(A) Grounds for revocation. The grantor reserves the right to revoke any franchise granted hereunder and rescind all rights and privileges associated with a franchise awarded hereunder in the following circumstances, each of which shall represent a default and breach under this chapter and a franchise grant:
(1) If a grantee should default in the performance of any of its material obligations under this chapter or under such documents, agreements, and other terms and provisions entered into by and between the grantor and a grantee;
(2) If a grantee should fail to provide or maintain in full force and effect, the liability and indemnification coverages or the security fund or bonds as required herein;
(3) If any court of competent jurisdiction, or any federal or state regulatory body by rules, decisions or other action determines that any material provision of a franchise documents, including this chapter, is invalid or unenforceable prior to the commencement of system construction;
(4) If a grantee should willfully violate any orders or rulings of any regulatory body having jurisdiction over a grantee relative to a franchise unless such orders or rulings are being contested by a grantee in a court of competent jurisdiction;
(5) If a grantee ceases to provide services for any reason within the control of the grantee over a telecommunications system, grantee shall not be declared at fault or be subject to any sanction under any provision of this chapter in any case in which performance of any such provision is prevented for reasons beyond a grantee’s control. A fault shall not be deemed to be beyond a grantee’s control if committed by a corporation or other business entity in which a grantee holds a controlling interest, whether held directly or indirectly;
(6) If a grantee attempts to evade any of the provisions of this chapter, FCC rules, a franchise agreement, or practices any fraud or deceit upon the grantor;
(7) If a grantee’s construction schedule is delayed for more than 12 months later than the schedule contained in a franchise agreement and after due process, the grantor finds the delay was not excusable; and/or
(8) If a grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged as bankrupt.
(B) Procedure prior to revocations.
(1) The grantor may make written demand that a grantee comply with any requirement, limitation, term, condition, rule, or regulation or correct any action deemed cause for revocation. If the failure, refusal, or neglect of a grantee continues for a period of 30 days following such written demand, the grantor may immediately initiate franchise revocation procedures and shall cause notice of such action to be served upon a grantee, at least ten days prior to the date of a franchise revocation hearing, a written notice of this intent to request such termination, and the time and place of the meeting, notice of which shall be published at least once, ten days before such meeting in a newspaper of general circulation within a franchise area.
(2) The grantor shall hear any persons interested therein, and shall determine, in its discretion, whether or not any failure, refusal, or neglect by a grantee was with just cause.
(3) If such failure, refusal, or neglect by a grantee was with just cause, the grantor shall direct a grantee to comply within such time and manner and upon such terms and conditions as are reasonable.
(4) If the grantor shall determine such failure, refusal, or neglect by a grantee was without just cause, then the grantor may, by resolution, declare that franchise awarded hereunder to such grantee shall be terminated and security fund and bonds forfeited unless there be compliance by a grantee within such period as the grantor may fix or as established within a franchise.
(2011 Code, § 14.08.100)