When the franchised operator violates an integral provision of this chapter, or acts so as to compromise the corporate character, or legal, financial or technical integrity and/or stability of the cable system or the franchised operator to a degree that the interests of the subscribers and users are negatively affected, then the franchised operator shall be considered in default of this chapter.
(A) Examples of a default include, but are not limited to: bankruptcy; insolvency; failure to pay taxes or franchise fees; failure to receive written town approval for an assignment; or failure to substantially abide by the integral terms and conditions of the franchise agreement or this chapter. 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.
(B) In the event that a default occurs, the town shall notify the affected cable operator in writing of the specific violation(s).
(C) The cable operator shall have 30 days from the receipt of the written notice to bring itself into compliance so that it is no longer in default of its franchise or this chapter, as the case may be.
(D) (1) 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 Board of Trustees to be held within 75 days after the notice of default was mailed to the cable operator.
(2) 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.
(E) (1) At the time of the hearing, the cable operator may present information on the current status of the alleged default in the franchise agreement.
(2) If the cable operator fails to attend the hearing where a continuance of the hearing has not been granted by the Board of Trustees, then the franchised operator may be declared in default of the franchise agreement.
(F) (1) If the default has not been resolved at the time of or as a result of the hearing, the Board of Trustees 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.
(2) The Board of Trustees’s action shall be mailed to the cable operator and the surety within 15 days of the Board of Trustees’s action.
(G) If the Board of Trustees directs corrective action to be taken and the cable operator or surety does not rectify the default within the time specified, then the Board of Trustees may without further notice declare the cable operator to be in default and revoke or terminate the franchise.
(Prior Code, § 13.20.450) (Ord. 96-13.20, passed - -1996)