§ 22-24. Revocation or termination of franchise.

(a)

A franchise may be revoked by the city commission for a franchisee's failure to construct, operate or maintain the cable system as required by this chapter or the franchise agreement, or for any other material violation of this chapter or material breach of the franchise agreement. To invoke the provisions of this subsection, the city shall give the franchisee written notice, by certified mail at the last known address, that franchisee is in material violation of this chapter or in material breach of the franchise agreement and describing the nature of the alleged violation or breach with specificity. If within 30 calendar days following receipt of such written notice from the city to the franchisee, the franchisee has not cured such violation or breach, or has not commenced corrective action and such corrective action is not being actively and expeditiously pursued, the city may give written notice to the franchisee of its intent to revoke the franchise, stating its reasons.

(b)

Prior to revoking a franchise under subsection (a) hereof, the city commission 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 city commission may determine whether to revoke the franchise based on the evidence presented at the hearing, and other evidence of record. If the city commission 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)

Notwithstanding subsections (a) and (b) hereof, any franchise may, at the option of the city following a public hearing before the city commission, 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 having jurisdiction, assuming and agreeing to be bound by the terms and conditions of this chapter and the franchise agreement.

(d)

In the event of foreclosure or other judicial sale of any of the facilities, equipment or property of a franchisee, the city may revoke the franchise, following a public hearing before the city commission, by serving notice upon the franchise 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 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 agreement and this chapter.

(e)

If the city revokes a franchise, or if for any other reason a franchisee abandons, terminates or fails to operate or maintain service to its subscribers for a period of six months, the following procedures and rights are effective:

(1)

The city 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 city may have the removal done at the former franchisee's and/or surety's expense.

(2)

The city, by resolution of the city commission, may acquire ownership, or effect a transfer, of the cable system at an equitable price.

(3)

If a cable system is abandoned by a franchisee, the city may sell, assign or transfer all or part of the assets of the system.

(f)

Where the city has issued a franchise specifically conditioned in the franchise agreement upon the completion of construction, system upgrade or other specific obligation by a specified date, failure of the franchisee to complete such construction or upgrade, will result in the automatic forfeiture of the franchise without further action by the city where it is so provided in the franchise agreement, unless the city, at its discretion and for good cause demonstrated by the franchisee, grants an extension of time.

(g)

No franchisee will construct or activate a system upgrade in any community served by the same system prior to activating the upgrade for all subscribers within the city, without prior authorization from the city.

(h)

Except as provided in subsection (f), no adverse action against a franchisee may be taken by the city pursuant to this section except after a noticed public hearing at which the franchisee is given an opportunity to participate.

(Ord. No. 2001-3289, § 24, 1-10-01)