5.60.330 Enforcement and remedies – Revocation.
A. The City council may revoke a franchise, or if so provided in a franchise, reduce the term of a franchise if it finds, after a hearing, that a cable communications system operator has violated any material provision of this chapter or applicable law, committed a substantial breach of material terms of its franchise, or repeatedly failed to comply with material terms of its franchise; has defrauded or attempted to defraud the City or its subscribers or has attempted to evade the requirements of this chapter or its franchise. Such a breach includes, but is not be limited to (after failure to cure as provided in the franchise):
1. If the grantee becomes insolvent, unable or unwilling to pay its debts, or upon listing of an order for relief in favor of grantee in a bankruptcy proceeding.
2. If the grantee materially fails to meet the customer service standards established in the franchise consistently over a calendar quarter.
3. If the grantee fails to provide or maintain in full force and effect, the liability and indemnification coverage, letter of credit, cash security fund or bonds required by the franchise.
4. If the grantee willfully violates any orders or rulings of any regulatory body having jurisdiction over the grantee relative to the franchise; provided, that the grantee may contest any such orders or rulings by appropriate proceedings conducted in good faith, in which case no breach of the franchise shall be deemed to have occurred if the notice of violation is overturned.
5. If the grantee ceases to provide all cable communications and terminates service over all or a substantial portion of its cable system for a period of five (5) days or more, for any reason within the control of the grantee.
6. If the grantee willfully fails to make any payments required under the franchise and/or refuses to provide city with required information, reports and/or test results in a timely manner as provided in the franchise, or in the City code.
7. If the grantee fails to initiate scheduled cable communications system construction or reconstruction as required under the franchise more than one year after construction is to be begin for any reason within the control of the grantee.
8. Delays in completion of scheduled cable communications system construction or reconstruction as required under the franchise for any reason within the control of the grantee.
9. Any other act or omission by the grantee which materially violates the terms, conditions or requirements of the franchise which is not corrected or remedied within the time set forth in the written notice of the violation or, if the grantee cannot reasonably correct or remedy the breach within the time set forth in such notice, if the grantee should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter.
B. Before conducting a hearing to consider revocation of a franchise: (1) the franchise manager must have given written notice of a claimed breach, default or failure; and (2) the grantee must have been given thirty (30) days to cure the claimed default.
C. The cable communications system or a part thereof will be deemed abandoned if (1) the cable communications system operator notifies the City of its intent to abandon; or (2) the cable communications system operator willfully ceases providing cable service in accordance with its franchise; or (3) the cable communications system operator does not provide cable service over the cable communications system for six (6) months and is not restoring service with all due diligence.
D. A franchise will terminate automatically by operation of law one hundred twenty (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 grantee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding. However, the franchise may be reinstated within that one hundred twenty (120) day period, if: (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, and has executed an agreement, approved by any court having jurisdiction, assuming and agreeing to be bound by the terms and conditions of the franchise.
E. In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a grantee, the City may revoke the franchise by serving notice upon the grantee and the successful bidder at the sale, in which event the franchise and all rights and privileges thereunder will be revoked and will terminate thirty (30) calendar days after serving such notice, unless: (1) city has approved the transfer of the franchise to the successful bidder; and (2) the successful bidder has covenanted and agreed with the City to assume and be bound by the terms and conditions of the franchise. (Ord. 2546 § 2 (part), 2010: Ord. 2174 § 1 (part), 2003).