(a) Basis for Revocation. A franchise may be revoked by the Borough for a franchisee's failure to construct, operate or maintain the cable system as required by this chapter or the franchise agreement, for defrauding or attempting to defraud the Borough or subscribers, if the franchise is declared bankrupt, or for any other material violation of this chapter or material breach of the franchise agreement. To invoke the provisions of this section, the Borough shall give the franchisee written notice via certified mail of the default in its performance. If within 30 calendar days following such written notice from the Borough to the franchisee, the franchisee has not taken corrective action or corrective action is not being actively and expeditiously pursued to the satisfaction of the Borough, the Borough may give written notice via certified mail to the franchisee of its intent to revoke the franchise, stating its reasons; provided that no opportunity to cure shall be provided where the franchisee has defrauded or attempted to defraud the borough or its subscribers, or in the event the franchisee is declared bankrupt. In the case of a fraud or attempted fraud, the franchise may be revoked after the hearing required under division (b) of this section; revocation for bankruptcy shall be governed by division (c) of this section.
(b) Procedure. Prior to revoking a franchise, the Borough shall hold a public hearing, upon 30 calendar days' notice, at which time the franchisee and the public shall be given an opportunity to be heard. Following the public hearing, the Borough may determine whether to revoke the franchise based on the information presented at the hearing, and other information of record. If the Borough determines to revoke a franchise, it shall issue a written decision setting forth the reasons for its decision. A copy of such decision shall be transmitted to the franchisee.
(c) Revocation After Bankruptcy. Any franchise may, at the option of the Borough following a public hearing before the Borough, be revoked 120 calendar days after an assignment for the benefit of creditors or the appointment of a receiver or trustee to take over the business of the franchisee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding, unless within that 120-day period:
(1) Such assignment, receivership, or trusteeship has been vacated; or
(2) Such assignee, receiver, or trustee has fully complied with the terms and conditions of this chapter and the franchise agreement and has executed an
agreement, approved by a court of competent jurisdiction, assuming and agreeing to be bound by the terms and conditions of this chapter and the franchise agreement, and such other conditions as may be established or as are required pursuant to Section 824.17.
(d) Revocation After Foreclosure. In the event of foreclosure or other judicial sale of any of the facilities, equipment, or property of a franchisee, the Borough may revoke the franchise, following a public hearing before the Borough, by serving notice on the franchisee and the successful bidder at the sale, in which event the franchise and all rights and privileges of the franchise will be revoked and will terminate 30 calendar days after serving such notice, unless:
(1) The Borough has approved the transfer of the franchise to the successful bidder; and
(2) The successful bidder has covenanted and agreed with the Borough to assume and be bound by the terms and conditions of the franchise agreement and this chapter, and such other conditions as may be established or as are required pursuant to Section 824.17.
(e) Rights on Revocation. If the Borough revokes a franchise, or if for any other reason a franchisee abandons, terminates, or fails to operate or maintain service to its subscribers, the following procedures and rights are effective:
(1) The Borough may require the former franchisee to remove its facilities and equipment at the former franchisee's expense. If the former franchisee fails to do so within a reasonable period of time, the Borough may have the removal done at the former franchisee's and/or surety's expense.
(2) In the event of revocation, the Borough, by resolution, may acquire ownership of the cable system at an equitable price.
(3) If a cable system is abandoned by a franchisee or the franchisee fails to operate or maintain service to its subscribers or otherwise terminates the franchise, the ownership of all portions of the cable system in public rights-of-way shall revert to the Borough and the Borough may sell, assign, or transfer all or part of the assets of the system.
(Ord. 920. Passed 7-14-97; Ord. 938. Passed 7-12-99.)