(a) Grounds for revocation. The town reserves the right to revoke any franchise granted hereunder and rescind all rights and privileges associated with the franchise in the following circumstances, each of which shall represent a default and breach under this code and the franchise grant:
(1) If the franchisee shall default in the performance of any of the material obligations under this code or the franchise agreement;
(2) If the franchisee shall fail to provide or maintain in full force and effect the liability and indemnification coverage or the performance bond as required herein;
(3) If the franchisee shall violate material provision of any orders or rulings of any regulatory body having jurisdiction over the franchisee relative to this code or the franchise and any regulatory ordinance of the town or FCC after notice and an opportunity to cure;
(4) If the franchisee practices any fraud upon the town or cable subscribers;
(5) If the franchisee becomes insolvent, unable or unwilling to pay its debts or is adjudged bankrupt;
(6) Failure to restore service town-wide after ninety-six (96) consecutive hours of interrupted service, except when approval of such interruption is obtained from the town, as provided in sub-section 19-11(b);
(7) Material misrepresentation of fact in the application for or negotiation of the franchise or any extension or renewal thereof; and
(8) If the franchisee shall fail to pay the franchise fee due after demand as provided in this code.
(b) Effect of circumstances beyond control of franchisee. The franchisee shall not be declared at fault or be subject to any sanction under any provision of this code or the franchise agreement in any case, in which performance of any such provision is prevented for reasons beyond the franchisee's control. For the purposes of this code and any franchise agreement granted or renewed hereunder, causes or events beyond the franchisee's control shall include, without limitation, acts of God, floods, earthquakes, landslides, hurricanes, fires and other natural disasters, acts of public enemies, riots or civil disturbances, sabotage, strikes and restraints imposed by order of a governmental agency or court. A fault shall not be deemed to be beyond the franchisee's control if committed by a corporation or other business entity in which the franchisee holds a controlling interest whether held directly or indirectly, when such fault is due to franchisee's financial inability to perform or comply, economic hardship, or misfeasance, malfeasance or nonfeasance by any of the franchisee's directors, officers, employees or contractors or agents.
(c) Effect of pending litigation. Pending litigation or any appeal to any regulatory body or court having jurisdiction over the franchisee shall not excuse the franchisee from the performance of its obligations under this code or the franchise unless specifically provided for by court order or by the regulatory body having jurisdiction over such matters. Failure of the franchisee to perform such obligations because of pending litigation or petition may result in forfeiture or revocation pursuant to the provisions of this section.
(d) Procedure prior to revocation. The Town shall notify the franchisee in writing of the exact nature of the alleged violation constituting a ground for termination and give the franchisee thirty (30) days, or such greater amount of time as the Town may specify, to correct such violations or to present facts and arguments to refute the alleged violation. If the Town then concludes that there is a basis for termination, it shall notify the franchisee thereof. If within the designated time the franchisee does not remedy and/or put an end to the alleged violation, the Town, after a public hearing where all interested parties may be heard, may suspend or revoke the franchise, if it determines that such action is warranted. The franchisee shall not be held in default nor suffer any penalties where noncompliance or default is caused by an event beyond the franchisee's control. The franchisee shall have the right to review by a court of competent jurisdiction upon the Town Commission's determination of non-compliance.
(Ord. 94-05, passed 12-14-94)