(A) When any event, act or omission (on the part of the operator) occurs which represents a substantial violation of an integral provision of this chapter, or materially compromises the corporate character, or legal, financial or technical integrity and/or stability of the system or the operator to such a degree that the interests of the subscribers are negatively affected, then such event, act or omission may be considered a major breach of this chapter. Under such circumstances, the city shall notify the operator in writing, of the specific breach, and direct the operator to comply with all such provisions of this chapter.
(B) Provided, however, where the operator satisfactorily corrects any of the enumerated conditions, within 90 days from receipt of written notice, then in no event shall the enumerated condition be weighted against the operator in any subsequent review of franchise performance.
(C) Provided, however, that if the enumerated conditions cannot be corrected within 90 days from written notice because of circumstances beyond the operator's control, then the operator shall not be deemed in violation of the franchise.
(D) Within 75 days, after such written notice is delivered to the operator, the city shall conduct a public hearing on the matter.
(E) The city shall provide written notice to an operator, and any surety, of the time and place of said public hearing.
(F) At the time of the hearing, the operator may present information on the current status of the alleged breach of the franchise agreement. If the situation has been resolved, or steps are being taken to resolve the situation, then the operator may present the information at the hearing.
(G) If the affected operator fails to attend the hearing, and has not requested a continuance of the hearing, then the operator shall be deemed to have waived its right to a further continuation of the matter, and may be declared in default of the franchise agreement.
(H) After the public hearing, the city may determine the operator to be in compliance and dismiss the matter, or may determine that the operator has cured any noncompliance and thereby dismiss the matter. However, the city may determine that an ordinance violation exists and remains uncured. Consequently, upon a finding that the operator substantially violated an integral ordinance provision, or failed to cure a material outstanding ordinance violation, the city shall direct the operator to take corrective action within a specified period of time, and thereafter, if the operator has not taken such corrective action, may revoke, terminate, or cancel the franchise, unless the operator presents sufficient mitigating circumstances or the corrective action cannot be reasonably taken in the time allotted.
(I) When the city directs corrective action to take place within a specified time or declares the operator in default of the franchise agreement, that declaration shall be reduced to writing, and the notice of corrective action or default shall be delivered to such franchised operator, and any surety, within 15 days of the city's action.
(J) If within 60 days after the specified time for corrective action has expired, the operator, or surety does not take significant action to rectify the breach, or submit a plan detailing how the operator will eliminate the breach, then the city may revoke the operator's franchise, and shall notify the affected operator, and surety forthwith, unless there are mitigating circumstances.
(K) Notwithstanding the above, should the city notify the operator of its intention to revoke, the operator shall have the right to sell its assets to an independent third party. The city will not unreasonably withhold its consent to such assignment and shall grant its consent pursuant to § 120.41. Upon assignment of this franchise, pursuant to this revocation section, assignee shall receive a franchise in full force and effect, free of default, for the term remaining on assignor's franchise. Provided, however, that such sale shall not relieve the operator of any liability for its default.
(L) Notwithstanding any other provision of this franchise, it is the intent of the city not to subject the operator to penalties, fines, forfeitures, or revocation of the franchise in any of the following instances:
(1) In instances or for matters where a violation of the franchise by the operator was unintentional and of de minimus effect on subscribers, the public or the city;
(2) Where there existed circumstances reasonably beyond the control of the operator that precipitated a violation of the franchise, or were deemed to have prevented the operator from complying with any term or condition of the franchise; or
(3) Where there is no pattern of violation or occurrence of repeated violations of the same matter over time after notification by the city.
(Ord. O-19-08, passed 11-11-08)