§ 71-45. Forfeiture of franchise.  


Latest version.
  • (a)

    In addition to all other rights and powers pertaining to the city by virtue of this chapter or otherwise and notwithstanding any other provision of this chapter to the contrary, the city reserves the right to terminate and cancel any franchise granted and all rights and privileges of a grantee hereunder in the event that the grantee:

    (1)

    Becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt;

    (2)

    Practices any fraud or intentional misrepresentation upon the city;

    (3)

    Materially misrepresents any material fact in the application for or during negotiation of the franchise or any extension or renewal;

    (4)

    Voluntarily ceases to operate its cable communication system for any reason without written approval of the city, including but not limited to upon the voluntary filing of a petition of bankruptcy;

    (5)

    Fails to fully comply with a pole use agreement or other appropriate agreement with the city for usage of poles or other appropriate facilities necessary to the satisfactory operation of the cable television system and fails to cure any such violation within any applicable cure period of such agreement;

    (6)

    Knowingly and willfully refuses to comply with any lawful orders or rulings of any regulatory body applicable to the grantee relating to its performance under the terms of its franchise or this chapter within ten business days of receipt of notice of such order or ruling from the city; or

    (7)

    Is convicted by a court of competent jurisdiction of any fraud or deceit upon the city, fraud or deceit on a cable subscriber, or fraud or deceit on any class or group of subscribers (e.g. senior citizens, basic subscribers, premium subscribers, etc.).

    (8)

    Violates any provision of this chapter which violation results in the death of any person or the damage or destruction of any property within the city exceeding $50,000.00 in value in any one incident.

    (9)

    Violates any other material provision of this chapter or of any franchise agreement entered into hereunder, or any rule, order or determination of the city or city commission made pursuant to this chapter and fails to cure any such violation after any applicable cure period provided in this chapter or the grantee's franchise agreement, including but not limited to the cure period provided in section 71-44 above;

    The general right to cure violations of this chapter and franchise agreements provided to grantees in section 71-44 of this chapter shall not apply to the events listed in numbers (1) through (8) above for which no cure period is provided to a grantee prior to the city's ability to implement proceedings for termination of a franchise or other remedies under this chapter.

    (b)

    Such termination and cancellation shall in no way affect any of the city's rights under this chapter or any provisions of law. In the event that such termination and cancellation depends upon a finding of fact, such finding of fact as made by the city commission or its representative shall be conclusive; provided, however, that before any franchise granted under this chapter may be terminated and cancelled under this section, the grantee must be provided with notice and an opportunity to be heard before the city commission.

    (c)

    Unless otherwise ordered by a regulatory body or court having jurisdiction, pending litigation or any appeal to any regulatory body or court having jurisdiction over the grantee shall not excuse the grantee from the performance of its obligations under this chapter or any franchise agreement. The failure of the grantee to perform such obligations because of pending litigation or petition may result in forfeiture or revocation pursuant to the provisions of this section.

    (d)

    Procedure prior to forfeiture.

    (1)

    City shall provide a grantee written notice of any and all violations of requirements, limitations, terms, conditions, rules or regulations deemed cause for termination and forfeiture of the grantee's franchise. Upon the expiration of any applicable cure period, if any, without cure, the city may place its request for termination and forfeiture of the franchise upon a regular city commission meeting agenda. The city shall cause to be served upon such grantee at least 14 days prior to the date of such commission meeting a written notice of this intent to request termination and forfeiture and the time and place of the meeting, notice of which shall be published by the city clerk at least once, seven days before such meeting in a newspaper of general circulation within the city.

    (2)

    The city commission shall hear any persons interested therein, and shall determine, whether or not any failure, refusal or neglect by the grantee was with just cause.

    (3)

    If such failure, refusal or neglect by the grantee was with just cause, the city commission shall direct the grantee to comply within such time and manner and upon such terms and conditions as are reasonable in the city commission's determination.

    (4)

    If the city commission shall determine such failure, refusal, or neglect by the grantee was without just cause, then the city commission may, by resolution take one or more of the following actions:

    a.

    Issue a citation setting forth the grantee's failure or breach and warning that future similar misconduct may result in termination of grantee's franchise;

    b.

    Declare that the franchise of the grantee shall be forfeited and terminated; or

    c.

    Declare that the franchise of the grantee shall be forfeited and terminated, unless corrective action is undertaken and completed by the grantee within a fixed period of time.

(Ord. No. 02-03, Art. II(15), 2-28-02)