(a) Franchise may be terminated for material breach of terms and conditions; examples given. In addition to all other rights and powers retained by the city, the city reserves the right to terminate a franchise and all rights and privileges of the grantee in the event of a material breach of this article or a franchise agreement. A material breach by a grantee shall include, but shall not be limited to, the following:
(1) violation of any material provision of the cable ordinance or franchise agreement or any material rule, order, regulation or determination of the city made pursuant to a franchise;
(2) attempt to evade any material provision of the cable ordinance or a franchise or practice any fraud or deceit upon the city or the subscribers of the cable system;
(3) failure to begin or complete cable system construction, reconstruction or cable system extension as provided under a franchise agreement;
(4) failure to restore cable service after 48 consecutive hours of interrupted cable service, except when there is just cause and when approval of such interruption is obtained from the City Manager;
(5) substantial failure to satisfy the requirements regarding system characteristics or repeated failure to meet the technical performance standards specified in a franchise agreement;
(6) abandonment of the system, in whole or in material part, without the prior written consent of the city;
(7) substantial failure to supply the access channels and other support and any related services, equipment and facilities as required in a franchise agreement;
(8) substantial and repeated failure to comply with the consumer service standards and requirements set forth in the cable ordinance and a franchise agreement;
(9) any material misrepresentation, made by or on behalf of a grantee in its proposal to obtain a franchise, or in connection with the negotiation or re-negotiation of, or any amendment or other modification to a franchise agreement, to the extent that any such misrepresentation was relied upon by the city;
(10) there is made an assignment for the benefit of creditors or an appointment of a receiver or trustee to take over the business of the grantee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding, unless the conditions set forth in Section 95-18(e)(1) and (2) are fulfilled.
(b) Procedures outlined leading to possible termination of franchise. The City Manager may make a written demand that a grantee comply with any provision, rule, order, or determination under or pursuant to the cable ordinance or a franchise agreement. If the violation breach, failure, refusal or neglect by a grantee continues for a period of 30 days following such written demand without written proof that the corrective action has been taken or is being actively and expeditiously pursued, the City Manager may place the issue of termination of a franchise before the City Council. The City Manager shall cause to be served upon grantee, at least 20 days prior to the date of such City Council meeting, a written notice of intent to request such termination and the time and place of the meeting. Public notice shall be given of the meeting and the issue which the City Council is to consider.
(c) City Council shall hear and consider issues and determine if a violation has occurred. The City Council shall hear and consider the issue and shall hear any person interested therein, and shall determine, whether or not any violation by a grantee has occurred. The City Council may delegate to any board, commission, committee or city official any responsibilities or duties reserved to the Council under this article.
(d) City Council may declare franchise terminated if compliance does not occur within specified period. If the City Council shall determine the violation by a grantee was the fault of the grantee and within its control, the City Council, may, by ordinance, declare that the franchise of the grantee be terminated, unless there is compliance within such period as the City Council may fix.
(e) Franchise may cease and terminate 120 days after appointment of receivers. Any franchise granted shall, at the option of city, cease and terminate 120 days after the appointment of a receiver or receivers or trustee or trustees to take over and conduct the business of grantee whether in a receivership, reorganization, bankruptcy, or other action or proceeding unless such receivership or trusteeship shall have been vacated prior to the expiration of said 120 days, or unless:
(1) such receivers or trustees shall have within 120 days, after their election or appointment fully complied with all the terms and provisions of this article and a franchise granted pursuant hereto, and the receivers or trustees within said 120 days shall have remedied all defaults under the franchise; and,
(2) such receivers or trustees shall have within 120 days executed an agreement duly approved by the court having jurisdiction, whereby such receivers or trustees assume and agree to be bound by each and every term, provision, and limitation of the franchise agreement.
(f) Procedure if a foreclosure occurs.In the case of a foreclosure or other involuntary sale of the plant, property, and equipment of grantee, or any part thereof, city may serve notice of termination upon grantee and to the purchaser at such sale, in which event the franchise and rights and privileges of grantee shall cease and terminate 30 days after service of such notice unless:
(1) city has approved the transfer of the franchise, as and in the manner in this ordinance provided; and
(2) such successful purchaser shall have covenanted and agreed with city to assume and be bound by all the terms and conditions of the franchise agreement.
(Ord. No. 2801, § 3, 2-25-99)