§ 11-3-17. Forfeiture or revocation.

(a)

Grounds for revocation. The city reserves the right to revoke any franchise granted hereunder and rescind all rights and privileges associated with the franchise in accordance with the Communications Policy Act and with the procedures set forth herein in the following circumstances, each of which represents a default and breach under this chapter and the franchise grant:

(1)

Grantee's default in the performance of any of the material obligations under this chapter, the franchise or under such documents, contracts and other terms and provisions entered into by and between the city and the grantee, including timely payment of any amounts owed.

(2)

Grantee's failure to provide or maintain in full force and effect the liability and indemnification coverage or the performance bond as required herein or by the franchise.

(3)

Grantee's violation of any orders or rulings of any regulatory body having jurisdiction over the grantee relative to this chapter or the franchise after notice thereof, continuing and not being remedied within 60 days of notice.

(4)

Grantee's fraud or any unfair or deceptive act or practice with regard to the city or grantee's subscribers under the laws of the state.

(5)

Grantee's system construction schedule is delayed later than the schedule contained in the franchise or beyond any extended date set by the city.

(6)

Grantee's insolvency, inability, or unwillingness to pay its debts; or [grantee] is adjudged bankrupt.

(7)

Grantee's failure to restore service to the subscriber after 96 consecutive hours of interrupted service, except when written approval of such interruption is obtained from the city.

(8)

Grantee's misrepresentation of a material fact in the application for or negotiation of the franchise or any extension or renewal thereof.

(9)

Grantee's failure to provide cable services for any reason that is within the control of the grantee over the system.

(b)

Effect of circumstances beyond control of grantee. The grantee shall not be declared at fault or be subject to any sanction under any provision of this chapter in any case in which performance of any such provision is prevented or delayed due to an Act of God or for reasons beyond the grantee's control. A fault shall not be deemed to be beyond the grantee's control if committed by a corporation or other business entity in which the grantee holds a controlling interest, whether held directly or indirectly.

(c)

Court order. Grantor and grantee will abide by the terms of any stay order issued by a court of competent jurisdiction.

(d)

Procedure prior to revocation.

(1)

The city shall make written demand that the grantee comply with any material requirement, limitation, term, condition, rule or regulation or correct any action deemed cause for revocation. If the failure, refusal or neglect of the grantee continues for a period of 30 days following such written demand, the city shall place its intent to revoke the franchise upon a regular city council meeting agenda. The city shall cause to be mailed by certified mail to grantee at least 10 days prior to the date of such meeting, a written notice of intent to revoke and the reasons therefor, and the time and place of the meeting, notice of which shall be published by the city clerk at least once 10 days before such meeting in a newspaper of general circulation within the city.

(2)

The city council shall hear any persons interested therein, and shall determine in its discretion, 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, as reasonably determined by the city, the city council shall direct the grantee to comply within such time and manner and upon such terms and conditions as are reasonable.

(4)

If the city council shall determine that such failure, refusal, or neglect by the grantee was without just cause, then the city council shall, by resolution, declare that the franchise of the grantee shall be revoked and terminated and bond forfeited either conditionally or unconditionally.

(5)

If the revocation of the franchise depends upon a finding of fact, such finding of fact shall be made by the city only after an administrative hearing, providing the grantee with a full and fair opportunity to be heard, including without limitations the right to introduce evidence, the right to production of evidence and to question witnesses. A transcript shall be made of such hearings. The grantee shall have the right to appeal any such administrative decision to a court of competent jurisdiction.

(e)

Disposition of facilities. In the event a franchise is revoked or otherwise terminated, the city may, in its sole discretion, do any of the following:

(1)

Purchase the system under the procedures set forth in this chapter, at a fair market price;

(2)

Effect a transfer of the system to another person;

(3)

Order the removal of the system facilities from the public ways within a reasonable period of time as determined by the city or require the original grantee to maintain and operate its system for a period of six (6) months or until such further time as is mutually agreed upon.

(f)

Restoration of property. In removing its system, or part thereof, the grantee shall refill, at its own expense, any excavation that shall be made by it and shall leave all public ways and places in as good a condition or better as that existing prior to the grantee's removal of its system without affecting the electrical, telephone, or other cable, wires, or attachments. The city may inspect and approve the condition of the public ways and cables, wires, attachments, and poles after removal. The liability, indemnity, insurance and performance bond as provided herein shall continue in full force and effect during the period of removal and until the grantee has fully complied with the terms and conditions of this chapter and the franchise.

(g)

Restoration by city; reimbursement of costs. In the event of a failure by the grantee to complete any restoration work required by the city within the time as may be established by the city and to the satisfaction of the city, the city may, following reasonable notice to the grantee, cause such work to be done and the grantee shall reimburse the city the cost thereof within 30 days after receipt of an itemized list of such cost, or the city may at its option recover such costs through the performance bond provided by grantee.

(h)

Extended operation. Upon either the denial of renewal or revocation of a franchise, the city may require the grantee to continue to operate the system for a period of six (6) months from the date of such denial or revocation, or until such time beyond six (6) months as is mutually agreed upon. The grantee shall, as trustee for its successor in interest, continue to operate the system under the terms and conditions of this chapter and the franchise.

(Ord. No. 98-66, 7-2-98)