1. Grounds for Revocation. If the grantee has been given due notice and a reasonable opportunity to cure, the City 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 under this chapter and a material breach of the franchise:
A. If the grantee shall 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 City and the grantee, subject to the provisions on cure.
B. If the grantee should fail to provide or maintain in full force and effect, the liability and indemnification coverage or the security fund or bonds as required herein.
C. 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 the franchise documents, including this chapter, the franchise agreement and grantee’s proposal is invalid or unenforceable prior to the commencement of initial system construction.
D. If the grantee ceases to provide service for a period exceeding 30 days for any reason within the control of the grantee over the cable system, or abandons the management and/or operation of the system.
E. If the grantee willfully violates any of the material provisions of this chapter or the franchise agreement or attempts to practice any fraud or deceit upon the City.
F. If the grantee becomes insolvent, or upon listing of an order for relief in favor of grantee in a bankruptcy proceeding.
G. If the grantee transfers a controlling interest of the franchise without the prior approval or consent of the City as required in Section 115.08.
2. Procedure Prior to Revocation.
A. The City shall make a written demand that the grantee comply with any requirements, limitations, terms, conditions, rules, or regulations or correct any action deemed cause for revocation. Such written demand shall detail the exact nature of the alleged noncompliance and shall provide the grantee with 30 days in which to correct the alleged noncompliance. In the event the stated violation is not corrected to the City’s satisfaction within said 30 days, the City shall schedule a public hearing and notify the grantee in writing of said public hearing.
B. At the scheduled public hearing, the City shall hear any persons interested therein and shall provide the grantee with an opportunity to provide testimony and evidence. The City, following the public hearing, shall issue a written decision no sooner than 30 days following the hearing. The City shall determine, based upon the preponderance of the evidence, whether the grantee committed a material breach of this chapter or the franchise agreement and, if so, whether such breach was willful and whether said franchise shall be revoked.
C. If the City determines that the grantee has willfully committed a material breach, then the City may, by resolution, declare the franchise terminated and that the grantee’s security fund and bonds be forfeited. Alternatively, the City may, at its option, direct the grantee to take appropriate remedial action within such time and under such terms and conditions as the City may prescribe in order to avoid termination of the franchise.
D. Upon revocation of the franchise, the City may, in a lawful manner and upon payment of fair market value, determined on the basis of the cable system as a going concern exclusive of any value attributable to the franchise itself, obtain, purchase, acquire, take over and hold the cable system.