Revocation procedures

(a)

Whenever a grantee shall refuse, neglect or willfully fail to construct, operate or maintain its cable television system or to provide service to its subscribers in substantial accordance with the terms of this chapter and the franchise; to comply with the conditions of occupancy of any public ways; to make required extensions of service or in any other way substantially violate the terms and conditions of this chapter, the franchise or any applicable rule or regulation; practices any fraud or deceit upon the city or its subscribers; fails to pay franchise fees when due or if a grantee becomes insolvent or unable to or unwilling to pay its uncontested debts or is adjudged bankrupt or seeks relief under the bankruptcy laws, then the franchise may be revoked.

(b)

If the mayor or the designee believes that grounds for revocation exist or have existed, the mayor or designee may notify a grantee, in writing, setting forth the nature and facts of the noncompliance. If, within thirty (30) days following the written notification, the grantee has not furnished reasonably satisfactory evidence that corrective action has been taken or is being actively and expeditiously pursued or that the alleged violations did not occur or that the alleged violations were beyond the grantee's control, the mayor or the designee may thereupon refer the matter to the city council.

(c)

Upon referral from the mayor or the designee or by its own motion, the city council, with the approval of the mayor, may revoke a franchise pursuant to subsection (a).

(d)

The mayor, with the approval of the city council, shall not revoke a franchise pursuant to subsection (c) until the city has given notice to the grantee that it proposes to take such an action and the grounds therefor. Further, the city shall not revoke a franchise until the grantee or its representative has had reasonable opportunity to be heard before the city council and show that the proposed grounds for revocation did not or do not exist, as the case may be.

(e)

A grantee shall not be subject to the sanctions of this section for any act or omission wherein such act or omission was beyond the grantee's control. An act or omission shall not be deemed to be beyond a grantee's control if committed, omitted or caused by a corporation or other business entity which holds a controlling interest in the grantee, whether held directly or indirectly. Further, the inability of a grantee to obtain financing, for whatever reason, shall not be an act or omission which is "beyond the grantee's control."

(f)

If a franchise has been revoked by the city, it shall have an option, to the extent then permitted by existing law, to either purchase the tangible assets of the grantee's cable television system previously governed by the franchise at their depreciated value, as defined herein, or assign such rights to purchase or require removal of all grantee's property located within the public ways of the city at the grantee's expense. Such an option must be exercised within one (1) year from the date of the revocation of the franchise or the entry of the order upon appeal of same, whichever is later.

(g)

The termination of a grantee's rights under a franchise shall in no way affect any other rights the city may have under the franchise or under any provision of the law.

(Code 1971, § 52-36; Ord. No. 7864-A, § 1(Art. IV, § 6), 1-28-82)