§ 30-18. Termination of franchise.

(a)

The city reserves the right to terminate a franchise and all rights and privileges of the grantee in the event of a substantial breach of its terms and conditions. A substantial breach by a grantee shall include, but shall not be limited to, the following:

(1)

A grantee refuses, neglects, or fails to construct, operate or maintain its cable system in accordance with the terms of this chapter and its franchise;

(2)

Fails to comply with the conditions of occupancy of any public ways;

(3)

Willfully or knowingly makes false statements on or in connection with its franchise application or proposal for renewal;

(4)

Fails or refuses to remit to the city its franchise fee in a timely manner;

(5)

In any other way substantially violates the material terms or the material conditions of this chapter or its franchise;

(6)

Violates any material provision of a franchise or any material rule, order, regulation or determination of the city made pursuant to a franchise; or

(7)

Attempts to evade any material provision of a franchise or commit or attempt to commit any fraud or deceit upon the city.

(b)

The foregoing shall not constitute a major breach if the violation occurs but it is without fault of a grantee or occurs as a result of circumstances beyond its control. A grantee shall not be excused by mere economic hardship nor by misfeasance or malfeasance or omissions of its directors, officers, or employees.

(c)

Prior to termination procedures, the city manager shall make a written demand that a grantee comply with any such provision, rule, order, or determination under or pursuant to a franchise or this chapter. If the violation by a grantee continues for a period of thirty (30) days following such written demand without written proof that corrective action has been taken or is being actively and expeditiously pursued, the city manager may place the issue of termination of the franchise before the council. The city shall serve on the grantee, at least fifteen (15) days prior to the date of such council meeting, a written notice of intent to request such termination and the time and place of the meeting. Public notice shall be given of the meeting and issue which the council is to consider.

(d)

The council shall hear and consider the issue and shall determine, in its discretion, whether or not any violation by the grantee has occurred.

(e)

If the council determines the violation by a grantee was the fault of the grantee and within its control, the council may, by resolution, declare that the franchise of the grantee shall be terminated. The council may order a compliance period of thirty (30) days or more. Opportunity for compliance does not need to be granted for fraud or misrepresentation.

(f)

The issue of termination shall automatically be placed upon the council agenda if compliance is not met by the expiration date. The council then may terminate the franchise upon a finding that the grantee has failed to achieve compliance or may further extend the period.

(g)

The grantee may appeal the determination of the city to terminate the franchise to an appropriate court, which shall have the power to review the decision of the city de novo and to modify or reverse such decisions as justice may require. Such appeal must be taken within sixty (60) days of issuance of the determination of the city.

(Ord. No. 5344, § 1, 11-15-94)