A. The City Council may revoke a franchise or reduce the term of a franchise if it finds, after a hearing, that a cable communications system operator has violated any provision of this Chapter or applicable law, committed a substantial breach of material terms of 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 Chapter or its franchise.
1. Such a breach includes, but not be limited to:
a. If the grantee practices, or attempts to practice, any fraud or deceit upon the City.
b. If the grantee becomes insolvent, unable or unwilling to pay its debts, or upon listing of an order for relief in favor of grantee in a bankruptcy proceeding.
c. If the grantee materially fails to meet the consumer service standards established in the franchise consistently over a three (3) month period of time.
d. If the grantee fails to provide or maintain in full force and effect, the liability and indemnification coverage, letter of credit or bonds required by the franchise.
e. If the grantee willfully violates any orders or rulings of any regulatory body having jurisdiction over the grantee relative to the franchise, provided that the grantee may contest any such orders or rulings by appropriate proceedings conducted in good faith, in which case no breach of the franchise shall be deemed to have occurred if the notice of violation is overturned.
f. If the grantee ceases to provide all cable service over all or a substantial portion of its cable system for a period of five (5) days or more, for any reason within the control of the grantee.
g. If the grantee willfully fails to make any payments required under the franchise and/or refuses to provide the City with required information, reports and/or test results in a timely manner as provided in the franchise.
h. If the grantee fails to initiate scheduled system construction or reconstruction more than one (1) year after construction is to be begin for any reason within the control of the grantee.
i. If delays in completion of scheduled system construction or reconstruction exceed six (6) months for any reason within the control of the grantee.
j. Any other act or omission by the grantee which materially violates the terms, conditions or requirements of the franchise or any order, directive, rule or regulation issued thereunder and which is not corrected or remedied within the time set forth in the written notice of the violation or, if the grantee cannot reasonably correct or remedy the breach within the time set forth in such notice, if the grantee should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter.
B. Before conducting a hearing to revoke a franchise, except as otherwise provided in this Chapter: (i) the City Manager must have given notice of a claimed violation, breach, default or failure; and (ii) the grantee must have been given thirty (30) days to cure the claimed default, except as provided herein, provided that the cure period for failure to remit franchise fees is fifteen (15) days. An opportunity to cure is not required where the City finds that the defect in performance is due to willful misconduct, is an adjudicated violation of criminal law, or is part of a pattern of violations where the grantee has already had notice and opportunity to cure. The grantee will be given at least twenty (20) days notice of the hearing date, and will be provided an opportunity to be heard at the hearing.
C. The City may declare a franchise forfeited without opportunity to cure where (i) a grantee abandons its cable communications system; or (ii) a transfer subject to the City's prior consent occurs without the prior consent of City.
D. The cable communications system or a part thereof, will be deemed abandoned if (i) the cable communications system operator notifies the City of its intent to abandon; (ii) the cable communications system operator willfully ceases providing cable service in accordance with its franchise; or (iii) the cable communications system operator does not provide cable service over the cable communications system or a part of the system for ninety-six (96) consecutive hours, and is not restoring service with all due diligence.
E. A franchise will terminate automatically by force of law 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 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 one hundred twenty (120) day period, if: (i) such assignment, receivership or trusteeship has been vacated; or (ii) such assignee, receiver or trustee has fully complied with the terms and conditions of this Chapter 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 Chapter and the franchise.
F. 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 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 thirty (30) calendar days after serving such notice, unless: (i) the City has approved the transfer of the franchise to the successful bidder; and (ii) 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 Chapter.
(Ord. No. 2001-014 § 2; Ord. No. 2006-009 § 22 (part))