(A) Termination of franchise for cause. In addition to all other rights and powers of the city, the city reserves the right to terminate any franchise granted hereunder and all rights and privileges of a franchise hereunder in the event that any grantee:
(1) Violates any material provisions of this chapter or any rule, order, or determination of the city made pursuant hereto, provided however, a sanction for such violation has been finally imposed on at least one prior occasion within one year of final determination of the sanction and provided, further, that the city has found that the violation is material to this chapter or the franchise agreement awarded pursuant to this chapter;
(2) Becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt or is subject to the appointment of a receiver;
(3) Fails to begin or complete system construction or extension as provided in this chapter or a franchise granted thereunder; or
(4) Misrepresents any material fact in any reports required to be filed pursuant to this chapter.
(B) Termination procedures. No such termination shall take place unless and until the following procedures have been followed:
(1) The city shall provide grantee with written notice of the violation by certified mail. The notice shall specify the basis for the city's determination and shall specify the immediate action required of grantee to correct the material violation.
(2) If the violation continues for a period of 45 days following written notification from the city, the city may place a request for termination of the franchise on a regularly scheduled City Council meeting agenda. The city shall cause to be served upon the grantee by certified mail at least 14 days prior to the day of such City Council meeting, a written notice of the intent to request such a termination and the time and place of the meeting.
(3) After providing franchisee with notice and opportunity to be heard and in the event the city determines that grantee, by its acts or omissions, has given the city cause for termination of the franchise, the city may make written demand upon grantee for full compliance. If the material violation is not cured to the reasonable satisfaction of the city within 30 days or such additional time as the city may allow, the city may after written notice to grantee and final opportunity to be heard (in the exercise of its reasonable discretion) declare the franchise terminated and of no further force or effect.
(Ord. 94-09, passed 9-12-94)