such additional time as is reasonably necessary (the "cure period"); except that an opportunity to cure is not required where the defect in performance is due to willful misconduct or fraud or attempted fraud, is an adjudicated felony violation of criminal law, or is part of a pattern of violations where the grantee has already had notice and opportunity to cure. The city may extend the cure period for up to 30 additional days if grantee has diligently attempted to correct the alleged default.
(b) Not sooner than 30 calendar days after the Mayor notifies the grantee of the default (or such longer period as may be required to encompass an extended cure period), the City Council shall hold a public hearing to consider whether the franchise should be revoked, at which the grantee and the public will be given an opportunity to be heard and grantee to present evidence for consideration by the City Council.
(3) Following the close of the public hearing the City Council may determine whether to revoke the franchise. If the grantee was entitled to an opportunity to cure a default, the franchise may not be revoked if the default was fully cured during the cure period, including by payment of all damages and penalties owed. If the City Council determines to revoke a franchise, it will issue a written decision setting forth the reasons for its decision.
(4) A copy of such decision will be transmitted to the grantee.
(B) Rights upon franchise termination or revocation. If the city revokes the franchise or the franchise otherwise terminates, the city shall have the following rights, in addition to the rights specified in this franchise or under applicable law:
(1) The city may require the former grantee to remove its facilities and equipment at the former grantee's expense. If the former grantee fails to do so within a reasonable period of time, the city may have the removal done at the former grantee's and/or surety's expense, subject to any right of abandonment that may be provided for under applicable law.
(2) The city, by City Council resolution, may acquire ownership or effect a transfer of the cable system in accordance with 47 U.S.C. § 547.
(3) Section 13-5-1-30(B)(2) does not apply to an abandonment. If a cable system or any part thereof is abandoned by grantee, the city may require the grantee to transfer title to the abandoned portions to it at no charge, free and clear of encumbrances, and the same will become the city's property and the city may keep, sell, assign, or transfer all or part of the assets of the cable system, or otherwise dispose of those assets as it sees fit.
(C) Streamlined provisions. A franchise granted pursuant to the provisions of this ordinance may provide for more specific revocation procedures to streamline resolution of any dispute.
(D) Termination in the event of bankruptcy. A franchise will terminate automatically by force of law 180 calendar days after an assignment for the benefit of creditors or the appointment of a receiver or trustee to take over the business of the grantee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding. However, the franchise may be reinstated within that 180 day period, if:
(1) Such assignment, receivership or trusteeship has been vacated; or
(2) Such assignee, receiver or trustee has fully complied with the terms and conditions of this article and the franchise, and has executed an agreement, approved by any court having jurisdiction, assuming and agreeing to be bound by the terms and conditions of this article and the franchise. In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a grantee, the city may revoke the franchise following a public hearing before the City Council, by serving notice upon the grantee and the successful bidder at the sale, in which event the franchise and all rights and privileges thereunder will be revoked and will terminate 30 calendar days after serving such notice, unless:
(a) The city has approved the transfer of the franchise to the successful bidder; and
(b) The successful bidder has covenanted and agreed with the city to assume and be bound by the terms and conditions of the franchise and this article.
(E) Effect of termination or forfeiture. Upon termination or forfeiture of a franchise, whether by action of the city as provided above, or by passage of time, the city may do one or a combination of the following:
(1) Grantee must, should the city so direct, stop using the cable system for the purposes authorized by the franchise.
(2) The city may require the former grantee to remove all or a portion of its facilities and equipment at the former grantee's expense, subject to any right grantee may have to abandon property in place. If the former grantee fails to remove its property within a reasonable period of time, the city may have the removal done at the former grantee's and/or surety's expense.
(3) The city, by resolution of the City Council, may acquire ownership or effect a transfer of all or a portion of the cable system in accordance with 47 U.S.C. 547. Franchisee shall execute such deeds and other papers as are necessary to transfer ownership to the city, free and clear of all encumbrances. Each franchise shall specify a procedure for determination of fair market value; if no procedure is specified, value shall be established by appraisal, with one appraiser appointed by the city, one by the grantee, and a third by the two appraisers.
(4) Notwithstanding the foregoing, the city may not, pursuant to this section, issue an order that violates 47 U.S.C. § 541(b)(3)(c).
(Ord. 24-2002)