§ 710.113. Revocation of franchise.  


Latest version.
  • (a)

    In addition to all of the rights and powers reserved by or pertaining to the City, the City reserves as an additional and as a separate and distinct power the right to terminate and/or revoke the franchise and all rights and privileges of the Franchisee hereunder in any of the following events or for any of the following reasons, in the manner allowed by federal law, with notice, opportunity to cure, and subject to all due process rights including a public hearing:

    (1)

    Should the Franchisee by act or omission breach any material term or condition including but not limited to the failure to provide 6 monthly reports or two quarterly reports as required in Sections 710.107(d)(4) and (6)(f), or exhibits a practice of intentional misrepresentation, fraud or deceit by a Franchisee in connection with such reports in one calendar year, shall be among the sufficient grounds for revocation of the Agreement.

    (2)

    Should the Franchisee become insolvent, unable or unwilling to pay its debts or be adjudged a bankrupt or all or a substantial part of the Franchisee's facilities be sold under an instrument to secure a debt. In such an instance, the value of this Franchise Agreement can be calculated only on the value of the hard assets and not on the value of the subscriber base.

    (3)

    Should the Cable System in the Franchise Area or any substantial portion thereof within the Franchise Area fail to meet in total the minimum FCC signal standards for two tests in any three year period, or if any one such individual failure is not corrected within 90 days.

    (b)

    The following procedures are to be followed for the revocation of the Agreement:

    (1)

    The Director shall prepare a letter to the Franchisee placing the Franchisee on notice of the intended revocation, and identifying with specificity those Sections in the Agreement alleged to have been breached (the "Revocation Letter").

    (2)

    Franchisee shall prepare a written defense to the Revocation Letter and shall serve such response within 30 days of the receipt of the Revocation Letter. Franchisee's letter shall either refute the breach or outline a plan for curing the alleged breach. Thereafter, in the event the Franchisee has not previously had an opportunity to cure for a matter that they did not refute, Franchisee shall have 60 days to commence a cure of the alleged breach, unless a longer period of time is agreed upon with the City. The City shall notify Franchisee if the proposed or actual cure is insufficient so that an acceptable cure may be negotiated. Should the matter not be resolved, the City will file a resolution revoking the Franchise, and shall hold one quasi-judicial hearing on the matter no earlier than 60 days after the receipt of the written response from Franchisee. Exhibits shall be prepared and submitted by stipulation, with any reservations to their admission noted on the stipulation by each party.

    (c)

    Force Majeure. The Franchisee shall not be held in default under, or in noncompliance with, the provisions of the Franchise Agreement or this Chapter, nor suffer any enforcement or penalty relating to noncompliance or default (including termination, cancellation or revocation of the Franchise), where such noncompliance or alleged defaults occurred or were caused by strike, riot, war, earthquake, flood, tidal wave, unusually severe rain or snow storm, hurricane, tornado or other catastrophic act of nature, labor disputes, failure of utility service necessary to operate the Cable System, governmental, administrative or judicial order or regulation or other event that is reasonably beyond the Franchisee's ability to anticipate or control. This provision also covers work delays caused by waiting for utility providers to service or monitor their own utility poles on which the Franchisee's cable and/or equipment is attached, as well as unavailability of materials and/or qualified labor to perform the work necessary.

    (d)

    If the franchise is revoked; the City shall issue a request for proposals for a new franchisee. Franchisee's cable system shall be sold to the City or subsequent Franchisee for fair market value; provided, however, no value shall be attributed to the franchise itself, and the fair market value shall be for the cost of hard assets.

(Ord. 2003-188-E, § 1)