(A) When the franchised operator violates an integral provision of this subchapter, then the franchised operator shall be considered in default of this subchapter.
(1) Examples of a default shall include, but are not limited to: Bankruptcy; insolvency; failure to pay taxes or franchise fees; failure to receive written city approval for an assignment; fraud or deceit; or failure to substantially abide by the integral terms and conditions of the franchise agreement or this subchapter. Events in the nature of force majeure or conditions which cannot be corrected because they are matters beyond the immediate control of the affected cable operator shall not be considered a default. Other examples of a default specifically include material breach, whether by act or omission, of any terms or conditions of this subchapter, material misrepresentation of facts presented in the submission of information required by the franchise agreement or this subchapter, material misrepresentation of fact in the application for or negotiation of the franchise or failure to provide subscribers or users with service as required by the franchise.
(2) In the event that a default occurs, the city shall notify the affected cable operator in writing of the specific violation(s).
(3) The cable operator shall have 45 days from the receipt of the written notice or such longer time as may be necessary in the circumstance to bring itself into compliance so that it is no longer in default of its franchise or this subchapter, as the case may be.
(4) If the cable operator fails to cure its default within the time period provided for above, the matter shall be set for public hearing before the Council to be held no sooner than 45 days after the notice of default was mailed to the cable operator. Written notice of the time and place of the public hearing shall be sent by certified mail to the cable operator and the surety at least ten days prior to the date of the hearing.
(5) At the time of the hearing, the cable operator may present information on the current status of the alleged default in the franchise agreement. If the cable operator fails to attend the hearing where a continuance of the hearing has not been granted by the Council, then the franchised operator may be declared in default of the franchise agreement.
(6) If the default has not been resolved at the time of or as a result of the hearing, the Council may, after the public hearing, direct the cable operator to take corrective action within a specified period of time, or may declare the cable operator in default of the franchise agreement, and revoke or terminate the franchise. The Council’s action shall be mailed to the cable operator within 15 days of the Council’s action.
(7) If the Council directs corrective action to be taken and the cable operator does not rectify the default within the time specified, then the Council may, without further notice, declare the cable operator to be in default and revoke or terminate the franchise.
(8) Upon expiration without rights of renewal or cancellation of the franchise for cause, the city shall have the express right to require the cable operator to remove, at its expense, all portions of the cable television or telecommunications system from all public ways in the city.
(B) Upon cancellation of the franchise for cause, the city shall have the right to purchase the system for a price equal to its fair market value. The fair market value shall be determined in accordance with applicable law and generally accepted cable television appraisal and accounting principles. The original cost of all tangible and intangible property, as well as salvage value, and the book value, the replacement cost, cash flow and other factors may be considered. However, under no circumstances shall any valuation be made for any right or privilege granted pursuant to this franchise. If the city elects to purchase the system, the cable operator shall promptly execute any and all documents necessary to transfer title to the city and shall assign all of the contracts, leases, licenses, permits and any other rights necessary to maintain continuity of service to the public. The cable operator shall cooperate with the city, or such agency or person authorized or directed by the city to operate the system for a temporary period, in maintaining continuity of service. Nothing herein is intended as a waiver of any rights the city may have.
(Prior Code, § 110.097) (Ord. 13-08, passed 6-3-2013)