(A) Termination. The license shall terminate, upon the expiration of the term thereof, unless renewal is successfully applied per applicable laws.
(1) If a licensee is in material violation of this chapter or in default of the terms of its license agreement, the city manager may make written demand that the licensee come into compliance with said requirements within a reasonable period of time, as specified in this chapter. If, after the cure period provided for in this chapter has run, the licensee is unwilling or unable to do so, the city manager may recommend the revocation, alteration or suspension of the license to the council, specifying the reasons for such action.
(2) A copy of any such recommendations shall be served by certified mail, return receipt requested upon the licensee, and the licensee shall be given at least 14 days notice prior to the date of a public hearing before the council to consider such action, and the licensee will be given an opportunity to present evidence and make argument at such meeting.
(3) The council shall consider the recommendations, the response of the licensee and hear from any other interested persons, and shall determine whether or not the licensee is in violation or default of its obligations and, if so, whether such failure was with just cause.
(4) If the council finds that the failure by the licensee was with just cause, the council shall direct the licensee to comply with such time and manner and upon such terms and conditions as are reasonable.
(5) If the council determines that the licensee’s failure was without just cause, the council may declare the license revoked, altered or suspended. The council may provide a specified period of time for the licensee to come into compliance before the revocation takes effect.
(6) A license may be revoked, altered or suspended by the council on the following grounds, among others, and taking into account any aggravating or mitigating circumstances:
(a) Fails to comply with any material provision of this chapter or the license agreement;
(b) Makes willful and material false or misleading statements in any application;
(c) Engages in the practice of any fraud or deceit upon the city or subscribers;
(d) Fails to abide by the privacy provision of this chapter;
(e) Fails to make timely payment of any monies due the city pursuant to this chapter;
(f) Unless otherwise provided in the license agreement, fails to commence construction in the license area within three months and to commence basic service within six months from the effective date of the license agreement;
(g) Fails to file and maintain the bonds, insurance, records, failure to pay license fees or assessed property taxes;
(h) For repeated material failure to maintain service quality under the standards prescribed for which the licensee receives notice and fails to cure; or
(i) Fails to restore service after 24 consecutive hours after notice to the licensee of interrupted service to the entire system, except when such interruption is beyond the control of the licensee.
(C) System disposal.
(1) In the event of termination or revocation of a license, the licensee involved shall offer to sell the cable TV system, at the fair market value, to a new licensee or applicant for a license.
(2) The fair market value shall be determined in accordance with generally accepted appraisal procedures. The original cost of all tangible and intangible property, as well as salvage value, book value, replacement cost, cash flow and other factors will be considered.
(3) Under no circumstances shall any valuation be made for any right or privilege granted by license. Should the licensee fail to negotiate a sale, as described above, the city may purchase the system at the fair market value for the purpose of leasing to qualified operator until a buyer can be found, pursuant to the provisions of A.R.S. § 9-509.
(D) Continuity of service.
(1) Licensee shall provide continuous service for the entire term of the license agreement to all subscribers and users in return for payment of the established rates, fees and charges.
(2) If licensee seeks to sell or transfer, or if the city revokes or fails to renew the license, licensee shall continue to operate the system as trustee for its successor in interest until an orderly and lawful change of operation is affected.
(3) This period of operation shall not exceed 120 days from the occurrence of any of the above events. Revenues accrued during that period of time shall be received by the operator.
(4) During that time, the cable system shall be operated under terms and conditions consistent with the most recent license agreement and this chapter.
(E) Revocation for cause. In addition to all other rights, powers and remedies available to the city, the city shall have the additional, separate and distinct right to revoke this license agreement and all rights, authority, power, privileges and permissions granted licensee by this license agreement if licensee substantially fails to cure or correct a material violation of this license agreement within the applicable time periods following compliance within this agreement, absent licensee’s pursuit of further remedies as provided for in this agreement or following a final decision of a court of competent jurisdiction reviewing the disputed matter.
(F) Revocation by ordinance.
(1) Revocation of the license shall be accomplished by passage of an ordinance at a properly noticed public hearing.
(2) An ordinance revoking the license shall include the reason for the council to justify revocation. The effective date of the revocation shall be stated in the ordinance. The license agreement shall terminate on the effective date of the revocation.
(3) An ordinance revoking the license shall not be passed without 30 days written notice to licensee that an ordinance to revoke the license will be considered by the council. Licensee shall retain the privilege to be heard by the council or any council committee regarding the proposed revocation ordinance.
(4) Licensee may request a review of the revocation findings and conclusions pursuant to applicable law and shall retain any other remedy which may be available to it under law.
(G) Continuance of service after revocation. The city may require licensee to continue operating its system after revocation until operation of the system can be transferred to a new owner or the city exercises its rights herein.
(H) Removal after revocation.
(1) Upon revocation of the license and after a review of the revocation findings and/or conclusions by a court of competent jurisdiction, if review is sought by licensee, the city may require licensee to remove, at licensee’s expense, any above-ground portion of its system from any street or other public right-of-way.
(2) In removing its underground system, licensee shall refill and compact, at its own expense, any excavation that shall be made, and shall leave all streets and other public rights-of-way, and private property, in reasonable condition, and without affecting, altering or disturbing in any way electric, telephone, gas, steam or water utilities or other cable system operator cables, wires or attachments.
(3) The insurance, indemnity and damage provisions of this license agreement shall remain in full force and effect during the entire term of removal.
(I) Failure to remove system. If licensee fails to commence removal of its system, or the part that was designated, in accordance with this section, within 60 days after written notice of the city’s demand for removal is given, or if licensee fails to complete removal without one year after removal has begun, the city shall have the right to exercise one of the following options:
(1) Assumption of ownership.
(a) Declare all right, title and interest to the system to be in the city or its designee with all right of ownership including, but not limited to, the right to operate the system or transfer the system to another for operation.
(b) Upon that declaration by the city, licensee shall be entitled to receive an equitable price from the city for the value of the system.
(2) Abandonment of the system. Declare the system abandoned and cause the system, or that portion designated by the city, to be removed. The cost of the removal shall be recoverable pursuant to the insurance and indemnity provisions of this license agreement, or from licensee directly.
(J) Additional duty to remove property. The city may require licensee to remove any above-ground portion of the system if licensee ceases to use that part of the system in the city for a continuous period of 12 months.
(Ord. 1413, passed 2-3-2015)