(A) The Board of Commissioners 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 chapter or the franchise agreement:
(1) If the grantee shall default in the performance of any of the material obligations under this chapter or under the documents, contracts, and other terms and provisions entered into by and between the town and the grantee;
(2) If the grantee shall fail to provide or maintain in full force and effect the liability and indemnification coverage or the performance bond as required herein pursuant to the franchise agreement;
(3) If the grantee’s construction schedule is delayed later that the schedule contained in the franchise agreement, if any, or beyond any extended date set by the Town Board of Commissioners;
(4) If the grantee becomes insolvent or unable to pay its debts or is adjudged bankrupt;
(5) If the grantee fails to restore service after 96 consecutive hours of interrupted “system-wide” service, except when the service interruption is caused by forces beyond the grantee’s control (including but not limited to subscribers), or when approval of the interruption is obtained from the Town Manager or his or her designee; and/or
(6) If there has been material misrepresentation of fact in the application for or negotiation of the franchise or any extension or renewal thereof.
(B) The 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 the grantee’s control. A fault shall not be deemed to be beyond the grantee’s control if committed by a corporation or other business entity in which the grantee holds a controlling interest, whether held directly or indirectly.
(C) Procedure prior to revocation:
(1) The town shall make written demand that the grantee comply with any such requirement, limitation, term, condition, rule, or regulation or correct any action deemed cause for revocation. If the failure, refusal, or neglect of the grantee continues for a period of 30 days following the written demand, the town shall place its request for revocation of the franchise upon a regular council meeting agenda. The town shall cause to be served upon the grantee, at least seven days prior to the date of the Board meeting, a written notice of this intent to request the revocation, and the time and place of the meeting, notice of which shall be published by the Town Clerk at least twice, seven and 14 days respectively, before the meeting, in a newspaper of general circulation within the town;
(2) The Board of Commissioners shall hear any persons interested therein, including the grantee, and shall determine in its discretion whether or not any failure, refusal, or neglect by the grantee was with just cause;
(3) If the failure, refusal, or neglect by the grantee was with just cause, as defined by the town, the Board of Commissioners shall direct the grantee to comply within the time and manner and upon the terms and conditions as are reasonable; and
(4) If the Board of Commissioners shall determine the failure, refusal, or neglect by the grantee was without just cause, then the Board of Commissioners shall, by resolution, declare that the franchise of the grantee shall be revoked and bond shall be forfeited, unless there is compliance by the grantee within 90 days.
(D) In the event a franchise is revoked or otherwise terminated, the town may, in its sole discretion, do any of the following:
(1) Purchase the system under the procedures set forth in § 111.025;
(2) Effect a transfer of ownership of the system to another party for good and sufficient consideration, which shall be an amount at least equal to the fair market value of the system under the original grantee’s operation, in accordance with the Cable Act; and/or
(3) Order the removal of all system facilities from the town within a reasonable period of time.
(E) In removing its system facilities, the grantee shall refill, at its own expense, any excavation that shall be made by it and shall leave all public ways and places in as good a condition, normal wear and tear excepted, as was prevailing prior to the grantee’s removal of system facilities. The town shall inspect and approve the condition of the public ways and public places and cables, wires, attachments, and poles after removal. The liability, indemnity, insurance, and performance bond as provided herein shall continue in full force and effect during the period of removal and until full compliance by the grantee with the terms and conditions of this division (E), this chapter, and the franchise agreement is reached.
(F) In the event of a failure by the grantee to complete any work required by § 111.016(A), 111.016(C), and/or division (E) above or any other work required by town law or ordinance, and upon reasonable notice to the grantee, the town may cause the work to be done and the grantee shall reimburse the town the reasonable costs thereof within 30 days after verification of an itemized list of the costs. The town shall be permitted to seek legal and equitable relief to enforce the provisions of this section.
(G) Upon either the expiration or revocation of a franchise, the town may contract with the grantee to continue to operate the system for a period of six months from the date of the expiration or revocation, or until the time as is mutually agreed upon. The grantee shall, as a subcontractor of the town, continue to operate the cable communications system under the applicable terms and conditions of this chapter. The town shall be permitted to seek legal and equitable relief to enforce the provisions of this section.
(Ord. passed 10-13-1998)