(A) A franchise may be revoked by the Council for material 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 § 115.20(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 60 calendar days following written notice from the city to the franchisee that it is in substantial and 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 therefor.
(B) Before final action can be taken, the city shall commence an administrative proceeding, initiated by a hearing order which establishes the issues to be addressed in the hearing and the procedures to be followed and appoints a presiding officer acceptable to the franchisee, who shall be unaffiliated with either the city or the franchisee, for the hearing. In any such hearing, the franchisee shall be provided adequate notice and the franchisee and city shall be afforded fair opportunity for full participation including the right to introduce evidence, to require the production of evidence, and to question witnesses. A transcript shall be made of the hearing. Upon the completion of the hearing, the presiding officer shall issue a recommended written decision. Parties to the hearing and the public shall have 30 calendar days to comment on the recommended decision after its issuance. Based on the recommended decision, the comment and arguments presented and other evidence of record, the Council, following a public hearing, shall make a final determination on whether to revoke the franchise. The Council shall issue a written decision setting forth the reasons for its decision.
(C) Any franchise may, at the option of the city be revoked 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 proceedings unless within that 120-day period:
(1) The assignment, receivership or trusteeship has been vacated; or
(2) The 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 30 calendar days after serving the 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) 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.
(1989 Code, § 115.26) (Ord. 1988, passed 11-9-1992)