§ 1-10-167. Default of franchise; revocation, termination, or cancellation of franchise.

(a)

When any event, act, or omission (on the part of a franchised cable operator) occurs which represents a violation of a substantive provision of this article, or substantially impairs the corporate character, or legal, financial, or technical integrity and/or stability of the cable system or the franchised cable operator to such a degree that the interests of the customers are negatively affected, then such event, act, or omission shall be considered a material breach of this article. Under such circumstances, the board/franchising authority shall notify the affected franchised cable operator in writing of the specific breach and direct such franchised cable operator to comply with all such provisions of its franchise, franchise resolution, franchise agreement, or this article.

(b)

For illustrative purposes only, the events, acts, and omissions referred to above include, but are not limited to: Bankruptcy, insolvency, failure to pay taxes or franchise fees, failure to receive prior written board/franchising authority approval for an assignment, transfer, or sale of a franchise, or the entry of intentionally erroneous or false information into a franchised cable operator's books and records.

(c)

Where a franchised cable operator satisfactorily corrects any of the conditions enumerated in subsection (b) of this section within sixty (60) days, then in no event shall the enumerated condition be weighed against such franchised cable operator in any subsequent review of franchise performance.

(d)

A copy of such notice of material breach shall be mailed to the surety on the performance bond (if such a performance bond exists), unless otherwise directed by state law.

(e)

Within seventy-five (75) days after such written notice is mailed to a franchised cable operator, the board/franchising authority shall, if the matter has not been resolved, conduct a public hearing on the matter (unless state law requires a different procedure, in which case the state procedure shall control).

(f)

The board/franchising authority shall provide written notice to a franchised cable operator and to the surety of the time and place of such public hearing in a manner either consistent with state law or as approved by the board/franchising authority.

(g)

At the time of the hearing, the affected franchised cable operator may present information on the current status of the alleged breach of the franchise, franchise resolution, or franchise agreement. If the situation has been resolved, or steps have been taken to resolve the situation, then the franchised cable operator shall present the information at the hearing.

(h)

If the affected franchised cable operator fails to attend the hearing and has not requested a continuance of the hearing, then such franchised cable operator shall be deemed to have waived its right to a further continuation of the matter and may be declared in default of the franchise, franchise resolution, or franchise agreement.

(i)

After the public hearing, the board/franchising authority may determine the franchised cable operator to be in compliance and dismiss the matter or may determine that the franchised cable operator has cured any noncompliance or breach and thereby dismiss the matter. However, the board/franchising authority may determine that an ordinance, franchise, franchise resolution, or franchise agreement violation exists and remains uncured. Consequently, upon a finding that the franchised cable operator violated a material provision of the ordinance, franchise, franchise resolution, or franchise agreement, or failed to cure an outstanding violation of the ordinance, franchise, franchise resolution, or franchise agreement, thereafter the board/franchising authority may revoke, terminate, or cancel the franchise, franchise resolution, or franchise agreement, unless the franchised cable operator presents sufficient mitigating circumstances to the board/franchising authority.

(j)

If the board/franchising authority directs corrective action to take place within a specified period of time or declares such franchised cable operator in default of the franchise, franchise resolution, or franchise agreement, then that declaration shall be reduced to writing, and the notice of corrective action or default shall be mailed to such franchised cable operator, and surety, within twenty-one (21) days of the board/franchising authority's action.

(k)

If within sixty (60) days of such notice, the affected franchised cable operator or surety does not take significant action to rectify the breach or submit a plan detailing how the affected franchised cable operator will eliminate the breach, then the board/franchising authority shall revoke such franchised cable operator's franchise, and shall notify the affected franchised cable operator and surety within seventy-two (72) hours of the board/franchising authority's action, unless the franchised cable operator presents sufficient mitigating circumstances within that seventy-two-hour time period.

(Ord. No. 97-023, § 1, 4-22-97)