(A) Notice of violation. The town shall provide licensee with a detailed written notice of any license violation upon which it proposes to take action, and a ten business day period within which licensee may:
(1) Demonstrate that a violation does not exist or to cure an alleged violation; or
(2) If the nature of the violation prevents correction of the violation within ten business days, to initiate a reasonable plan of action to correct such violation (including a projected date by which it will be completed) and notify the town of such plan of action.
(B) Default. If licensee fails to disprove or correct the violation within ten business days following the date of notice of violation or, in the case of a violation which cannot be corrected in ten business days and licensee has failed to notify the town of the licensee's reasonable plan of corrective action and to correct the violation within the specified time frame, then the town may declare the licensee in default, which declaration must be in writing. In the event that the town declares licensee in default, the town shall have the right to institute legal proceedings to collect damages from the date of declaration of default, or to exercise any other rights and remedies afforded to the town in law or equity, provided, however, that the town may institute revocation proceedings against licensee only after declaration of default, pursuant to division (F) and only on the grounds set forth therein.
(C) Hearing available to licensee. Within 15 days after receipt of a written declaration of default from the town, licensee may request, in writing, a hearing before the town or its agent, in a full public proceeding affording due process. The hearing shall be held within 30 days of the receipt of the request therefore and a decision rendered within ten days after the conclusion of the hearing. Any decision shall be in writing and shall be based upon written findings of fact.
(D) Appeal of default. Licensee may appeal a declaration of default to arbitration.
(E) Procedures applicable to arbitration. Any arbitration held pursuant to this chapter or the license shall be conducted as follows:
(1) Licensee and the town each shall, within 15 days of the decision to proceed to arbitration, appoint one arbitrator experienced in the cable television business, which arbitrators shall mutually select a third arbitrator of similar qualifications.
(2) Within 30 days after appointment of all arbitrators and upon 15 days written notice to the parties to the arbitration, the arbitrators shall commence a hearing on the dispute.
(3) The hearing shall be recorded and may be transcribed at the request of either the town or licensee.
(4) At the close of the hearings and within 30 days, the arbitrators shall prepare written findings and serve such decision upon the town and licensee.
(5) The decision of a majority of the arbitrators shall be binding upon the parties to the arbitration.
(6) Either party may seek judicial relief to the arbitrators' decision under the following circumstances:
(a) Either party fails to select an arbitrator;
(b) The arbitrators fail to select a third arbitrator;
(c) One or more arbitrator is unqualified;
(d) Designated time limits have been exceeded;
(e) The arbitrators have not proceeded expeditiously; or
(f) Based upon the record, the arbitrators' decision is arbitrary, capricious, unsupported by substantial evidence, an abuse of discretion, or based upon a mistake of law.
(g) All costs of arbitration shall be borne equally by the parties to the arbitration unless otherwise ordered by the arbitrators.
(F) Revocation. The town may revoke the license only after declaration of default and only for defaults by licensee arising from the following circumstances:
(1) Material misrepresentation by licensee to the town in information required to be provided under the license.
(2) Licensee willfully or persistently violates any material orders or rulings of any regulatory body having jurisdiction over the license.
(3) Licensee willfully fails to acquire the insurance required by this chapter.
(G) Procedures governing revocation.
(1) The town shall give written notice to the licensee of its intent to revoke the license and the lawful grounds therefore. Licensee shall have 30 days from such notice to object, in writing, and to state its reasons for such objection. In the event the town has not received a response satisfactory to it, it may then proceed to place its request for termination of the license at a Council meeting. The town shall cause to be served upon the licensee, at least ten days prior to the time and place of such meeting, a written notice of this intent to request such termination, and the time and place of the meeting, notice of which shall be published by the town at least once, ten days before such meeting in a newspaper of general circulation within the town.
(2) In addition to the licensee's right to appeal any declaration of default to arbitration under this section, if the town orders the termination of the license, the licensee shall have the right to appeal the determination of the town within 30 days to any agency or court of competent jurisdiction for de novo review. The town's determination to terminate the license shall not be effective pending final resolution of all appeals under this section.
(3) The Council may, at its sole discretion, take any other lawful action which it deems appropriate to enforce the town's rights under the license in lieu of revocation of the license.
(H) Jurisdiction and venue. Any legal action, whether in law or equity, and including any arbitration or other alternative dispute resolution, commenced by either party to the license, shall be commenced in the Superior Court of the state in the State of Arizona, Pinal County.
(Prior Code, Ch. 18, Art. V, § 18-319) (Ord. 343-04, passed 6-21-2004; Ord. 366-05, passed 3-7-2005)