(a) A franchise may be revoked by Council for failure to construct as required, operate or maintain the cable system as required by this chapter or the franchise agreement or for other material breach of this chapter or the franchise agreement. However, where the City has issued a franchise specifically conditioned upon the completion of construction or other specific obligation by a specified date pursuant to Section 707.09(b), failure of the franchisee to complete construction or comply with other specific obligation as required will result in the automatic forfeiture of the franchise without further action by the City, unless the City, at its discretion and for good cause demonstrated by the franchisee, grants an extension of time. If within thirty (30) calendar days following written notice from the City to the franchisee that it is in material breach of this chapter or the franchise agreement, the franchisee has not taken corrective action or corrective action is not being actively and expeditiously pursued, the Council, acting on its own motion or upon the recommendation of the Mayor, may give written notice to the franchisee of its intent to consider revocation of the franchise, stating its reasons.
(b) Before final action can be taken, the Council shall hold a public hearing at which time the franchisee and members of the public must be given an opportunity to present evidence and make argument. Following the public hearing the Council shall determine whether or not to revoke the franchise based on any recommended decision, the evidence and argument presented at the hearing, and other evidence of record. The Council's determination shall be reflected in a written opinion setting forth the reasons for its decision.
(c) Any franchise may, at the option of the City, be revoked one hundred twenty (120) 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 franchisee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding, unless within that one hundred twenty (120) day period:
(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 chapter and the franchise agreement and has executed an agreement, approved by the court having jurisdiction, assuming and agreeing to be bound by the terms, and conditions of the franchise.
(d) In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a franchisee, the City may revoke the franchise by serving notice upon the franchisee and the successful bidder at the sale, in which event the franchise and all rights and privileges of the franchise will be revoked thirty (30) calendar days after serving such notice, unless:
(1) The City has approved the transfer of the franchise to the successful bidder; and
(2) The successful bidder has covenanted and agreed with the City to assume and be bound by the terms and conditions of the franchise.
(e) If the City revokes a franchise, or if for any other reason a franchisee abandons, terminates or fails to operate or maintain service to its subscribers, the following procedures and rights are effective:
(1) The City may require the former franchisee to remove its facilities and equipment. If the former franchisee fails to do so within a reasonable period of time, the City may have the removal done at the franchisee's and/or surety's expense.
(2) The City, by resolution of the City Council, may acquire ownership of the cable system at a fair market value.
(3) If a cable system is abandoned by a franchisee, the City may sell, assign or transfer all or part of the assets of the system.
(Ord. 75-89. Passed 6-26-89.)